FUND FOR A HEALTHY MAINE                                         July 2011                                                ...
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January 2010                                                                                           54                ...
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FHM Financial History, 2000-2013, Updated July 2011

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FHM Financial History, 2000-2013, Updated July 2011

  1. 1. FUND FOR A HEALTHY MAINE July 2011 Financial History through FY 13Tobacco payments through FY 13: $742.8 million (Excludes interest income; includes projected payments through FY 13).General Fund transfers (Includes FY 12/13 allocated transfers) $126.8 million (17.1%) ______________________________June 1999 the following legislation was approved:  FHM and FHM Trust Fund established, with 10% of settlement payments each 27 year (for five years) to go into the Trust Fund.  Approx. $18.6 million allocated to programs (much of it contingent funding because first 28 settlement payment not yet received).  29 $3.5 million capital advance from General Fund for tobacco programs.April 2000:  30 Approx. $11.1 million allocated to FHM Trust Fund for FY 99-00 and 00-01.  31 Approx. $56 million allocated to programs for FY 01.  32 $25,540,000 placed in biennial reserve for FY 02 program spending (cash flow).  33 $15 million approved for transfer to General Fund by 6/30/01.June 2001:  34 35 $11,094,848 in the Trust Fund transferred to the General Fund; Trust Fund abolished.  36 $9,055,000 cut from FY 01 program allocations; $46,887,832 finally allocated.  FY 01 program cut NOT restored in FY 02-03. 37 FY 02 allocation approx. $47.5 million; FY 03 allocation approx. $48.1 million.  Additional transfers to General Fund approved: 38 $10,000,000 in FY 02 39 $29,672,837 in FY 03  Annual working capital advance of $25.5 million from General Fund to FHM 40 authorized beginning July 1, 2003 (cash flow).March and November 2002:  41 Unexpended balances lapsed to reserve. $3.2 million transferred to General Fund.1 PL 1999, c. 401, Pt. V, § 128 PL 1999, c. 401, Pts HH, MM, NN, OO, PP, QQ, KKK, LLL, MMM, NNN, TTT29 PL 1999, c. 401, Pt. V, § 430 PL 1999, c. 731, Pt. RR31 See 11/01/01 OFPR, “Fund for a Healthy Maine Allocations and Other Uses”32 PL 1999, c. 731, Pt. RR33 PL 1999, c. 731, Pt. WW34 PL 2001, c. 358, Pt. Q, § 835 PL 2001, c. 358, Pt. Q, § 536 PL 2001, c. 358, Pt. Q, § 1037 11/01/01 OFPR , “Fund for a Healthy Maine Allocations and Other Uses”38 PL 2001, c. 358, Pt. Q, § 939 PL 2001, c. 358, Pt. Q, § 9; Pt. Y, § 2; PL 2001, c. 439, Pt ZZZZ40 PL 2001, c. 358, Pt. Y, § 1. Advance was increased to $37.5 million in Nov. 2002 special session. PL 2001, c. 714, Part OO, § 1.41 PL 2001, c. 559, Pt. AA, § 9 Produced by the Maine Public Health Association, Updated, July 2011 (ako)
  2. 2.  42 Additional unexpended balances lapsed. $8,162,638 (net) approved for transfer to GF.In Spring 2003:  43 $350,000 lapsed balance transferred to General Fund (in FY 03).  44 $6,412,290 transfer to General Fund approved for FY 04.  45 $300,000 transfer to General Fund approved for FY 05.June 2005:  46 $400,000 transfer to General Fund approved for FY 06.  47 $4.6 million cut from FY 07 program allocations; transfer to General Fund approved.April 2006  48 April 2006 MSA payment about $6.14 million less than projected, due to market share dispute.  49 $2,346,727 is restored to the FHM for FY 06, as part of two-year restoration of FY 07 diversion.  50 $2,103,273 is restored to the FHM for FY 07, as remainder of restoration of FY 07 diversion.Spring 2007  2007 MSA payments ($46.7 million) about $3.6 million more than projected  51 Allocation to tobacco program in FHM in FY07 supplemental budget remains $14.7 million  Biennium budget passed in June includes $6.2 million transfers to the General Fund:  In FY 07: $3.989.370  In FY 08: $1,230,000  In FY 09: $1,000,000March 2008  52 Supplemental budget includes $4.9 million diversion of funds from FHM to General Fund:  In FY08: $1.8 million  In FY09: $3.1 millionJanuary 2009  2009 MSA payments total $63.4 million, $4.3 million more than projected.  