Assessments
Ongoing charges to groups of customers of state services, such as local the municipal shares of MBTA costs that are deducted from direct local aid. 

Corporate Taxes
Payments from legally incorporated entities who conduct business in the state and whose earnings are subject to taxation.  The corporate rate is generally 9.5% of income and 0.26% of property value and net worth. The minimum tax per filing is currently $456.

Debt Service
The amount set aside annually in a fund to pay the interest and the part of the principal due on the Commonwealth’s bond and note debt.

Direct Local Aid
Funds provided to support local government services that are appropriated directly by the legislature. It represents aid distributed to cities and towns. It is comprised of about 28 appropriations administered by various state agencies.

Early Education and Care
The Massachusetts Department of Early Education and Care provides the foundation that supports all children in their development as lifelong learners and contributing members of the community, and supports families in their essential work as parents and caregivers.

Elementary and Secondary Education
The Department of Elementary and Secondary Education is charged with the responsibility of ensuring improved teaching and learning in all of the Commonwealth's public schools.

Energy and Environment
The Executive office of Energy and Environmental Affairs (EEA) oversees both environmental and energy agencies.  The agencies and offices of EEA also preserve land and open space, enforce pollution laws, review the environmental impact of major real estate and infrastructure developments, and provide opportunities for outdoor recreation Massachusetts parks and beaches.

Fees, Investment Earnings
Funds received by the state for services rendered, or income on invested money.

Federal Grants
Money provided by the US government to fund programs and activities that from the Commonwealth’s perspective are discretionary.

Federal Reimbursements
Funds provided to the Commonwealth to pay the US government’s participation for programs and activities delivered by the Commonwealth.

Group Health Insurance Budgeted Expenditure
Costs involved in providing insurance to eligible current state employees, retirees, and survivors.

Higher Education Budgeted Expenditure
State appropriated dollars for public higher education institutions in the Commonwealth, including community colleges, state colleges, and the University of Massachusetts system.

Income Tax
Citizen payments based on annual revenue received from personal work, investment income, rental property, etc.  Income Taxes are based largely on 5.3% of income and are defined by state law and DOR regulations.

Lottery Revenue
Proceeds from the Commonwealth’s lottery games available to fund prizes as well as state and municipal services.

Motor Vehicle Licenses and Registrations
Funds collected by the RMV from citizens for vehicle registrations, driver licenses, title changes, etc

Pensions
Funds paid to individuals whose age and years of public service meet the criteria specified in state law.  Expenditures include cash payments to retirees and amounts needed to fund the Commonwealth’s share of pension liabilities.

Public Assistance Budgeted Expenditure
Cash and other transitional and support services to families and individuals that meet defined financial eligibility criteria.  Expenditures reflect total expenses, some of which are funded by the federal government through reimbursements to the state.

Public Assistance Budgeted Expenditure
Cash and other transitional and support services to families and individuals that meet defined financial eligibility criteria.  Expenditures reflect total expenses, some of which are funded by the federal government through reimbursements to the state.

Public Safety
Primary objective of the Executive Office of Public Safety is the protection of persons and property.  The major sub-functions under public safety are police protection, fire protection, protective inspection, and correction.  It includes following departments:

Medicaid
Health coverage authorized in Title XIX of the Social Security Act for individuals and families who meet defined financial eligibility criteria.  Expenditures reflect total expenses, at least 50% of which is funded by the federal government through reimbursements to the state. Medicaid is the federal health program.

Sales and Use Tax
Sales and Use Tax is 5% of most goods purchased as defined by state law.  Use taxes are for out-of-state purchases made by in-state residents.  Meals taxes are also included here.  Portions of these funds are dedicated to fund the MBTA, school construction, and the convention centers.

Taxes
Money collected by the government and used to fund state operations.  Taxes include: Income, Sales and Use, Corporate, Motor Fuel, and other taxes from a variety of goods and services including: alcoholic beverages, certain banking transactions, cigarettes, income from estates, and hotel or room occupancy tax.. (Occupancy tax rates are set by legislation and used for various purposes.)