State tax revenues keep heading higher
Mass. already challenged in spending billions in federal aid
State tax collections kept humming along in November, with revenues coming in nearly 14 percent above last year and nearly 9 percent over the projections on which this year’s budget was based.
For the first five months of the fiscal year, revenues were $2.1 billion higher than they were in the same period last year and $914 million, or 7.2 percent, more than projected.
Officials said the gushing state revenues reflect increases in tax income across the board, but they cautioned to not read too much into the numbers given that November is often a small month for revenue collections and Massachusetts hasn’t quite reached the halfway mark in the fiscal year yet.Still, the trendlines are extremely positive and the upward movement in revenues comes at a time that massive amounts of funds are flowing into the state from the federal government. The amounts are so big that state officials are having difficulty deciding what to do with it.
The heavy inflow of cash may pose problems for backers of a constitutional amendment that heads to the ballot next year. The amendment would impose an income tax surcharge on people earning more than $1 million a year.