Massachusetts Can Now Borrow Billions to Close Budget Gap

Massachusetts will soon be able to borrow billions of dollars to close its budget gap.

A bill (H. 4677) signed Friday by Gov. Charlie Baker (R), authorizes the state treasurer to borrow as needed through June 30, the end of the fiscal year, to fill the gap caused by the extension of the state income tax filing deadline to July 15. Any loans must be repaid by June 30, 2021.

• The amount borrowed could top $2 billion, officials say. Revenue collections for April were $2.168 billion, or 52.2% below, what the state had set as its April benchmark, the Massachusetts Department of Revenue said May 5.
• The bill “will help the Commonwealth responsibly meet near-term budget challenges as we continue to address the impacts of Covid-19,” Sen. Karen Spilka (D), president of the Senate, said May 14.