Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2012

Governor's Budget Recommendation FY 2012

Non-Tax Revenue Development


Fiscal Year 2012 Non-Tax Revenue Assumptions

The Commonwealth collects and receives revenues from several non-tax sources, including the federal government, various fees, fines, court revenues, assessments, reimbursements, interest earnings and transfers from non-budgeted funds. These revenues are deposited in the General Fund, the Commonwealth Transportation Fund and other operating budgeted funds. The Governor’s fiscal year 2012 budget recommendation assumes approximately $12.65 billion in non-tax revenues.  Reimbursements from the federal government make up 62% of the Commonwealth’s non-tax revenue.  The remaining non-tax revenues come from departmental revenues (23%) and operating transfers to fund programs and services off budget (15%).  Sections 1B and 1C of this document details the different types of non-tax revenues.

House 1 Total Non-Tax Revenues: $12.647 Billion (in $ Billions) Pie chart showing Federal Reimbursements is the largest portion with 7.748 billion dollars.  Consolidated Transfers 1.935 billion dollars.  Departmental Revenue 2.964 billion dollars.

Federal Revenues

Federal revenues are collected through reimbursements for the federal share of entitlement programs such as Medicaid and through block grants for programs such as Temporary Assistance for Needy Families (TANF) and Child Support Enforcement. The amount of federal reimbursements to be received is determined by state expenditures and federal regulations that govern federal programs.  Staff from the Executive Office for Administration and Finance work with agencies to project budget year spending levels for these federally supported programs.

Departmental Revenues

Departmental revenues are derived from licenses, tuition, fees for programs and services, reimbursements and assessments for services including, but not limited to, revenues from the Registry of Motor Vehicles, reimbursement of healthcare costs from municipalities participating in the state’s Group Insurance Commission (GIC) health care programs, drug rebate money received by the Executive Office of Health and Human Services, interest earnings received on the state’s budgeted fund balances and fees collected by the Secretary of State’s Office.  To the extent possible, the Administration has minimized fee increases.  However, MGL Chapter 7 Section 3B provides for an annual review of fees to confirm that they are sufficient to defray the cost of providing the service. As part of this exercise, the Executive Office for Administration and Finance analyzes historical non-tax revenue receipts and works with agencies to develop budget-year projections for these revenues. During the budget process, agencies are asked to review the fees to ensure they are current and reflect the actual cost of doing business.

As mentioned above, H.1 includes two sections that give a detailed overview of projected non-tax revenue for fiscal year 2012. Section 1B details projected fiscal year 2012 non-tax revenue receipts by the department, board, commission or institution that administers and collects the respective revenue source. The online version of H.1 allows the user to further examine each governmental area and view a title and description of each revenue source contributing to that area’s total non-tax revenue.  Additionally, the fund statements which are included in the “Financial Statements” section of the budget document offer another view of departmental revenues by operating fund.

Consolidated Transfers

Consolidated transfers reflect inflows to the General Fund from non-budgeted funds which include annual tobacco settlement proceeds received as part of the Master Settlement Agreement with tobacco companies, net revenues from the State Lottery Fund, fringe revenue to recoup the cost of various statewide benefits assessed on non-budgeted funds and revenues from the Commonwealth’s Abandoned Property Division.  The Executive Office for Administration and Finance solicits agency feedback and uses historical data to project transfers to and from the budgeted funds for the proposed budget year.  Section 1C of this document provides further detail behind this revenue type.


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