Massachusetts is just not “raining money” anymore, state lawmakers mentioned Tuesday.
The prime Senate finances author and the chamber’s rating Republican painted a lower than best fiscal image for Massachusetts, airing throughout a debate issues that they had for the long run well being of the state’s funds after a number of months of decrease than anticipated tax collections.
Massachusetts has skilled 4 consecutive months of beneath benchmark income collections in the course of the begin of fiscal 12 months 2024, mentioned Senate Ways and Means Chair Michael Rodrigues, a Westport Democrat. That follows years of “very robust revenue collections,” he mentioned.
“Even though there are storm clouds on the horizon, it’s not bright and sunny, it’s not raining money as it has been over the last few years, we are still being responsible in addressing the long-term liabilities of the commonwealth,” Rodrigues mentioned.
The first two months of the fiscal 12 months, July and August, noticed income collections collectively $20 million beneath benchmark, Rodrigues mentioned, a quantity that “really didn’t raise any concerns in a $56 billion budget.”
Those numbers, he mentioned, “are just rounding errors” and the 2 months are sometimes small for income collections.
September introduced “a big month” with quarterly funds due, he mentioned. But collections got here in about $170 million beneath benchmark, in response to the Department of Revenue.
“That did begin to raise eyebrows,” Rodrigues mentioned because the Senate debated a $2.8 billion supplemental finances that closes the books on fiscal 12 months 2023 and shuttles lots of of thousands and thousands to the Healey administration to take care of an overburdened shelter system.
October didn’t carry any higher information, with income collections down by about $180 million, Rodrigues mentioned.
“For the first time in my tenure as chair of Ways and Means, which is approaching five years, I’ve seen four consecutive months of below benchmark revenue collections,” Rodrigues mentioned.
Senate Minority Leader Bruce Tarr mentioned he appreciated Rodrigues’ “candor” in describing the state’s fiscal state of affairs.
“(It is) certainly not one that is cause for panic, but one that is cause for concern,” he mentioned. “I appreciate his approach to fiscal discipline that has allowed us to remain in a steady position as we see potential storm clouds gathering around us with regard to the financial stability of the commonwealth.”
Source: www.bostonherald.com”