Proportion of Tax Revenue Growth Since FY02 - Proportion of Total FY06 Tax Revenues

In fiscal year 2002, the Commonwealth used nearly $1 billion in reserves to cushion the impact of a severe, unexpected decline in tax revenues. The sharp tax revenue drop, almost 15% in one year alone, was the result of a major downturn in corporate tax revenues and capital gains taxes. Subsequently, over the past several years of robust tax revenue collections, the Commonwealth has replenished the Stabilization Fund to its highest level in history.