The Commonealth 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 $1.223 billion as of August 2014 includes the FY2015 inflows and outflows shown in the table below. Inflows include July 2014 interest earnings and withholding tax on Lottery winnings taken as lump sum payments. Outflows include a transfer of $140 million to the General Fund authorized by Section of 259 of Chapter 165 of the Acts of 2014 (the FY2015 General Appropriation Act) and July 2014 interest earnings, transfer of which is also authorized in the General Appropriation Act. Reflected in the preliminary FY2014 ending balance (FY15 beginning balance) is a transfer of $300 million from the Stabilization Fund to the General Fund authorized by Section 25 of Chapter 237 of the Acts of 2014. That section authorizes transfer back to the General Fund of FY2014 judgment and settlement revenue previously deposited in the Stabilization Fund, but only to the extent necessary to result in a FY2014 ending budgetary fund surplus of $57.5 million. The $300 million transfer made in August 2014 was done on an estimated basis, and will be adjusted when the Comptroller determines the exact amount of the needed transfer as the FY2014 books are closed and the Statutory Basis Financial Report (SBFR) is issued in October 2014.

Stabilization Fund Chart as of August 2014

Fiscal Year 2015 ActivityAmount
($ millions)
  
FY2014 Ending/FY15 Beginning Balance (Preliminary)1,362.7
  
Inflows 
July 2014 Interest Earnings 0.5
Withholding Tax on Lottery Winnings Taken as Lump Sum Payments0.002
  
Total FY2015 Inflows0.5
  
Outflows 
$140 Million Transfer To General Fund Mandated by FY2015 General Appropriation Act 
FY2015 Interest Earnings Transferred to General Fund(0.5)
  
Total FY2015 Outflows(140.5)
  
FY2015 Net Outflows(140.0)
  
Current Stabilization Fund Balance1,222.7