What are the major sources of revenue that support budgeted expenditures?

Taxes, fees, lottery profits and grants from the federal government comprise the bulk of the available revenue for budgeting. 

  

2007 Sources for Budgeted Funds    
Taxes   18,444,891 64.5%
Federal reimbursements    6,167,575 21.6%
Departmental and other revenues (esp. fees and charges) 2,218,414 7.8%
Interfund transfers from non-budgeted funds and other sources (includes lottery) 1,785,002 6.2%
   Total budgeted revenues and other sources of funds 28,615,882 100.0%

 Source:  Page 7 of Statutory Basis Financial Report.

 The income tax accounts for almost 2/3 of state tax revenues.

FY2007 Tax Revenues Type of Fund that Receives Revenue
  Budgeted (1) % of Budgeted Other (2) Total
     Alcoholic Beverages 70,958,257 0.4%   70,958,257    
     Alcoholic Beverages – Club 770,024 0.0%   770,024    
     Cigarettes 438,074,148 2.4%   438,074,148    
     Deeds 140,824,781 0.8%   140,824,781    
     Motor Fuels 676,119,121 3.7%   676,119,121    
         Sales — Regular 1,738,039,710 9.4%   1,738,039,710    
         Sales — Services 147,471,559 0.8%   147,471,559    
         Sales — Meals 608,662,364 3.3%   608,662,364    
         Sales — Motor Vehicles 342,005,124 1.9%   342,005,124    
     Sales Tax — Total 2,836,178,757 15.4%     1,239,370,249 4,075,549,006
     Other (3) 74,100 0.0% 43,825,251 43,899,351    
     Room Occupancy 111,087,290 0.6% 46427614 157,514,904    
          All Consumption Taxes 4,274,086,478 23.2% 1,329,623,114 5,603,709,592
Business Taxes            
    Banks 340,936,924 1.9%   340,936,924    
    Corporations 1,587,636,140 8.6%   1,587,636,140    
    Insurance 369,030,296 2.0%   369,030,296    
    Public Utilities 178,324,574 1.0%   178,324,574    
         All Business Taxes 2,475,927,934 13.5%   2,475,927,934    
Income/Wealth            
     Estate & Inheritance 249,596,703 1.4%   249,596,703    
     Income 11,399,648,548 62.0%   11,399,648,548    
          All Income/Wealth Taxes 11,649,245,251 63.3% 11,649,245,251
Total DOR Reported Taxes (4) 18,399,259,663 100.0% 1,329,623,114 19,728,882,777
(1) Budgeted Funds include:  General Fund, Highway Fund, Stabilization Fund, Inland Fisheries and Game Fund, Mass. Tourism Fund
(2) Other Funds include:  Convention Center Fund, MBTA Contribution, School Modernization Fund, Community Preservation Fund
(3) Other Revenues primarily include: Convention Center Surcharges and Community Preservation Surcharges deposited into those non-budgeted funds.
(4) Taxes for budgeted funds that are not reported through Department of Revenue include the UI Surcharge for Workforce Development ($21.5 million) 
     and miscellaneous other very small revenue sources.          

 

 

 Source:  Analysis of June 2007 Department of Revenue “Blue Book” and related information from Statutory Basis Financial Report.

 Medicaid accounts for roughly 60% of budgeted federal reimbursements.  

 Major health health and welfare programs account for much of the rest — including for example, Temporary Assistance to Needy Families and the Social Services Block Grant. 

 Additional major federal programs — Highway Construction funding, major local education assistance programs ( Title I, Special Education, School lunch), Section 8 Vouchers —  do not, for the most part, flow through the budgeted funds.

 The state receives over 300 additional minor categories of federal assistance.

 Federal reimbursement numbers are not broken out in detail in the main financial reports of the state.  There is a single audit report which includes a list of all federal grant programs, but it does not classify the programs on a state fund basis.

 Lottery distributions totalled $1 billion in FY2007, including distributions for the arts.

Published by Will Brownsberger

Will Brownsberger is State Senator from the Second Suffolk and Middlesex District.