Massachusetts lawmakers received positive budget news this week, as the state collected $2.1 billion in tax revenue in February. This was $125 million more than last February and $122 million ahead of projections, indicating a strong financial performance. Year-to-date collections for the current fiscal year were also promising, with nearly $25.5 billion collected, an increase of 8.6% over the previous year.
This uptick in revenue is crucial as the state faces uncertainty in federal funding and potential budget cuts. Approximately $16 billion of Governor Maura Healey’s $62 billion budget relies on federal support, highlighting the importance of strong tax collections. While the state has over $8 billion in its Rainy Day Fund, Senate Ways and Means Committee Chairperson Michael Rodrigues expressed caution about tapping into it too soon.
Overall, the positive revenue numbers provide some financial stability for Massachusetts as lawmakers navigate potential federal cuts and work to ensure the state’s long-term economic health.
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