Gov. Maura Healey’s administration doesn’t plan on additional downgrading income expectations by means of June nor slashing further {dollars} from the funds, the governor’s high finance official mentioned Tuesday, a day after January revenues reportedly tanked beneath already lowered benchmarks.
But Administration and Finance Secretary Matthew Gorzkowicz didn’t rule out extra funds reductions down the highway whilst he mentioned there was no “exercise underway” to implement what are referred to as 9C cuts, a unilateral transfer the governor could make to stability the state’s funds.
“We’re constantly looking at all of our options. It’s always a tool in the toolbox. I would never want to throw a tool away. I’m not one to throw any of our tools away. But there’s no plan at the moment. There’s no exercise underway to do more 9C cuts, but you never say never,” Gorzkowicz advised the Herald on the State House.
The Department of Revenue reported Monday that Massachusetts collected $3.5 billion in January, almost 7% or $263 million decrease than the revised expectation Healey issued in January after months of beneath benchmark tax collections.
Healey lower $375 million from the fiscal 12 months 2024 funds and located one other $625 million to assist stability out the funds after lowering the year-end income estimate by $1 billion. But even with these actions, Massachusetts once more finds itself in a troublesome monetary scenario.
Department of Revenue Commissioner Geoffrey Synder mentioned January collections decreased in earnings tax withholding, non-withheld earnings tax, company and enterprise tax, and “all other” tax when in comparison with the identical time final 12 months.
The decreases, Synder mentioned, have been partially offset by a rise in gross sales and use tax.
“These decreases were partially offset by an increase in sales and use tax. The decrease in non-withheld income tax was driven by lower income tax estimated and return payments and an unfavorable increase in income tax refunds. The decrease in withholding was mainly due to typical timing factors in collections,” Snyder mentioned in a Monday assertion.
Massachusetts Republican Party Chair Amy Carnevale mentioned the recurring sample of missed income targets in fiscal 12 months 2024 is “increasingly worrisome with each passing month.”
“A shortfall of $263 million is significant. This stark reality directly stems from the shortcomings of failed policies which not only strain the budget but also contribute to the exodus of residents from Massachusetts,” Carnevale mentioned in a press release.
Asked if the January income figures have been regarding, Gorzkowicz mentioned the Healey administration was already anticipating decrease tax revenues for the remainder of the fiscal 12 months.
“We anticipated and knew that there was going to be some additional risk going through. But we’re monitoring it and we’ll be doing what’s appropriate to make sure that budget ends in balance,” he mentioned.
Source: www.bostonherald.com”