BOSTON?— Secretary of Administration and Finance Matthew J. Gorzkowicz, Senate Ways and Means Chair Michael J. Rodrigues, and House Ways and Means Chair Aaron Michlewitz today agreed on a consensus revenue forecast for Fiscal Year 2024 (FY24) of $40.410 billion, a 1.6% increase in state tax revenue over adjusted Fiscal Year 2023 (FY23) projected revenue

 

. In addition, the agreement also estimates an additional $1 billion will be available in FY24 to support new education and transportation initiatives in line with the requirements of the new 4% surtax approved by ballot initiative in November 2022. 

 

An increase to the FY23 state tax revenue estimate was also announced by Secretary Gorzkowicz today, increasing the forecast by $151 million to $39.768 billion, based on current year-to-date revenues and economic data.

 

The Secretary and Chairs also reached agreement to utilize $100 million in FY23 to fully pay down pension liabilities attributable to the 2015 Early Retirement Incentive Program (ERIP) ahead of the previously established pension schedule, which would have seen these additional liabilities fully amortized in Fiscal Year 2027.   

 

Of the forecasted $40.410 billion in FY24 state tax revenues, an estimated $2.063 billion is projected to be capital gains tax revenue, of which, per statute, $583 million will be transferred to the Stabilization Fund and other long term liability funds for pension and retiree health insurance costs.  

The agreement also includes several off-budget transfers that are mandated by current law, including: 

•    $4.105 billion to be transferred to the pension fund, a $361 million increase over the FY23 contribution that keeps the Commonwealth on schedule to fully fund its pension liability by 2036 

•    $1.463 billion to support the operations of the Massachusetts Bay Transportation Authority (MBTA), an increase of $138 million over the FY23 budgeted contribution  

•    $1.303 billion for the Massachusetts School Building Authority (MSBA), an increase of $138 million over the FY23 budgeted contribution, which will support school construction projects across the Commonwealth  

•    $27 million for the Workforce Training Fund to support the Commonwealth’s workforce and business productivity and competitiveness