Comptroller Fiscal Year Memo Letter Head

M E M O R A N D U M

To:Cheif Fiscal Officers 
From:Martin J. Benison, Comptroller
Jay Gonzalez, Secretary, Executive Office for Administration and Finance (ANF)
 
Date:June 28, 2011
Re:FY12 Interim Budget Guidance

Comptroller Memo
FY#2012-02

Executive Summary

The FY12 Interim Budget has been signed. This memo offers guidance on operating under an interim budget.



We begin FY12 without a General Appropriation Act.

The FY12 Interim Budget for $1.25 billion was signed by the Governor. The Commonwealth will operate under interim budget authorization beginning July 1, 2011. This 10-day interim budget is expected to cover department incurrence needs through July 10 th or until the enactment of the FY12 General Appropriation Act, whichever occurs first.

When administering your budget under this interim, and especially in light of the continued fiscal uncertainty, it is important that you follow certain fiscal "rules"- highlighted in the Comptroller's FY11 Close/FY12 Open Instructions doc format of FY2011-2012_CloseOpen_Instr.doc
as well as the Interim Budget Guidance (ANF 9) (May 1, 2008).

Please review the following from A & F - 9:

Constraint by the GAA

A. Departments must assume, absent explicit instruction to the contrary from the Comptroller, that all activity conducted under an interim budget will be subject retroactively to the conditions and restrictions included in the GAA when eventually signed into law. Departments must not undertake any activities which they have reason to believe will not be supported by the relevant appropriations and other provisions of the GAA. In the absence of a report of a Conference Committee on the budget, and where the relevant appropriations and other provisions enacted by the Senate and the House of Representatives differ materially, departments must act under their best judgment regarding the likely resolution by a Conference Committee, but should favor the most conservative reasonable prediction of the outcome. Departments should consult with ANF prior to making significant commitments which would exceed the lower of the relevant House and Senate spending authorizations.

Departments must also recognize that fiscal constraints and policy differences may result in the Governor vetoing or reducing appropriations or other provisions of the GAA as enacted by the General Court when he signs it into law, and must manage obligations accordingly

It is imperative that all accounts be reviewed for compliance within these limitations.

Departments should proceed with routine business, including processing invoices within 9 days to assure prompt payment discounts are taken if offered. All activity conducted under an interim budget will be subject retroactively to the conditions and restrictions included in the GAA when signed into law. Departments must not undertake any activities which they have reason to believe will not be supported by the relevant appropriations and other provisions of the GAA, specifically any obligations which are not supported by an appropriation that appears in both the House and Senate Budgets. Departments should direct FY12 payment requests for override to Kathy Sheppard at 617.973.2666 and Michael Eyob at 617.973.2310.

If you have any questions please contact Martin Benison at (617) 973-2315 or Mike Esmond at (617) 727-2081 x35472.

cc: MMARS Liaisons
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