BHI Forecast Update: State tax revenues to increase by 2.1% in FY 2010 and by 4.4%
in FY 2011
(BOSTON, Dec. 16, 2009) – After examining the state’s slide into a recession and the prospects for recovery, The Beacon Hill Institute at Suffolk University (BHI) will release its revised forecast of Massachusetts state tax revenues for fiscal year FY2010 and a new forecast for FY2011.
The Institute’s forecasts for state tax revenues are:
For FY 2010 (ending June 30, 2010): $18.636 billion, representing an increase of 2.1% from FY 2009; and
For FY 2011 (ending June 30, 2011): $19.457 billion, representing an increase of 4.4% over the estimated FY 2010.
The Institute estimates that while net income tax collections for FY 2010, the current year, will fall by 4.7% they will rebound by 5.5% in FY 2011. It also estimates that sales tax collections (which include revenues from the recent tax increase) will close out the fiscal year up by 8.4% and grow by 6.1% in FY 2011. Corporate excise tax collections are estimated to grow by 4.2% in FY 2010 and 2.6% in FY 2011. Press release.
Full forecast at http://www.beaconhill.org/Reve…
Hoping for the best, but planning for the worst especially as it pertains to local aid and Chapter 70.
that this news, along with the relatively positive Massachusetts economic indicators over the past couple months, is the definitive counter to conservative attacks that the sales tax increase would destroy the Massachusetts economy. If this increase hadn’t been in place, tax revenues would be considerably lower and we’d be talking about even more drastic cuts in local aid then we’re already likely to be facing.