CHICOPEE, Mass. (WWLP) – Today marks the start of the new fiscal year. So why is the state budget still up in the air?
Low tax collections could create a budget shortfall of as much as a billion dollars in Massachusetts, meaning the proposed 2018 budget may need to be revised.
The House and the Senate have approved different versions of a roughly $40.3 billion dollar budget, but final agreements on the 2018 fiscal budget still need to be reached. A six member conference committee will continue negations, but in the meantime, Governor Charlie Baker filed a temporary five billion dollar budget to keep state services and government running for a few weeks. Part of the problem with passing the 2018 budget, is low tax collections. The original budget is created based off of predicted tax revenue, and a shortfall could leave a gap between the state’s spending and revenue.
A six member committee will meet to negotiate the two different budgets passed in the house and the senate before sending it to the governor for his signature.