Comptroller Fiscal Year Memo Letter Head

January 7, 2013 

Secretary Glen Shor
Executive Office of Administration and Finance 

The Honorable Stephen M. Brewer
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: 

On January 2, 2013, the Attorney General and Commissioner of Revenue jointly certified to the State Comptroller’s Office that for the period November 1, 2012 through December 31, 2012 individual judgments and settlements in excess of $10 million totaled $105,265,307.56, and for FY13 year-to-date such judgments and settlements totaled $120,265,307.56. Pursuant to Section 2H of Chapter 29 of the Massachusetts General Laws, the entire amount of such settlements normally would be transferred to the Commonwealth Stabilization Fund. However, Section 79 of Chapter 238 of the Acts of 2012, “An Act Relative to Infrastructure Investment, Enhanced Competitiveness and Economic Growth in the Commonwealth”, requires that the Comptroller transfer $4,000,000 from the General Fund to the Smart Growth Housing Trust Fund from judgments and section 80 of the same Act requires that, rather than be transferred to the Stabilization Fund, such revenue be retained in the General Fund in an amount equal to the revenue lost from the sales tax holiday. On December 31, 2012 the Commissioner of revenue certified that the amount of sales tax revenue foregone by the General Fund due to the August 2012 sales tax holiday totaled $21,040,000.00 after adjusting for increases in income and corporate tax revenue generated by greater economic activity induced by the sales tax holiday. 

Previously in FY13, I transferred $4,000,000 from judgments and settlements to the Smart Growth Housing Trust Fund. Based on the Commissioner of Revenue’s certification of General Fund revenue foregone due to the sales tax holiday, $21,040,000.00 will be retained in the General Fund. The remaining $95,225,307.56 in FY13 settlements and judgments revenue will be transferred to the Stabilization Fund. 

Section 160 of Chapter 139 of the Acts of 2012 (the fiscal year 2013 General Appropriation Act) authorizes the transfer of interest earned by the Commonwealth Stabilization Fund during fiscal year 2013 to the General Fund. Therefore, a transfer of $1,099,070.82, which represents interest earned by the Stabilization Fund during fiscal year for the period November 1, 2012 through December 31, 2012, also will be processed in conjunction with the Office of the State Treasurer and Receiver General. 

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

Sincerely, 

Martin J. Benison
Comptroller 

Enc.

January 2013 Transfers Attachment 1 doc format of January 2013 Transfers attch 1
January 2013 Transfers Attachment 2 doc format of January 2013 Transfers attch 2
January 2013 Transfers Attachmnet 3 pdf format of January 2013 Transfers attch 3

 Cc:       
Amy Pitter, Commissioner, Department of Revenue
Judy Zeprun Kalman, Deputy Attorney General, Attorney General’s Office
Samuel Goldhar, 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