10th Annual Massachusetts Investor Conference
Fiscal Year 2023 Budget (cont.)
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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:
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$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
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• $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.
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