TAX REVENUE ACCORD SETS STAGE FOR NEW STATE SPENDING PLANS
By Colin A. Young
STATE HOUSE NEWS SERVICE
STATE HOUSE, BOSTON, JAN. 12, 2018....State tax revenues will grow at a 3.5 percent clip next fiscal year, state budget managers agreed on Friday, signaling that the governor and Legislature will have almost $27.6 billion available to spend, along with billions of dollars in federal and non-tax revenues, as they begin to shape the fiscal 2019 state budget.
Gov. Charlie Baker's budget chief and the chairs of the House and Senate Ways and Means Committees on Friday detailed a finalized accord on how much tax revenue the state expects to collect in fiscal year 2019, which begins on July 1. Budget watchers also upgraded their expectations for tax revenue in the current fiscal year, upping the projected total revenue by $157 million, to $26.661 billion.
The estimate of $27.594 billion in tax revenues for fiscal 2019 amounts to $933 million more in revenue than the updated projection for the current fiscal year. The projected growth rate will serve as the basis for Baker's budget, which is due on Jan. 24, and budget-building exercises this spring and summer in the House and Senate. The Republican governor and Democrats in the Legislature faced a Jan. 15 deadline to agree on a tax revenue estimate.
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