Greeting friends;

FYI, tax revenues are rolling in at record-setting rates,
over-flowing the state coffers -- but still no relief for
overburdened Bay State taxpayers!

Chip Ford,
Co-director

* * *

Boston Globe
Friday, May 2, 1997
Page One

Economy boosts Mass. tax revenues
April collections rise by $400m
By Charles Stein
Globe Staff

A surging economy gave the state an unexpected gift in
April: a huge increase in tax receipts.

Revenue Commissioner Mitchell Adams said yesterday that
Massachusetts took in $1.4 billion in April, almost 40 percent
more than it collected in April 1996. Roughly half the
increase, or $200 million, was the result of faster processing
of tax claims. But the other half, say analysts, came from a
combination of a strong economy and a booming stock market.
[ . . . ]
The tax bonus all but guarantees the state will end the
fiscal year in June with a substantial budget surplus -- around
$400 million, predict some tax specialists. Much of the extra
money is likely to go into an expanded "rainy day"
[stabilization] fund for the future. Money could also be
allocated to pay down some of the state's substantial debts,
say legislative sources.
[ . . . ]
The state's tax receipts have been reflecting the solid
economy all year long. Through the first 10 months of the
fiscal year, sales tax receipts are running 11.7 percent ahead
of last year's pace. Through the first nine months of the year,
receipts from the sales tax on cars are up 14.6 percent.

The Weld administration and legislative leaders have
tentatively agreed to put more money into the "rainy day"
fund. Currently the fund is capped at about $550 million. The
new plan would raise the cap to about $850 million.