| The Stabilization Fund accounts for amounts calculated in accordance with State Finance Law (Chapter 29, Section 5C of the General Laws) and maintains a reserve to enhance the Commonwealth's fiscal stability. The balance of $1.732 billion as of March 2013 includes the FY2013 inflows and outflows shown in the table below. FY2013 inflows include interest earned by the Stabilization Fund and withholding on Lottery winnings taken as lump sum payments. Inflows do not include deposits of capital gains tax revenues in excess of $1 billion mandated by Section 5G of Chapter 29 of the Massachusetts General Laws; the Executive Office for Administration and Finance projects that such deposits will total $90 million in FY2013, which would occur in the second half of the fiscal year. Outflows include interest earnings transferred to the General Fund per the FY13 General Appropriation Act. Outflows and other adjustments do not include a total transfer of $550 million from the Stabilization Fund to the General Fund authorized by the FY13 General Appropriation Act ($350 million) and Chapter 3 of the Acts of 2013 (an additional $200 million), which is anticipated to occur no later than June 30, 2013. The balance below takes into account FY13 settlement and judgment revenue that was not deposited in the Stabilization but per statute was used for other purposes, including $4 million for the Smart Growth Housing Trust Fund, $21.04 million to reimburse the General Fund for the revenue lost due to the August 2013 sales tax holiday and $30 million to fund expenses related to costs associated with investigating and responding to a breach at the Hinton drug testing laboratory. Including these adjustments and the projected deposit of capital gains tax revenues, the Executive Office for Administration and Finance currently projects that the FY2013 Stabilization Fund ending balance will be $1.270 billion. |
