While lawmakers still haven’t decided how to allocate the fiscal 2018 surplus, Massachusetts taxpayers continue to deliver revenue to Beacon Hill at levels higher than state government leaders forecast.
The Department of Revenue released August data on Thursday showing that tax collections over the first two months of fiscal 2019 are running $233 million, or 6.6 percent over the same period in fiscal 2018. The $3.74 billion in tax collections during July and August are also running $53 million ahead of the benchmarks that Gov. Charlie Baker and the Legislature used to assemble the fiscal 2019 budget.
August tax collections of $1.843 billion were $131 million, or 7.6 percent, above August 2017 collections, and $46 million above benchmark. In all, tax collections for fiscal 2018 exceeded original expectations by about $1.1 billion.
Most of the unexpected revenue was used to cover unbudgeted expenses or deposited into the rainy-day fund, but a substantial surplus of $150 million to $200 million remains unallocated.