Beacon Hill Institute staff testified before the Joint Committee on Ways and Means at the Massachusetts State House, presenting research that predicts that Massachusetts state tax revenues will come in at an estimated $21.113 billion for Fiscal Year 2013, virtually no increase over FY 2012.
Revenues will be $22.194 billion for FY 2014, according to the research, 5.1 percent above FY 2013.
Paul Bachman, director of research for the Beacon Hill Institute, and David G. Tuerck, the Institute's executive director and chair of Economics at Suffolk University, presented the Massachusetts Tax Revenue Forecasts for FY 2013 and FY 2014.
The Legislature uses the Beacon Hill Institute estimate, along with estimates provided by other groups, to help determine the revenues needed for the upcoming state budget.
Total tax revenues for FY 2012 closed out at $21.115 billion, and FY 2013 revenues are not expected to exceed that amount.
“Massachusetts is going through a soft patch but state revenue collections will be returning to healthier trends,” said Tuerck. “Tax revenues will be flat in FY 2013, but the state will see a nice bounce in FY 2014, led by strong personal income tax revenue and positive corporate tax revenue growth.”
FY 2014 revenues will be much improved, growing 5.1 percent over 2013, based on the New England Economic Partnership forecast of strong growth of employment and personal income over the next two years.