BOSTON — The first step in preparing the annual state budget involves projecting how much tax revenue the state expects to collect in the next fiscal year.

The revenue consensus hearing scheduled for Wednesday at the Statehouse may get more attention than it usually does. In each of the last two years, the agreed upon revenue projections wound up being overly optimistic and forced budget-writers in the Legislature to later adjust downward, by $650 million this year and $750 million a year ago.

That in turn led to spending cuts to keep the state’s roughly $40 billion budget in balance.

State officials and economists are expected to testify at the hearing.

Republican Gov. Charlie Baker will submit his proposed spending plan for the next fiscal year to the Legislature in January.