SUPPLEMENT DATED JUNE 14, 2016
TO
THE COMMONWEALTH OF MASSACHUSETTS
INFORMATION STATEMENT DATED MAY 24, 2016, AS
SUPPLEMENTED BY THE COMMONWEALTH INFORMATION
STATEMENT SUPPLEMENT DATED JUNE 6, 2016
The Commonwealth Information Statement dated May 24, 2016, as supplemented by the Commonwealth
Information Statement Supplement dated June 6, 2016, is amended as follows:
Under the heading “COMMONWEALTH REVENUES AND EXPENDITURES – State Taxes; Capital Gains Tax”
the second paragraph is replaced with the following paragraph:
The fiscal 2017 capital gains collections threshold has been determined to be approximately $1.128 billion.
The Governor’s budget recommendation filed on January 27, 2016 includes a section that requires the Comptroller
to transfer all capital gains tax collections that are above $1.278 billion to the Stabilization Fund in fiscal 2017.
Under the projections used in the consensus revenue forecast adopted by the Governor, House and Senate, this
section was projected to result in the transfer of approximately $206 million to the Stabilization Fund, consistent
with the fiscal 2017 consensus tax revenue estimate. As a result of the Commonwealth’s relatively slow filing
season in the spring of 2016, and after consulting with the Department of Revenue and with independent
economists, the Secretary of Administration and Finance now projects tax collections in fiscal 2017 to be between
$450 million and $750 million below the level projected in the consensus tax revenue forecast for fiscal 2017. See
“COMMONWEALTH REVENUES AND EXPENDITURES – Tax Revenue Forecasting.” Although capital gains tax
collections for fiscal 2017 have not been formally re-projected, a substantial reduction in such collections can be
expected in accordance with this lower projection for overall tax collections. The legislative conference committee
for the fiscal 2017 budget is currently determining conference budget provisions, which could result in a substantial
reduction in the projected transfer to the Stabilization Fund.
Under the heading “COMMONWEALTH REVENUES AND EXPENDITURES – Tax Revenue Forecasting,” the
following new paragraph is inserted after the fifth paragraph:
As a result of the Commonwealth’s relatively slow tax filing season in the spring of 2016, and after
consulting with the Department of Revenue and with independent economists, the Secretary of Administration and
Finance now projects tax collections in fiscal 2017 to be between $450 million and $750 million below the level
projected in the consensus tax revenue forecast for fiscal 2017.
Under the heading “COMMONWEALTH REVENUES AND EXPENDITURES – Fiscal 2015 and Fiscal 2016 Tax
Revenues; Fiscal 2016” the sixth paragraph is replaced with the following:
Massachusetts, like other similarly situated states, has experienced volatility in withholding and a softer
than anticipated spring filing season. Current projections indicate total tax revenue is expected to be approximately
$320 million to $370 million below revised benchmarks for fiscal 2016.
Under the heading “FISCAL 2016 AND FISCAL 2017 – Fiscal 2016” the tenth paragraph is replaced with the
following:

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 Massachusetts, like other similarly situated states, has experienced volatility in withholding taxes and a
softer than anticipated spring tax filing season. Preliminary tax revenue through May was $311 million below
projections, with shortfalls related primarily to lower than anticipated payments with returns and higher than
anticipated refunds. Estimated payments during calendar year 2016 have also been below revised benchmarks.
Current projections indicate total tax revenue is expected to be approximately $320 million to $370 million below
revised benchmarks for fiscal 2016. The Executive Office for Administration and Finance will continue to monitor
the Commonwealth’s fiscal condition and will actively manage the budget for the remainder of the fiscal year.
Actions in April, May and June include early imposition of restrictions on encumbrances, dissemination of guidance
to Executive Branch agencies restricting year-end spending, payroll caps, preparation for the transfer to the General
Fund of unneeded trust fund balances, acceleration of departmental and federal revenue collection, and close
attention to year-end reversions of unspent funds.
Under the heading “FISCAL 2016 AND FISCAL 2017 – Fiscal 2017” the following new paragraph is inserted
after the fourth paragraph:
As a result of the Commonwealth’s relatively slow tax filing season in the spring of 2016, and after
consulting with the Department of Revenue and with independent economists, the Secretary of Administration and
Finance now projects tax collections in fiscal 2017 to be between $450 million and $750 million below the level
projected in the consensus tax revenue forecast for fiscal 2017.

THE COMMONWEALTH OF MASSACHUSETTS

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