10th Annual Massachusetts Investor Conference slide image

10th Annual Massachusetts Investor Conference

Fiscal Year 2023 Budget (cont.) • • • The fiscal 2023 budget, as approved by the Governor on July 28, 2022, includes approximately $52.7 billion in authorized spending, excluding transfers to the Medical Assistance Trust Fund. It also incorporates an increased $39.576 billion tax revenue forecast before various tax initiatives, which represents an increase of $2.660 billion over the fiscal 2023 consensus tax revenue estimate of $36.915 billion announced in January 2022, due to better than-expected actual tax collections in recent months. This reflects approximately 9.3% growth in authorized spending over fiscal 2022. The revenue upgrade incorporated into the budget supports a number of substantial one-time transfers and reserves in FY23, including: • • • $266 million reserve to support MBTA safety and workforce initiatives $175 million transfer to a new trust fund dedicated to supporting high-quality early education & care $150 million transfer to the Student Opportunity Act Investment Fund $100 million supplemental transfer to the Commonwealth's Pension Liability Fund • • • $100 million transfer to the State Retiree Benefits Trust Fund The fiscal 2023 budget as enacted sets aside $315 million for future tax reductions, and is in structural balance, with no planned Stabilization Fund withdrawal. As enacted, the budget anticipates a deposit into the Stabilization Fund of nearly $1.5 billion, which would increase the balance of the fund from an already historic high of $6.9 billion to $8.4 billion. This would represent a $7.3 billion increase in the balance of the Stabilization Fund since the Baker-Polito Administration came into office in 2015. • 15 SIGILLUM REIPUBLICE
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