Section 5B Estimates of total revenue and tax expenditures; consensus tax revenue forecast
Section 5B. The commissioner, with the approval of the governor, shall on or before both October 15 and March fifteenth of every year, prepare estimates of the total state revenues and total allowable state tax revenues as defined in chapter twenty-nine B which in his judgment will be available for the annual budget for the ensuing fiscal year. In making such estimates he shall take into account the computed maximum state tax revenues as defined in chapter twenty-nine B, the impact of existing taxes, the probable economic growth within the state, anticipated federal fund receipts, the anticipated growth in wages and salaries, departmental and other revenue based on existing laws, and amounts available to be transferred into budgetary funds.
In estimating revenues available for the current year, he shall include the amount certified by the comptroller under the provisions of section five C as available from the consolidated net surplus in the operating funds at the close of the preceding fiscal year and not in excess of one-half of one per cent of the total state tax revenues in such fiscal year. In estimating revenues to be available for the annual budget for the ensuing fiscal year, he shall include an amount of any anticipated consolidated net surplus in operating funds not in excess of one-half of one per cent of the estimated total state tax revenues for the current fiscal year.
The commissioner, with the approval of the governor, shall annually on or before December fifteenth, prepare estimates of the tax expenditures which in his judgment will occur during the ensuing fiscal year. Such estimates of tax expenditures shall be prepared to facilitate a comparison of increases or decreases from actual collections of the preceding fiscal year the estimates of such revenue for the then current fiscal year.
The commissioner shall transmit the estimates of total state revenue and the estimates of tax expenditures to the commissioner of capital asset management and maintenance, to every secretary, to every statutory officer of the commonwealth, who shall transmit to each subordinate agency such of the information which each such officer or secretary determines is appropriate to assist each such agency in its budget preparations, to the house and senate committees on ways and means, and to the joint committee on taxation.
Said secretaries shall identify any new program approved by them that will require additional revenue.
On or before October fifteenth, January fifteenth and April fifteenth, said commissioner, shall prepare and submit to the governor, to the house and senate committees on ways and means, and to the joint committee on taxation revised estimates of revenue available to meet appropriations and other needs in the current fiscal year, unless, in his opinion, no significant change in his previous estimates of total available revenues is indicated by information then available to him, and he shall accompany his revised estimates with explanations of any changes in his estimates for specific sources of revenue. Any revision of the revenue estimate made by the commissioner shall be published and made available to the general public in a conspicuous manner on the commonwealth’s official website within 14 days of submission of such revisions to the governor.
In accordance with section twenty-one of chapter sixty-two C, the commissioner of revenue shall provide the commissioner of administration the data necessary to estimate tax expenditures.
On or before January 15, the commissioner shall meet with the house and senate committees on ways and means and shall jointly develop a consensus tax revenue forecast for the budget for the ensuing fiscal year which shall be agreed to by the commissioner and said committees. In developing such a consensus tax revenue forecast, the commissioner and said committees, or subcommittees of said committees, are hereby authorized to hold joint hearings on the economy of the commonwealth and its impact on tax revenue forecasts; provided, however, that in the first year of the term of office of a governor who has not served in the preceding year, said parties shall agree to the consensus tax revenue forecast not later than January 31 of said year. Said consensus tax estimate shall be net of the amount necessary to transfer, from the General Fund to the Commonwealth’s Pension Liability Fund, to fully fund the system according to the schedule established pursuant to paragraph (1) of section 22C of chapter 32. Said consensus tax estimate shall also include an estimate of taxes collected pursuant to chapter 62 for capital gain income, as defined therein. The department of revenue shall report on a monthly basis to the house and senate committees on ways and means and the joint committee on taxation the amount of revenues estimated to be collected in that month from capital gains income. Said consensus tax revenue forecast shall be included in a joint resolution and placed before the members of the general court for their consideration. Such joint resolution, if passed by both branches of the general court, shall establish the maximum amount of tax revenue which may be considered for the general appropriation act for the ensuing fiscal year.