Comptroller Fiscal Year Memo Letter Head

June 26, 2012

Secretary Jay Gonzalez
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 Gonzalez, Chairman Brewer and Chairman Dempsey:

On June 15, 2012, the Attorney General and Department of Revenue jointly certified to the State Comptroller that for the fiscal year 2012 ending June 30, 2012, individual tax-related settlements and judgments exceeding $10 million were $368,921,132.20   and non-tax related settlements and judgments exceeding $10 million were $35,453,838.00.  The calculated amounts were further reduced by $29,354,284.72 as the Ambulatory Payment Group settlement amount to be set aside, for a combined total of $375,020,685.48. In accordance with Section 2H of Chapter 29 of the Massachusetts General Laws, as most recently amended by section 37 of Chapter 68 of the Acts of 2011 and Section 8 of the Chapter 96 of the Acts of 2012, I hereby inform you that I will be transferring $161,212,506.28  to the Commonwealth Stabilization Fund as a result of individual tax-related and non-tax related settlements and judgments exceeding $10 million for  the remainder of fiscal 2012. This is in addition to the $213,808,179.20 transferred through April 2012.

Section 155 of Chapter 68 of the Acts of 2011 (the fiscal year 2012 General Appropriations Act) authorizes the transfer of interest earned by the Commonwealth Stabilization Fund during fiscal year 2012 to the General Fund.  Transfers totaling $5,723,297.88  to the General Fund were made previously in fiscal year 2012. For additional interest earned through May  2012, we will process a transfer totaling $657,621.57 in conjunction with the Office of the State Treasurer and Receiver General. 

Section 155 of Chapter 68 of the Acts of 2011 directs the Comptroller to transfer $200,000,000.00 from the Stabilization Fund to the General Fund prior to June 30, 2012.  Therefore, we will process a transfer of $200 million from the Stabilization Fund to the General Fund. 

The attachment also shows the Stabilization Fund balance of $1,535,307,876.81 as of this date, including all prior transfers, earnings and deposits credited to the Stabilization Fund during fiscal year 2012.

For your information, the Comptroller’s web site includes a page showing a summary of current fiscal year Stabilization Fund transactions as well as a chart showing historical and current balances in the Stabilization Fund. That page is updated each time a transfer is made to or from the Stabilization Fund, and can be accessed at the following hyperlink:

http://www.mass.gov/osc/research-and-statistics/commonwealth-stabilization-fund.html

If you have any questions regarding this letter, please feel free to contact me at (617) 973-2315 or Howard Merkowitz, Deputy Comptroller, at (617) 973-2602

Respectfully transmitted,

Martin J. Benison
Comptroller

Attachments xls format of    Jun 6 2012 Transf Attch

Cc:     
Amy Pitter, Commissioner, Department of Revenue
Judy Zeprun Kalman, Deputy Attorney General, Attorney General’s Office
Michael Esmond, Budget Director, Administration and Finance
Rob Dolan, Director of Finance, Administration and Finance
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