10th Annual Massachusetts Investor Conference slide image

10th Annual Massachusetts Investor Conference

SIGILLUM REIPUBL 12 . • • Financial Update • • Overview . Fiscal responsibility has been a cornerstone of the Baker-Polito Administration, and we are proud of the work that has been done over the last seven years to bring the budget into structural balance and build up reserves. A key budget objective has been working with the legislature to develop spending plans that sustain critical supports for the Commonwealth's communities, families, and workers, without losing sight of the need to keep spending in line with revenue growth. As a result, the Commonwealth was able to leverage existing resources - including significant federal aid to deliver critical services and tackle unprecedented challenges over the past 2 years, and still emerge from the pandemic on strong financial footing. The strength of the Commonwealth's financial position, will help the state manage economic volatility and ensure the continuity of vital government services in the long-term. Fiscal Year 2022 Review • At the end of fiscal year 2022, the state's budget stabilization fund balance stood at $6.9 billion a nearly 50% increase over the year's prior balance of $4.6 billion. The budget, as approved by the Governor on July 16, 2021, included approximately $47.6 billion in authorized spending, excluding transfers to the Medical Assistance Trust Fund, a $250 million supplemental transfer to the Pension Liability Fund, a one-time $350 million transfer to a new Student Opportunity Act Investment Fund, and other interfund transfers. It also incorporated an increased $34.350 billion tax revenue forecast before various tax initiatives, which represents an increase of $4.230 billion over the fiscal 2022 consensus tax revenue estimate of $30.120 billion announced in January 2021, due to better than-expected actual tax collections in recent months. ENSIS ASSACHUSE
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