Publications: FY Pre-2008

Tax revenues will grow much more slowly in 2007 and 2008 than they did the past two years, according to a forecast released today by the Massachusetts Taxpayers Foundation.

In its annual review of state finances, the Foundation cautions that while the Commonwealth is in its third year of financial recovery, the state's leaders now face the challenge of choosing from a long list of competing funding priorities that far exceed the state's ongoing fiscal capacity.

In a new analysis of the Commonwealth's financial situation, the Foundation focuses on a mounting appetite for new initiatives that threatens to overwhelm the state's ongoing fiscal capacity.

In its annual review of state finances, the Foundation cautions that while the Commonwealth is in its third year of financial recovery, the state's leaders now face the challenge of choosing from a long list of competing funding priorities that far exceed the state's ongoing fiscal capacity.

In its new analysis of Governor Romney's proposed 2007 budget, the Foundation highlights the budget's focus on restoring local aid to cities and towns and providing financial support for health care reform.

Tax revenues will increase roughly five percent per year in 2006 and 2007-down from the almost seven percent average pace of the last two years-as the state's workforce continues to expand at less than half the national rate, according to a forecast released today by the Massachusetts Taxpayers Foundation.

In a new analysis, the Foundation predicts a modest structural surplus in the state budget for fiscal year 2005 while sounding a warning on 2006 finances.

With the final Senate version of the fiscal 2006 budget $358 million higher than the House, the members of the 2006 budget conference committee will face the challenge of reducing the reliance on one-time revenues to pay for additional spending, according to a recently released analysis by the Foundation.

According to a new Foundation analysis, the fiscal 2006 budget recently adopted by the House takes a straightforward and constructive approach to the Commonwealth's finances over the coming year, with limited spending growth-only 2.5 percent over 2005-and a conscious focus on budget-making rather than unrelated policy initiatives.

In its annual review of state finances, the Taxpayers Foundation warns that largely uncontrollable growth in spending for core programs is outpacing the revenue growth that can be expected to be generated by the state's economy and tax base over the long term, leaving next to nothing for restoring budget cuts, funding new initiatives, or cutting taxes.