This MTF Brief summarizes the key elements of the Governor’s proposal
- Massachusetts ended FY 2021 with $34.1 billion in tax revenue - $5 billion higher than the revenue benchmark established in January.
- $1.1 billion of this surplus is due to capital gains collections that exceed a sustainable benchmark ($1.312 billion) and so is automatically deposited in the Stabilization Fund and other reserves;
- $1.1 billion is necessary to eliminate a planned FY 2021 Stabilization Fund draw;
- $173 million goes to the SBA and MBTA as part of their dedicated sales tax transfers;
- $809 million is necessary to offset delays in receipt of federal reimbursements, non-tax revenue downgrades and to make several FY 2022 MassHealth payments in FY 2021.
- The Governor appropriates (or otherwise uses) $1.76 billion of the approximately $1.82 billion in resources remaining after accounting for all offsets.