Comptroller files Fiscal Year 2025 Statutory Basis Financial Report
Today, Comptroller of the Commonwealth William McNamara filed the Statutory Basis Financial Report (SBFR) for Fiscal Year 2025, the period that ended June 30, 2025.
The SBFR focuses primarily on the budgeted funds of the Commonwealth and represents a strong and stable fiscal standing during Fiscal Year 2025. Highlights of the report include:
- Fiscal Year 2025 ended with a balanced budget for the Commonwealth.
- After allocating $297 million in Capital Gains Revenue to the General Fund as required by the final supplemental appropriation bill for Fiscal Year 2025, the consolidated net surplus in budgeted funds is zero.
- Budgeted fund revenue totaled $67.102 billion, an increase of $5.367 billion, or 8.7% from Fiscal Year 2024.
- Budgeted fund expenditures and other uses totaled $68.086 billion, an increase of $6.017 billion, or 9.7% from Fiscal Year 2024.
- Budgeted fund tax revenues totaled $41.011 billion, an increase of $2.872 billion, or 7.5%, from FY24.
- $1.510 billion in education and transportation spending from the “Fair Share” 4% personal income surtax on incomes over $1 million, an increase of 67.2% from Fiscal Year 2024. Significant spending included $737 million for Elementary and Secondary Education, $264 million for Higher Education, and $507 million for Transportation.
- Budgeted fund federal reimbursements of $16.210 billion, an increase of 11.0% from Fiscal Year 2024, due primarily to an increase in federal Medicaid reimbursements
- Medicaid (MassHealth) expenditures of $22.129 billion, an increase of 10.3% from Fiscal Year 2024, due to growth in Medicaid caseloads and an increase in healthcare costs
- Spending on other Executive Office of Health and Human Services programs totaled $10.282 billion, an increase of 9.2 % from Fiscal Year 2024, primarily due to increased spending at the Department of Developmental Services, and on adult mental health spending and behavioral health workforce supports
- Sales and use tax collections of $6.859 billion, up 3.5% from Fiscal Year 2024
- Total Lottery profits of $1.059 billion, a decrease of 8.0% from Fiscal Year 2024
- The year-end balance in the Commonwealth Stabilization (“Rainy Day”) Fund is $8.111 billion, down from a Fiscal Year 2024 year-end balance of $8.524 billion and slightly above the Fiscal Year 2023 balance of $8.036 billion.
- The Stabilization Fund decrease of $413 million during Fiscal Year 2025 includes $421 million of Fiscal Year 2024 interest that was transferred to the Commonwealth Federal Matching and Debt Reduction Fund during Fiscal Year 2025. Had this amount been transferred during Fiscal Year 2024, the result would have been very slight net increase in Fiscal Years 2024 and 2025.
- During this two-year period when growth in the Stabilization Fund was minimal, overall spending grew strongly. As a result, the balance in the Stabilization Fund has declined as a proportion of annual General Fund own-source spending, but remains well above the median for all states on that measure.
The SBFR has been posted at https://www.macomptroller.org/sbfr.
The Fiscal Year 2025 SBFR was filed after the statutorily required due date of October 31, continuing a pattern of delay in six of the past seven years. The publication and filing of the SBFR is dependent on the final enactment of the closeout supplemental budget which, for Fiscal Year 2025, was signed on November 25, well past that statutory deadline. Said Comptroller William McNamara, “This report reflects prudent and sound fiscal management by the Commonwealth’s elected officials. In future cycles, I would respectfully urge that the Administration and Legislature look to prioritize timely completion of the closeout supplementary budget with the same careful stewardship they have shown to making budgeting decisions.”
About the SBFR
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.
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.
About the Office of the Comptroller
The Office of the Comptroller of the Commonwealth of Massachusetts (CTR) is an independent and apolitical agency charged with overseeing the Commonwealth’s financial systems, preparing the annual financial reporting, and managing the external single audit process. In addition, CTR oversees the Commonwealth’s general ledger, payroll and vendor management, trains state employees on risk mitigation, and operates the Commonwealth’s financial system.
As stewards of the public trust, CTR aspires to inspire confidence by maintaining our core principles: clarity, integrity, and accountability. The powers and obligations of the Office of the Comptroller are generally dictated by M.G.L. c. 7A.
The Comptroller of the Commonwealth is William McNamara, who has served as the 20th Comptroller since February 2020.
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