Comptroller files Fiscal Year 2022 Statutory Basis Financial Report
Today, Comptroller of the Commonwealth William McNamara filed the Statutory Basis Financial Report (SBFR) for Fiscal Year 2022, the period that ended June 30, 2022.
The SBFR focuses primarily on the budgeted funds of the Commonwealth. The report highlights revenue and spending influenced by an extraordinary influx of federal funding and tax revenue to the Commonwealth of Massachusetts as the state experienced a strong economic recovery from the COVID-19 pandemic.
Said Comptroller William McNamara, “Today’s filing of the Statutory Basis Financial Report reflects diligent work by Office of the Comptroller staff and our partners throughout state government. Collaboration from professionals throughout the Commonwealth of Massachusetts has produced this financial report that will inform policymakers, bondholders, and the public on the health of the Commonwealth’s finances. I commend their expertise and thank them for their dedication.”
Highlights of the report include:
- A consolidated net surplus of $4.812 billion in the budgeted funds (the undesignated or unreserved balances subject to the state’s annual appropriations process
- A Fiscal Year 2022 operating gain of $6.101 billion in the budgeted funds (compared to a $7.801 billion operating gain in Fiscal Year 2021)
- Budgeted fund tax revenue of $38.587 billion, up $6.815 billion, or 21.5% from Fiscal Year 2021 and $6.383 billion above the original Fiscal Year 2022 estimate
- Total personal income tax collections were $24.336 billion, up 24.1% from Fiscal Year 2021
- Tax revenues exceeded the allowable fiscal year tax limit by $2.941 billion, resulting in refunds paid out to Massachusetts taxpayers in Fiscal Year 2023
- Federal reimbursements totaled $15.779 billion, a decrease of $2.560 billion from FY 2021
- A net increase of $2.311 billion to the balance of the Commonwealth Stabilization (“Rainy Day”) Fund, which stood at $6.938 billion as of June 30, 2022
- The Commonwealth’s Stabilization Fund balance as a percentage of General Fund own source expenditures was 16.9%, well above the projected national median of 11.4%
The Statutory Basis Financial Report has been posted at https://www.macomptroller.org/sbfr.
The statutory (or budgetary) basis of accounting is defined by Massachusetts General Law and does not conform to Generally Accepted Accounting Principles (GAAP) as defined for governments by the Governmental Accounting Standards Board. The Office of the Comptroller will report the Commonwealth’s financial position on a GAAP basis in the forthcoming Annual Comprehensive Financial Report (ACFR), which is currently in preparation.
The SBFR is prepared annually by the Office of the Comptroller and was reviewed by the Commonwealth’s independent Certified Public Accountants, CliftonLarsonAllen LLP. This report meets the statutory requirement in Massachusetts General Laws c. 7A, § 12 to present fairly the results of the prior fiscal year’s activity in the Commonwealth’s funds, to compute and certify the balance in the Stabilization Fund, and to disclose and report certain aspects of financial performance as directed by statute.