Massachusetts Department of Transportation
Statement of Revenue and Expenses - Actual vs. Budget
For the Fiscal Year 2013 Through Period Ending March 31, 2013
Report ID: BUD-001B-MTTF
Run Date:
4/11/2013
Massachusetts Transportation Trust Fund
(000's = Thousands)
Year to Date (YTD)
July - March
YTD Actual
REVENUE
Toll Revenue
Pledged - MHS and WT
Toll Collections
Departmental
Rental/Lease Income
Unpledged - Tobin
Total Toll Revenue
Non-Toll Revenue
Departmental
Rental/Lease Income
Total Non-Toll Revenue
Commonwealth Trust Fund Transfer
Operations funding
Metropolitan highway system bonds
Central artery operations and maintenance
Total Commonwealth Trust Fund Transfer
Seasonally
Adjusted Budget
13 Accounting Periods
Budget Fiscal Year
Variance
Favorable /
(Unfavorable)
YTD Actual +
Projected
%
Variance
Favorable /
(Unfavorable)
Annual Budget
%
225,203
10,491
25,795
23,058
284,547
226,731
12,385
24,396
23,462
286,974
(1,528)
(1,894)
1,399
(404)
(2,427)
-1%
-15%
6%
-2%
-1%
300,341
15,751
32,549
30,752
379,393
302,308
16,513
32,528
31,283
382,632
(1,967)
(762)
21
(531)
(3,239)
-1%
-5%
0%
-2%
-1%
14,406
3,050
17,456
15,166
4,043
19,208
(760)
(993)
(1,752)
-5%
-25%
-9%
16,322
5,060
21,382
18,277
5,390
23,667
(1,955)
(330)
(2,285)
-11%
-6%
-10%
108,175
75,000
25,000
208,175
108,175
75,000
25,000
208,175
-
0%
0%
0%
0%
180,465
100,000
25,000
305,465
129,655
100,000
25,000
254,655
50,809
50,809
39%
0%
0%
20%
111,635
115,135
(3,500)
-3%
115,135
115,135
-
0%
2,002
1,118
885
79%
2,248
1,490
758
51%
15,250
639,065
15,250
645,860
(6,795)
0%
-1%
15,938
839,561
15,250
792,829
688
46,732
5%
6%
340
5
43
3
391
354
6
79
439
14
1
36
(3)
49
4%
11%
46%
0%
11%
478
7
88
3
575
484
7
90
581
6
2
(3)
6
1%
0%
2%
0%
1%
82,527
22,570
20,685
3,519
57,280
83,025
269,605
88,128
27,672
24,373
4,648
58
91,837
35,678
272,394
5,601
5,102
3,688
1,129
58
34,557
(47,347)
2,789
6%
18%
15%
24%
100%
38%
-133%
1%
112,552
41,211
33,353
5,315
78
91,371
109,002
392,881
121,986
39,796
34,988
6,656
84
133,071
45,400
381,982
9,435
(1,415)
1,635
1,341
6
41,700
(63,602)
(10,900)
8%
-4%
5%
20%
8%
31%
-140%
-3%
86
2
117,623
117,711
179
1
118,135
118,315
93
(1)
512
604
52%
-82%
0%
1%
151
2
121,635
121,789
244
1
121,635
121,881
93
(1)
92
38%
-67%
0%
0%
29,103
5,754
7,643
42,500
31,262
6,756
8,031
1
46,051
2,160
1,002
388
1
3,550
7%
15%
5%
100%
8%
40,406
9,030
11,157
60,593
42,828
9,008
10,712
1
62,549
2,422
(22)
(445)
1
1,956
6%
0%
-4%
100%
3%
14,008
1,909
13,000
4,609
1,573
1,398
94
36,590
26,524
2,615
15,372
4,362
1,334
4,876
19
55,102
12,517
707
2,372
(247)
(239)
3,478
(74)
18,512
47%
27%
15%
-6%
-18%
71%
-389%
34%
20,667
3,408
20,207
4,738
1,902
3,506
101
54,528
37,363
3,751
22,108
4,561
1,926
7,000
23
76,733
16,696
343
1,901
(177)
24
3,494
(77)
22,205
45%
9%
9%
-4%
1%
50%
-329%
29%
Subtotal Operating Expenses
466,797
492,301
25,504
5%
630,366
643,725
13,359
2%
Debt Service
Principal
Interest
Cost of issuance
Total Debt Service
55,045
95,255
150,300
55,045
94,012
149,057
(1,243)
(1,243)
0%
-1%
0%
-1%
55,045
95,255
150,300
55,045
94,012
149,057
(1,243)
(1,243)
0%
-1%
0%
-1%
617,097
641,358
24,261
4%
780,666
792,782
12,116
2%
21,968
4,502
58,895
-
Commonwealth grants and contract assistance
Investment Income
Use of Reserves
Total Revenues
EXPENSES
Operating Expenses
AERONAUTICS
Employee Payroll and Benefits
Materials, Supplies, Services
Office and Administrative Expenses
Construction and Maintenance
Total Aeronautics
HIGHWAY
Employee Payroll and Benefits
Materials, Supplies, Services
Office and Administrative Expenses
Construction and Maintenance
Grants, Subsidies, Contract Assistance
Paygo Maintenance
Snow & Ice
Total Highway
RAIL AND TRANSIT
Employee Payroll and Benefits
Office and Administrative Expenses
Grants, Subsidies, Contract Assistance
Total Rail and Transit
REGISTRY
Employee Payroll and Benefits
Materials, Supplies, Services
Office and Administrative Expenses
Construction and Maintenance
Total Registry
OFFICE OF THE SECRETARY
Employee Payroll and Benefits
Materials, Supplies, Services
Office and Administrative Expenses
Construction and Maintenance
Grants, Subsidies, Contract Assistance
