Once again, the state last month collected far more capital gains and millionaire-surtax revenue than projected, leaving state officials with the pleasant dilemma of what to do with the extra surtax money in particular, as the Globe’s Matt Stout reports. Allocate the funds right away to their intended purposes as stipulated by referendum voters in 2022, i.e. to education and transportation? … Here’s a better idea considering all the storm clouds on the horizon: set the money aside in some sort of special account till we learn more about A.) possible/probable federal funding cuts in those two areas and B.) where the economy is headed amid all the tariff turmoil. … Believe it or not (and it’s not that hard to believe), the same surge in tax revenues happened in April 2024 – and yet the state spent itself into deficit. With even more uncertainties these days, the state may yet run up another deficit this fiscal year and next fiscal year and … they need to set aside money where and when they can. Not that they’re capable of doing so where and when they should.

And, btw, they also need to resist earmarking surtax money for pet parking-garage projects in Quincy.  … And, btw II, lawmakers better not raise taxes, not with the state awash in money, albeit money that has strings attached. Senate president Karen Spilka is vowing not to hike taxes.

Update – 5.7.25 – More looming concerns out there, from GBH: “Medicaid funding fears loom over Massachusetts state budget.”

Update II – 5.7.25 – And from MassLive: “‘All bets are off’ if Trump cuts Medicaid, Mass. Senate budget boss warns.”