Comptroller Fiscal Year Memo Letter Head

September 22, 2014

Secretary Glen Shor
Executive Office of Administration and Finance

The Honorable Stephen M. Brewer, Chairman
Senate Committee on Ways and Means

The Honorable Brian S. Dempsey, Chairman
House Committee on Ways and Means

Dear Secretary Shor, Chairman Brewer, and Chairman Dempsey:

This letter is to inform you of Stabilization Fund transfers for FY2014 and FY2015.

FY2014

Section 172(b) of Chapter 38 of the Acts of 2013 (the FY2014 General Appropriation Act) authorizes the transfer of interest and other investment income earned by the Commonwealth Stabilization Fund during FY2014 to the General Fund.  Total interest earned in FY2014 was $5,546,875.59.  Transfers totaling $5,369,146.13 to the General Fund were made previously in fiscal year 2014.  Therefore, we will process the final FY2014 interest transfer totaling $177,729.46.

Additionally, a transfer of $1,712,312.45 to the General Fund will be made to reflect the unrealized gain in the market value of investments during FY2014.

FY2015

Section 259(b) of Chapter 165 of the Acts of 2014 (the FY2015 General Appropriation Act) authorizes the transfer of interest and other investment income earned by the Commonwealth Stabilization Fund during FY2015 to the General Fund.  Interest earned by the Stabilization Fund during FY2015 for the period of August 13, 2014 to August 31, 2014 totaled $571,857.53.  Therefore, a transfer of that amount from the Stabilization Fund to the General Fund will also be processed in conjunction with the Office of the State Treasurer and Receiver General.

On September 4, 2014, the Attorney General and the Commissioner of Revenue jointly certified to the State Comptroller’s Office that there were no individual judgments and settlements in excess of $10 million for the period July 1, 2014 to August 31, 2014.

If you have any questions concerning this letter, please contact Howard Merkowitz, Deputy Comptroller, at (617) 973-2602.

Sincerely,

Martin J. Benison
Comptroller

Enc.     Attachment #1 – Section 172(b) of Chapter 38 of the Acts of 2013

            Attachment #2 – Section 259(b) of Chapter 165 of the Acts of 2014

            Attachment #3 xls format of Stabilization Sept 2014 Calculation
– Stabilization Fund Balance Spreadsheet

Cc:       
Emme Schultz, Assistant Secretary for the Budget and Fiscal Operations
Amy Pitter, Commissioner, Department of Revenue
Judy Zeprun Kalman, Deputy Attorney General, Attorney General’s Office
Ashley Groffenberger, Budget Director, House Ways and Means
Douglas Howgate, Budget Director, Senate Ways and Means
James MacDonald, First Deputy Treasurer, Treasurer’s Office            
Kazim Ozyurt, Director, Office of Tax Policy Analysis, Department of Revenue
Howard Merkowitz, Deputy Comptroller, Office of the Comptroller
BJ Trivedi, FRAB Director, Office of the Comptroller
Julia Burns, GAB Director, Office of the Comptroller

Attachment #1

Chapter 38 of the Acts of 2013

Section 172(b) Notwithstanding any general or special law to the contrary, the comptroller shall, on or before June 30, 2014, transfer the interest earned from the Commonwealth Stabilization Fund during fiscal year 2014 to the General Fund.

Attachment #2

Chapter 165 of the Acts of 2014

Section 259(b) Notwithstanding any general or special law to the contrary, the comptroller, by June 30, 2015, shall transfer to the General Fund the interest earned from the Commonwealth Stabilization Fund during fiscal year 2015.