TO: His Excellency Deval L. Patrick, Governor
The House Committee on Ways and Means
The Senate Committee on Ways and Means
The Joint Committee on Revenue
In accordance with the Massachusetts General Laws, Chapter 29, Section 5B, I am transmitting the Executive Office for Administration and Finance's revised estimate of available budgeted fund revenue for fiscal year 2009. Based on available data on revenues and economic trends, the further revised tax revenue forecast for fiscal year 2009 is $19.450 billion including one-time corporate revenue received through December. This represents a reduction of $1.95 billion from the original revenue estimate assumed in the fiscal year 2009 General Appropriations Act, which was based on the January 2008 consensus revenue estimate adjusted for subsequent tax law changes.
In the letter I submitted to you on October 15, 2008 I revised the original fiscal year 2009 revenue estimate of $21.402 billion downward to $20.302 billion. Today's revised estimate represents a further reduction of $952 million from the $20.302 billion estimate not including the approximately $100 million in one-time corporate revenue received in December. This revenue was assumed in Governor Patrick's fiscal action plan released this past October to address the then estimated $1.4 billion budget deficit.
In accord with previously released figures, the revenue estimates exclude amounts earmarked for the Convention Center, but include off-budget allocations to MBTA forward funding, pension obligations, and school building assistance payments. The estimates also exclude new cigarette tax revenues dedicated to the off-budget Commonwealth Care Trust Fund.
Detailed revenue and fund tables are attached.
Leslie A. Kirwan