Gov. Charlie Baker

Gov. Charlie Baker announced the state's Rainy Day Fund will be reaching an all-time high.

(The Center Square) – With higher-than-expected tax revenues filling state coffers, Gov. Charlie Baker said the Bay State is planning for rainy days.

The governor said Thursday afternoon that Massachusetts’s Rainy Day Fund is poised to reach a record $6.6 billion. Baker made the announcement on the heels of a letter he received from Department of Revenue Commissioner Geoffrey E. Snyder to state Comptroller William J. McNamara pertaining to the state’s tax revenue collection efforts.

Baker tweeted that as “Tax revenues continue to come in much higher than expected” and that the “latest capital gains transfer” the fund would reach a new all-time high.

“With MA families facing high prices, it's time to give some of the surplus back by passing our $700 million tax cut plan,” Baker said in the tweet.

Snyder, who is required under law to verify quarterly revenues received by the Department of Revenue, said in the letter that the state has collected $510.58 million from July 1 to Sept. 30, 2021, $705.65 million from Oct. 1, 2021, to Jan. 31, 2022, and an additional $2.298.12 million from Feb. 1 to May 31.

The revenue commissioner wrote that capital gains tax revenue collections totals were anticipated to reach $1.251.91 million in fiscal year 2022 and that 90% was transferred to the Commonwealth Stabilization Fund, 5% to the State Retiree Benefits Trust Fund, and 5% to the state’s Pension Liability Fund.

Snyder, according to the letter, said that $2.162.44 million would be transferred to those funds.

“This $1.9 billion Rainy Day Fund deposit shows MA is in extremely strong financial shape,” Baker tweeted. “Our tax cut plan is affordable and the right thing to do. We hope our partners in the Legislature will join us to deliver meaningful relief for working families.”

Associate Editor

Brent Addleman is an Associate Editor and a veteran journalist with more than 25 years of experience. He has served as editor of newspapers in Pennsylvania and Texas, and has also worked at newspapers in Delaware, Maryland, New York, and Kentucky.