Secretary of Administration and Finance Matthew Gorzkowicz, Senate Ways and Means Chair Michael Rodrigues, and House Ways and Means Chair Aaron Michlewitz convened the annual Fiscal Year 2027 (FY27) Consensus Revenue Hearing at the State House on December 15, 2025, officially launching the FY2027 (FY27) Massachusetts budget process.
Pursuant to state law, the Executive and Legislative branches meet annually to establish a joint revenue forecast that serves as the foundation for the Governor’s FY27 budget proposal (House 2), as well as the subsequent House and Senate budget recommendations. The forecast is informed by testimony presented during the public hearing by the Department of Revenue, the State Treasurer’s Office, and independent economists from local foundations and universities. At the hearing, Massachusetts Department of Revenue (DoR)Commissioner Geoffrey Snyder told lawmakers that his agency expects tax revenue growth in fiscal 2027 of between 1.7% and 3.1%. The Chairmen of the Ways and Means Committees also commented on a ballot initiative that would reduce the state’s personal income tax from 5% to 4% over three years, with a potential revenue reduction estimated at $4.2 billion to $4.8 billion, according to the DoR.
This year’s revenue outlook comes amid significant fiscal challenges for the Commonwealth, including approximately $3.5 billion in federal health care reductions once OB3 comes fully into effect and a projected $1.4 billion Medicaid budget shortfall.