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HD 5802

A communication from the Office of the Comptroller (see item 1599-3384 of Section 2 of Chapter 9 of the Acts of 2025) submitting the Settlements and Judgements accounts payable report for the third quarter of fiscal year 2026

194th Legislature (2025-2026)

The bill requests a $25 million supplemental appropriation to the Settlements and Judgments reserve to continue payments through the end of FY2026 and into FY2027.

Placed on file
0
WeVote Research Nonpartisan
Bill Summary · HD 5802

Overview

  • Jurisdiction: Massachusetts
  • Bill: HD 5802 (Session 194th)
  • Source: Communication from the Office of the Comptroller submitting the Settlements and Judgments accounts payable report for the third quarter of fiscal year 2026 (FY2026 Q3)
  • Action history: Placed on file (2026-06-18)

Purpose and Intent

  • The bill transmits and formalizes the Settlements and Judgments (S&J) report for the third quarter of FY2026, as required by Section 2 of Chapter 9 of the Acts of 2025.
  • It documents spending from the Settlements and Judgments reserve (account 1599-3384) and assesses the Commonwealth’s ability to meet obligations given current and projected funding.

Key Provisions and Details

  • Funding and Reserve Status:
    • Beginning FY2026 S&J reserve: $5,977,479 (comprised of a $1,000,000 GAA appropriation and $4,977,479 carried from prior appropriation).
    • Spend-in-anticipation authority: In the FY2026 GAA, spending in anticipation was allowed up to an average of the prior five years’ expenditures. The July 2025 ceiling was set at $20,306,986 (historical average).
    • Prior-year and current-year expenditures through Q3 FY2026:
    • FY2026 YTD through Q2: $19,354,158 spent (through March 31, 2026).
    • Q3 FY2026 expenditure: $3,400,622.
    • Total FY2026 expenditures to date: $19,354,970 (slightly different rounding in report).
    • Remaining capacity to spend as of March 31, 2026: $952,828.
    • Remaining appropriated funds as of December 31, 2025: $0.
    • Expenditure under “spend in anticipation” as of March 31, 2026: $13,376,679, with a ceiling of $20,306,986.
    • By the third quarter, the capacity to spend was effectively depleted in the following weeks, and no further claims could be paid without additional appropriation.
  • Supplemental Funding Request:
    • The Comptroller projects a need for approximately $11.5 million in incremental funding to cover deficits and to fund the final quarter of FY2026, given expected settlements awaiting payment (April–May) and estimated June payments, prior to the FY2026 GAA signing.
    • Proposed supplemental appropriation: $25.0 million to the S&J account (1599-3384) as soon as possible.
    • Rationale: Any amount carried into FY2027 would be used quickly, potentially reducing the need for later appropriations.
  • Reporting and Transparency:
    • A detailed attachment lists payees, amounts, and responsible department/agency for settlements and judgments paid during Q3 from 1599-3384.
    • Data is also posted on the Comptroller’s transparency website, CTHRU (link provided in the report).

Who/What is Affected

  • Commonwealth agencies and departments with settlements and judgments payable from the S&J reserve (1599-3384).
  • Beneficiaries include plaintiffs or entities receiving settlements/judgments per paid claims.
  • State agencies that incur or manage S&J payments (e.g., Attorney General’s Office, Department heads, and contracted law firms) are referenced in the payment list.
  • The General Fund structure is affected via potential supplemental appropriation to cover shortfalls.

Procedural and Timeline Aspects

  • The report covers FY2026 Q3 (through March 31, 2026) but notes that actual payments continued in the weeks following and that supplemental funding is needed to cover obligations through the end of FY2026 and into FY2027.
  • Legislative action requested: A supplemental appropriation of $25.0 million to reinstate and sustain S&J payments for the remainder of FY2026 and to support final-quarter obligations.
  • Pending actions: The supplemental funding would require approval by the General Court (Massachusetts Legislature) and signing by the Governor as part of the GAA process.

Bottom Line

  • The Comptroller’s FY2026 Q3 Settlements and Judgments report shows substantial use of the S&J reserve with limited remaining capacity, necessitating a proposed $25.0 million supplemental appropriation to ensure the Commonwealth can continue paying settlements and judgments through the end of FY2026 and into FY2027. The report emphasizes transparency and provides a detailed payee-by-payor breakdown and an online public posting via CTHRU.

Compiled from official sources — confirm details with the bill’s official record.

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