Mass. revenue drop ‘worst in 50 years’

BOSTON – Tax revenue in Massachusetts fell far below the state’s already-pessimistic expectations for June, leaving the state with yet another unexpected budget shortfall, The Boston Globe reported today.

State revenue in June was nearly $260 million below forecast, leaving the state with a shortfall of roughly $180 million at the end of the fiscal year, despite multiple spending cuts over the course of the year, The Globe said. For the year, state revenue came in $3.2 billion below expectations.

“June is the final exclamation point on this unbelievably bad year,’’ Michael J. Widmer, president of the business-backed Massachusetts Taxpayers Foundation, told The Globe. “This is the worst year-to-year tax drop … in more than 50 years. Maybe ever.’’ He predicted the state will suffer four years of budget cuts.

Officials in Gov. Deval L. Patrick’s administration are preparing to analyze the figures and formulate a plan to make up for the deficit, the paper said. They may decide to tap the state’s rainy day fund, which has been drained from $2.1 billion a year ago to about $800 million now. Of that amount, more than $200 million already has been budgeted for the current fiscal year.

Patrick signed a $27 billion budget late last month that included roughly $1 billion in new taxes as well as spending cuts.