Budget Amendment ID: FY2027-S4-798

OTH 798

Support to Local Municipalities Through the Rainy Day Fund

Mr. Durant moved that the proposed new text be amended by inserting the following section:-

"SECTION XX. Notwithstanding any general or special law to the contrary, for the period beginning July 1, 2026 and ending June 30, 2031, a portion of the interest earned on amounts held in the Commonwealth Stabilization Fund, as established by section 2H of chapter 29 of the General Laws, shall be transferred annually to support unrestricted general government aid to municipalities.

For each fiscal year during the five year period, the comptroller shall calculate the total interest earnings attributable to the Commonwealth Stabilization Fund for the preceding fiscal year. Of that amount, 25 per cent shall be transferred, not later than September 1, to the General Fund and shall be expended for the purposes of unrestricted general government aid paid directly to municipalities.

The remaining balance of interest earnings not subject to transfer shall be retained in the Commonwealth Stabilization Fund.

The provisions of this act shall expire on June 30, 2031, and shall not apply to interest earnings in any fiscal year thereafter."