BOSTON (WWLP) – The month of January is a significant month when it comes to state tax collections, but the past few months have seen a downturn in collections.
Every month this fiscal year has fallen behind the benchmark, and the month of January is no outlier. The most recent figures show this month got off to a tough start. Last month’s numbers were the nail in the coffin when it came to whether or not the state should make budget cuts.
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December marked the halfway point through this fiscal year, and by last month, the state collected $769 million or 4.1 percent less tax revenue than projections. The shortfall up to December totaled $1 billion which led to $375 million in spending cuts.
The largest reduction was to MassHealth with a gross cut of $294 million. However, no resident in western Massachusetts will lose their eligibility.
As for this month, which is usually the fourth largest revenue month of the year, the state fell behind again. Halfway through the month, tax collections took in $208 million less than what the state took in during the same period in January of last year.