• December 2003

MTF Forecast: Modest Revenue Gains Ahead, Structural Budget Deficit Still Looms

At the annual consensus revenue hearing on Beacon Hill, the Massachusetts Taxpayers Foundation predicted state tax revenue growth of slightly more than four percent in both fiscal 2004 and 2005, based on conservative assumptions about the pace of growth in both the national and state economies. The forecast assumes that the recent strong gains in the national economy will slow, and that the Massachusetts economy will grow even more slowly. However, if U.S. economic performance remains on its present strong track, state tax revenues in fiscal 2005 (but not in 2004) would be substantially higher than the Foundation's projections.