As we close the books on Fiscal Year 2010, I am pleased to note that we ended the year with a surplus of $163.3 million.

Today, I confirmed that $50 million of originally budgeted stabilization funds will not be used in FY10, and will remain in the Rainy Day Fund. We will meet our statutory obligation to carry forward into Fiscal Year 2011 $94 million of unallocated reserves. We will fund Governor Patrick's Life Sciences Initiative at $10 million and will deposit the remaining $9.4 million to shore up our Rainy Day Fund, as we continue on the path towards economic recovery. These actions are made possible thanks to the Governor's responsible fiscal leadership and the spending controls he put in place actively managed. These actions are also looked upon favorably by the financial community, which has continuously affirmed our responsible fiscal management through our credit ratings. At this time, our FY11 budget does not rely on any state reserves to support this year's expenditures.

We are optimistic about our economic recovery and continue to see signs of strength. Year to date, our tax revenue collections are more than $200 million over estimates. While still too early to draw conclusions about where we will end October, mid-month tax collections are consistent with recent trends of better-than-projected tax revenues. This is particularly true of tax categories that reflect current economic performance, namely income tax withholding and corporate/business tax payments. These mid-month results continue to bode well for our economic recovery and for the state's fiscal stability.

While Fiscal Year 2012 will be a challenging year, these indicators are affirmation that we are well on our way to a faster and stronger recovery.