The Massachusetts economy is humming along. The unemployment rate fell to 3.9 percent in August, its lowest level since 2001. But state tax revenues are not keeping pace. They fell so far behind the level that had been forecasted that the Baker administration is now trying to clean up a $575 million budget shortfall from the previous fiscal year.
What’s going on? We explore that issue with Eileen McAnneny, president of the Massachusetts Taxpayers Foundation, and Alan Clayton-Matthews, an associate professor at Northeastern University. Both of them conduct state revenue forecasts and work with state officials to develop a consensus forecast.