53 Supplemental budget includes $5.0 million diversion of funds from FHM for Dirigo Health program in FY 09.July 2009  $11.4 million in reserve funds in the FHM at the close of 2009.42 PL 2001, c. 714, Pt. A, § 1; Pt. B, §§ 1 and 9. An additional $2.2 million that was diverted was replaced from other sources.43 PL 2003, c. 51, Pt. A.44 PL 2003, c. 20, Pt. D, § 25 ($6,112,290); PL 2003, c. 451, Pt. MM, § 1 ($300,000)45 PL 2003, c. 451, Pt. C, § 146 PL 2005, c. 457, Pt. II, § 147 PL 2005, c. 457, Pt. II, § 148 Dispute brought by the OPMs for loss of market share in 2003 due to participation in the MSA. The dispute is likely to occur each year for some time.49 PL 2005, c. 519, Pt. N, § 150 PL 2005, c. 519, Pt. N, § 151 PL 2007, c. 152 PL 2008, c. 53953 PL 2009, c. 1 Produced by the Maine Public Health Association, Updated, July 2011 (ako)
  3. 3. January 2010  54 8 MRSA § 1036, sub-§ 2, paragraph E. is amended to limit the amount of racino funds in the Fund for a Healthy Maine to $4.5 million in FY 10, 11, and 12. The remaining balance is to be transferred to the General Fund.March 2010  55 Supplemental budget includes $13.4 million in cuts to the FHM. o In FY 10/11, $5.4 million in reserves are transferred to the General Fund. o In FY 10/11, $9.1 million is transferred to fund the Dirigo Health program. o In FY 10/11, $.33 million is transferred to fund the School Breakfast Program. o In FY 11, $1.4 million of transferred funds are restored by DAFS.February 2011  An emergency supplemental budget, signed into law on February 8, 2011, allows for the cash advance of funds not 56 to exceed $3,500,000 to the Fund for a Healthy Maine programs for FY 10/11. Funding allocations for the fiscal year exceed revenue reprojections in December 2010, resulting in an expected shortfall in the Fund for a Healthy Maine. The Fund for a Healthy Maine is required to repay the allocation, including compounding interest, with funding from its FY11/12 settlement payments.  57 Supplement budget includes a $1.4 million cut to the FHM. o In FY11, $1.4 million is transferred to DAFS to offset a previous deallocation.April 2011  Industry payments per the MSA are made to the State of Maine totaling $50.0 million. This is below initial projections, but exceeds Maine Revenue Forecasting estimates as of December 2010. As a result, the shortfall remaining in the Fund before the close of the 2011 fiscal year totals $1.9 million.June 2011  58 Biennial budget includes $8.1 million in diversions to General Fund programming. o In FY 12/13, $4,615,445 in settlement funds is transferred to the General Fund. o In FY 12/13, $2,323,294 in settlement funds is transferred to fund the Dirigo Health program. o In FY 12/13, $427,440 in settlement funds is transferred to fund the School Breakfast Program. o In FY 12/13, $742,755 in settlement funds is transferred to the MaineCare program.  Biennial budget includes language changes that: o Continue to limit the amount of racino funds in the Fund for a Healthy Maine to $4.5 million through FY 13. 59 The remaining balance shall be transferred to the General Fund. o Discontinue the appropriation of FHM funds to offset tobacco excise tax revenue losses as a result of 60 Maine’s ban on flavored cigars.  $1.9 million in FY 11/12 settlement payments are transferred to an account in the Department of Administrative and Financial Services receiving funding for the Fund for a Healthy Maine with interest to Other Special Revenue Funds as 61 repayment for cash advances made to programs in the FY10/11 budget.54 PL 2010, c. 46255 PL 2010, c. 57156 PL 2011, c. 1, Pt. G57 PL 2011, c. 1, Pt. A58 PL 2011, c. 380, Pt. A59 PL 2011, c. 380, Pt. II, §160 PL 2011, c. 380, Pt. II, §261 PL 2011, c. 1 Pt. G, §2 Produced by the Maine Public Health Association, Updated, July 2011 (ako)

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