Massachusetts

The Massachusetts budget is prepared by the Executive Office of Administration and Finance and is presented by the governor to the legislature for revision and approval. The fiscal year runs from 1 July to 30 June.

From 1990 to 2000, tax reductions totaling an annual $3.6 billion had been enacted, and in the 2000 election, voters mandated a rollback in the income tax rate to 5% by 2003. Total fiscal year 2001 revenues were projected to be $21.3 billion. Actual general fund revenues overshot this, at $22.867 billion, which comfortably covered expenditures of $22.141 billion, but in 2002/03, revenues fell back to $22.68 billion while expenditures rose to $22.8 billion. In 2002/03, general fund revenues fell further, to $22.022 billion. Massachusetts's budget deficit for 2002/03 was estimated at a relatively mild 2.6% of the state budget, but projections for 2003/04 are for a budget deficit equal to 11% of the budget. In 2000/01, the state's starting balance was equal to 13.6% of expenditures; by 2002/03, the starting balance equaled only 1.4% of expenditures.

The following table from the US Census Bureau contains information on revenues, expenditures, indebtedness, and cash/securities for 2001.