State budget writers to hold revenue hearing on Dec. 4

The fiscal 2025 state budget process will begin in earnest on Dec. 4 with the annual hearing where the Department of Revenue and other fiscal experts and economists discuss the prospects for the economy and state revenue over the second half of the current fiscal year and in the fiscal year to come.

The consensus revenue hearing, convened by the governor’s budget team and the House and Senate Ways and Means committees, will start at 1 p.m. 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 agreement on a tax revenue forecast for fiscal 2025 that will be used in the governor’s budget recommendation, which is due to be filed in January, and the House and Senate budget plans, which are customarily released in April and May, respectively.

The hearing is important for municipal officials because it provides insights into the direction of the economy and anticipated state revenue available to fund municipal and school aid programs next year, particularly Unrestricted General Government Aid.

Through almost the midpoint of fiscal 2024, state tax collections have been falling below expectations. On Nov. 3, the Department of Revenue announced that year-to-date tax collections for fiscal 2024 totaled approximately $11.84 billion, which is 2.9% less than the year-to-date benchmark.