Comptroller Fiscal Year Memo Letter Head

January 10, 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 January 4, 2012, the Attorney General and Department of Revenue jointly certified to the State Comptroller that for the six month period ending December 2011, individual tax-related settlements and judgments exceeding $10 million were $139,213,606.20 and non-tax related settlements and judgments exceeding $10 million were $24,000,000.00 for a combined total of $163,213,606.20. Therefore, pursuant to 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, I hereby inform you that I will be transferring $81,839,948.20 to the Commonwealth Stabilization Fund. This is in addition to the $71,347,156 transferred in October 2011 and $10,026,502.00 transferred in November 2011 to the Stabilization Fund as a result of individual tax-related settlements and judgments exceeding $10 million for the four month period ending October 2011.

Section 94(b) of Chapter 194 of the Acts of 2011, “An Act Establishing Expanded Gaming in the Commonwealth”, requires the Comptroller to transfer $15,000,000 from the Commonwealth Stabilization Fund to the Massachusetts Gaming Commission on or before December 22, 2011.  This transfer was processed on schedule. An additional transfer of $5,000,000 from the Stabilization Fund to the General Fund for gaming startup costs was processed earlier in December, also pursuant to Chapter 194.

Section 155 of Chapter 68 of the Acts of 2011 (the fiscal year 2012 General Appropriations Act) authorizes the transfer of the interest earned from the Commonwealth Stabilization Fund during fiscal year 2012 to the General Fund.  A transfer of $1,807,648.00 to the General Fund was made previously in fiscal year 2012. For additional interest earned through December 2011, we will process a transfer totaling $1,238,866.07 in conjunction with the Office of the State Treasurer and Receiver General. 

Therefore, the current total of amounts to be transferred per the attached worksheet is $98,078,814.27. The attachment also shows the Stabilization Fund balance as of December 31, 2011, including all prior transfers, earnings and deposits credited to the Stabilization Fund during fiscal year 2012.

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

Attachment xls format of    2012 01 09 Stabilization Fund Transfer Attch

Cc:       

Amy Pitter, Commissioner, Department of Revenue
Judy Zeprun Kalman, Deputy Attorney General, Attorney General’s Office
Matthew Gorzkowicz, Undersecretary, 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