August 14, 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.
Section 25 of Chapter 237 of the Acts of 2014 requires that the Comptroller retain in the General Fund FY14 judgments and settlements in excess of $10 million previously transferred to the Stabilization Fund under Section 2H of Chapter 29, but no more than is necessary to result in an FY14 consolidated net surplus of $57.5 million. The amount of settlements and judgments needed to result in an FY14 surplus of $57.5 million cannot be determined until the FY14 books are closed in October and I issue the Statutory Basis Financial Report (SBFR). However, the Treasurer’s Office and the Executive Office of Administration and Finance have requested that in order to ensure the Commonwealth maintains sufficient cash balances in August and September, I transfer on an estimated basis judgment and settlement revenue previously transferred to the Stabilization Fund back to the General Fund. To honor this request, I will transfer $300 million from the Stabilization Fund to the General Fund this week. The final amount of the transfer will be determined when the Comptroller’s Office closes the books on the FY14 fiscal year in October, at which time an adjustment will be made to the transfer.
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. Therefore, a transfer totaling $498,556.45 will be processed, which includes interest earned by the Stabilization Fund from July 1 through August 12, 2014.
If you have any questions concerning this letter, please contact Howard Merkowitz, Deputy Comptroller, at 617-973-2602.
Martin J. Benison
Emme Schultz, Assistant Secretary for the Budget and Fiscal Operations
Ashley Groffenberger, Budget Director, House Ways and Means
Douglas Howgate, Budget Director, Senate Ways and Means
James MacDonald, First Deputy Treasurer, Treasurer’s Office
Howard Merkowitz, Deputy Comptroller, Office of the Comptroller
BJ Trivedi, FRAB Director, Office of the Comptroller
Julia Burns, GAB Director, Office of the Comptroller
Section 25 of Chapter 237 of the Acts of 2014
Notwithstanding any general or special law to the contrary, for fiscal year 2014, the comptroller shall retain in the General Fund all amounts that would otherwise be transferred under the last paragraph of section 2H of chapter 29 of the General Laws, but not more than necessary to result in a consolidated net surplus of $57,500,000.
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.