Thursday, January 3, 2019

"slowdown in natural revenue growth"

From the Milford Daily News, articles of interest for Franklin:

FY 2020 Budget Revenue Assumption Set

"State budget writers agreed this week to build their fiscal 2020 budget plans on the assumption that state tax revenues will grow by 2.7 percent over the current fiscal year. 
Gov. Charlie Baker’s budget chief and leaders of the House and Senate Ways and Means committees detailed a finalized accord on how much tax revenue the state expects to collect in fiscal 2020, which begins July 1. Budget watchers also upgraded their expectations for tax revenue in fiscal 2019, upping the projected total revenue by $200 million, to $28.529 billion. 
The estimate of $29.299 billion in tax revenues for fiscal 2020 amounts to $770 million more in revenue than the updated projection for the current fiscal year. The projected growth rate will serve as the basis for Baker’s budget, which is due on Jan. 23, and budget-building exercises this spring and summer in the House and Senate."
Continue reading the article online (subscription may be required)

Franklin depends upon State funding for its budget. Funding for schools, local aid and roads account for approx 30% of the total Franklin budget. Getting a reasonable estimate of this funding from the State enables Franklin to start its own budget cycle for FY 2020.

The State budget cycle for FY 2019 (the current budget) is shown here. The steps are the same for the new budget cycle for FY 2020.

State budget cycle for FY 2019
State budget cycle for FY 2019

The Franklin budget cycle is shown here

Franklin budget cycle
Franklin budget cycle
For more info on the Franklin budget cycle or process

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