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  $1.574 billion as of May 2012 includes the FY12 inflows and outflows shown in the table below. Inflows include interest, withholding on Lottery winnings taken as lump sum payments and, per a statutory change effective in FY12, all judgments and settlements in excess of $10 million. Outlfows include interest earnings transferred to the General Fund per the FY12 General Appropriation Act and, per Chapter 194 of the Acts of 2011 (which authorized expanded gaming in the Commonwealth), transfers of $20 million from the Stabilization Fund to fund the startup costs of administering expanded gaming. The first $20 million in revenue from gaming licenses will reimburse the Stabilization Fund for the $20 million in FY12 startup cost transfers. Please note that the balance shown in the chart below does not reflect the $200 million transfer from the Stabilization Fund to the General Fund mandated in Section 155 of Chapter 68 of the Acts of 2011 (the FY12 General Appropriations Act) that must take place by June 30, 2012.

 

    

FY2012 Activity

	Amount
	($ millions)
FY 12 Beginning Balance	1,379.1
Inflows
Judgments and Settlements in Excess of $10 Million	213.8
FY12 YTD Interest Earnings	5.7
Withholding on Lottery Winnings Taken as Lump Sum Payments	1.1
Total FY12 Inflows	220.7
Outflows
Interest Earnings Transferred to the General Fund	(5.7)
Transfers to Fund Expanded Gaming Startup Costs	(20.0)
Total FY12 Outflows	(25.7)
FY12 Net Inflows	194.9
Current Balance	1574.0