(The Center Square) – An extraordinary influx of federal funding and tax revenue collection has Massachusetts standing on firm ground, a new report shows.
Comptroller William McNamara released the Statutory Basis Financial Report for fiscal year 2022, which ended on June 30. The report shows the state has a net surplus of $4.812 billion in budgeted funds that have been undesignated or placed in unreserved balances under the state’s appropriations process.
“The filing of the Statutory Basis Financial Report reflects diligent work by Office of the Comptroller staff and our partners throughout state government,” McNamara said in a release. “Collaboration from professionals throughout the Commonwealth of Massachusetts has produced this financial report that will inform policymakers, bondholders, and the public on the health of the Commonwealth’s finances.”
The report focuses on budgeted funds for the state and highlights revenue and spending that is influenced by federal funding and tax revenue generation in Massachusetts.
According to the report, the state had $6.101 billion in budgeted funds for fiscal year 2022 and had budgeted $7.801 billion the previous year. Plus, budget tax fund revenue was set at $38.587 billion, an increase of 21.5% from the previous year and $6.383 billion above estimates for fiscal year 2022.
The report illustrates a 24.1% increase in personal income tax collections to $24.336 billion during the fiscal year, which exceeded the allowable limit by $2.941 billion. That funding is in the process of being returned to state taxpayers in fiscal year 2023.
According to the report, a total of $15.779 billion in federal reimbursements were received by the state, which was a $2.560 billion decrease from fiscal year 2021. Meanwhile, there was a net increase of $2.311 billion added to the rainy day fund, which, as of the end of the fiscal year, stood at $6.938 billion.
The report shows that the fund balance in the stabilization fund as a percentage of the general fund stands at 16.9%, coming in above the 11.4% national median.