The Commonwealth of Massachusetts
Executive Office for
Administration and Finance
State House, Room 373
Boston, MA 02133

Deval L. Patrick, Governor
Timothy P. Murray, Lieutenant Governor
Leslie A. Kirwan, Secretary

October 15, 2008

TO:
The House Committee on Ways and Means
The Senate Committee on Ways and Means
The Joint Committee on Taxation
The Statutory Officers of the Commonwealth
The Secretary of Each Executive Office
The Commissioner of the Division of Capital Assets and Maintenance


In accordance with the provisions of the Massachusetts General Laws, Chapter 29, Section 5B, transmitted herewith is the Executive Office for Administration and Finance's estimate regarding available budgeted fund revenue for fiscal year 2009. Based on available data on revenues and economic trends, the revised tax revenue forecast for FY2009 is $20.302 billion. This represents a reduction of $1.1 billion from the 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. It should be noted that the $20.302 billion FY2009 estimate does not include approximately $100 million in additional FY2009 revenues that are expected to be received from tax case judgments and settlements, and will be accounted for separately. Actual tax receipts for FY2008 totaled $20.879 billion.

Due to the recent extraordinary turmoil in the financial markets and the uncertainty regarding its impact on the economy and revenues in FY2010, we have not yet developed a FY2010 revenue estimate. The FY2010 consensus revenue hearing, which will take place before the end of calendar year 2008, should yield greater clarity with respect to the direction of the economy and anticipated revenues in FY2010.

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. [See below.]

Sincerely,

Leslie A. Kirwan

Secretary




FY2008 Preliminary Actual Collections
and 10/15/2008 Executive Office for Administration and Finance
FY2009 Tax Revenue Estimates
(Dollar amounts are in millions)

All Funds*

General Fund

Highway Fund

SMART** Fund

MBTA

Other Funds

FY08 Prelim

FY09

FY08 Prelim

FY09

FY08 Prelim

FY09

FY08 Prelim

FY09

FY08 Prelim

FY09

FY08 Prelim

FY09

Alcoholic Beverages

71

72

71

72

-

-

-

-

-

-

-

-

Cig-arettes***

437

467

437

467

-

-

-

-

-

-

-

-

Corp-orations

1,512

1,561

1,512

1,561

-

-

-

-

-

-

-

-

Deeds

154

129

154

129

-

-

-

-

-

-

-

-

Estate Inheritance

254

230

254

230

-

-

-

-

-

-

-

-

Financial Institutions

548

242

548

242

-

-

-

-

-

-

-

-

Income

12,484

12,246

12,484

12,246

-

-

-

-

-

-

-

-

Insurance

396

404

396

404

-

-

-

-

-

-

-

-

Motor
Fuels

673

654

97

94

575

559

-

-

-

-

1

1

Public
Utilities

120

87

120

87

-

-

-

-

-

-

-

-

Room
Occupancy

119

120

77

78

-

-

-

-

-

-

42

42

Sales-
Regular

2,952

2,932

1,763

1,667

-

-

543

605

646

661

-

-

Sales-
Meals

633

660

633

660

-

-

-

-

-

-

-

-

Sales-Motor
Vehicles

502

473

300

269

-

-

92

98

110

107

-

-

Misc.

3

4

3

4

-

-

-

-

-

-

-

-

UI
Surcharges

22

21

-

-

-

-

-

-

-

-

22

21

Total
Taxes

20,879

20,302

18,849

18,210

575

559

635

702

756

767

64

64

* All figures include non-restricted and restricted budgeted revenues only, unless otherwise stated.

** School Modernization and Reconstruction Trust.

*** Excludes $174 million in cigarette tax revenues dedicated to the Commonwealth Care Trust Fund in FY2009





This information provided by the Executive Office of Administration and Finance.