State budget writers to hold revenue hearing on Dec. 16

The fiscal 2027 state budget process will begin in earnest on Dec. 16 at the annual consensus revenue hearing, when the Department of Revenue and other fiscal experts will discuss the prospects for the economy and state revenue over the second half of the current fiscal year and for the upcoming year.

The hearing, convened by the governor’s budget team and the House and Senate Ways and Means committees, will start at noon and be held in Gardner Auditorium at the State House, with streaming for the public and press available through the Legislature’s website.

Following the hearing, legislative leaders and the administration will reach an agreement on a tax revenue forecast for fiscal 2027 that will be used in the governor’s budget recommendation (known as House 2), which is due to be filed in January, and the House and Senate budget plans, customarily released in April and May, respectively.

The hearing is important for municipal officials due to the timely insights into the direction of the economy and anticipated state revenue available to critical municipal and school aid programs.

Almost halfway through fiscal 2026, the Department of Revenue recently announced preliminary revenue collections through November. Year-to-date collections total approximately $15.6 billion, which is 4.4% higher than actual collections in the same period of fiscal 2025, and 1.2% above the year-to-date benchmark established in the fiscal 2026 state budget process.

The tax revenue snapshot comes as the Commonwealth continues to assess the fiscal impact from recent federal policy changes as well as the state of the Commonwealth’s economy.