SENATE, No. 2081

Communication from the Board of Trustees of the Health Care Security Trust (under the provisions of Section 4(h) of Chapter 29D of the General Laws) submitting its proposed operating budget for fiscal year 2006. Health Care Finance.

The Commonwealth of Massachusetts

Seal of the Commonwealth of Massachusetts

In the Year Two Thousand and Five.

Sumner B. Tilton, Jr., Chairman

Paul Todisco

Martin Begien

Executive Director

John R. Jenkins

(617) 946-8423

Renée M. Landers, Esq

Paul.Todisco@state.ma.us

Thomas H. Luster  
William J. Supple  

June 2, 2005

William Welch
Clerk of the Senate
State House, Room 335
Boston, MA  02133

RE: FY 2006 Budget Filing For the Health Care Security Trust Fund

To the Honorable William Welch:

I am submitting the attached budget pursuant to Massachusetts General Laws Chapter 29D, Section 4 (h).  At their June 2, 2005 meeting, the Board of Trustees unanimously approved an Operating Budget of $3,939,174 for fiscal year 2006.  The majority of the total proposed budget, approximately 85%, is necessary to cover the anticipated costs of investing the assets of the Health Care Security Trust (“HCST”) with the Pension Reserves Investment Management (“PRIM”) Board, and in other investment strategies unavailable through PRIM.  The remainder of the proposed budget is for anticipated costs relating to the administration and operations of the Trust.

Attached is a breakdown of the anticipated costs.  Please contact me if you have any questions.

Sincerely,
Paul Todisco
Executive Director

Enc. 

CC:      Vincent Alabiso, House Ways and Means Committee
            Robert Ross, Senate Ways and Means Committee
            Health Care Security Trust Board of Trustees

Health Care Security Trust
Proposed Budget Fiscal Year 2006

Description

Investment Management Fees

HCST Operations

Total Proposed Budget

Investment Manager Fees

 $      3,333,424

 

 $         3,333,424

Auditing Fee

 

 $              85,000

 $              85,000

Executive Director and Staff

 

 $            170,000

 $            170,000

Operating Expenses

 

 $              15,000

 $              15,000

Office Space

 

 $              30,000

 $              30,000

Investment Consultant

 

 $              82,500

 $              82,500

Legal Fees

 

 $            110,000

 $            110,000

Directors & Officers Insurance

 

 $            100,000

 $            100,000

Equipment Purchase

 

 $                5,000

 $                5,000

Other

 

 $                8,250

 $                8,250

Total

 $      3,333,424

 $            605,750

 $         3,939,174