Paygo Maintenance
Snow & Ice
Total Office of Programming and Planning
Total Operating Expenses and Debt Service
Net Revenue (Expense) before Transfers
Net Revenue (Expense)
21,968
4,502
58,895
Numbers shaded in green denote both a significant variance of more than 5% and a magnitude of dollar amount, more than $500,000. Explanation for variances are on the attached Budget Highlight
report.
This report is presented on the cash basis of accounting. See accompanying notes for further information.
C:\Users\brooksj\Desktop\Workspace\financials\[Operating FY13 FP9 Mar v2.xlsx]Report 1 Board
Massachusetts Department of Transportation
FY 2013 Third Quarter Report (July to March)
Massachusetts Transportation Trust Fund
SUMMARY
The attached Statement of Revenue and Expenses through Q3’13, ending March 31 details line item
variances in revenue and expense categories, which have resulted in total net revenue of $21.9 million.
Through March 2013, total revenue was $639.0 million, which is $6.8 million or 1% less than budget.
Total expenses were $617.1 million, or $24.3 million (4%) below budget. The major items contributing
to the operating surplus against the seasonally adjusted budget are: Paygo Maintenance (less than
budget by $38.0 million), Employee Payroll and Benefit costs ($20.4 million), Materials, Services, and
Supplies ($6.8 million), Office and Administrative expenses ($6.5 million). These positive variances,
which are explained more fully below, were offset by a Snow and Ice deficiency of $47.3 million. DOT
anticipates supplemental funding from the Legislature to recover Snow and Ice costs incurred over
budget.
NOTE: Each variance equal to or greater than 5% of budget AND is of a magnitude of $500,000 or more
is explained below.
REVENUE
Toll Revenue-Toll Collection:
Toll collection for Metropolitan Highway System (MHS) and Western Turnpike (WT) totaled $225.2
million and is under budget by $1.5 million or 1.0%. While this is an unfavorable variance it was
expected due to reduced toll usage as a result of Hurricane Sandy, the 2013 Blizzard that caused a twoday state of emergency and numerous snow storms causing cities and town across that state to call-off
school on three days. These meteorological events had a significant impact on toll usage more than a
normal season.
Toll Revenue-Departmental:
Departmental Revenue of $10.5 million has an unfavorable variance of $1.9 million or 15% under
budget. Departmental revenue is a combination of court fines and other miscellaneous revenues. Court
fines through March 2013 of $3.8 million are in line with anticipated revenue. However, other
miscellaneous revenues (towing, advertising, permit fees, reducible load permits, special hauling
permits, state police details and other miscellaneous items) fluctuate throughout the year and are
inherently less predictable. As of March 2013, $6.7 million has been collected in miscellaneous
revenues, well under budgeted revenue of $8.6 million. Miscellaneous revenues are currently projected
to end the fiscal year under budget by $762,000 or 5%.
Toll Revenue-Rental/Lease Income:
Rental/Lease Income of $25.8 million has a favorable variance of $1.4 million or 6% over budget. This
additional revenue is attributable to two large payments by Nextel in September associated with the
optional termination of a wireless communication agreement in the Ted Williams Tunnel ($975,000) and
Summer Tunnel ($618,000). While positive in terms of both cash flow and budget variance, the loss of
ongoing revenue from Nextel will be a consideration in future MassDOT budgets.
1
Non-Toll Departmental:
Non-toll Departmental revenue of $14.4 million has an unfavorable variance of $760,000 or 5% below
budget. The variance is due to the late execution implementing the fee for the Ignition Interlock Device
and the later than anticipated increase in the Irreducible load truck permit fees.
The Interlock Device fee was implemented in February instead of last summer. Further, it was
determined by our Legal office that the Interlock Device fee is considered Registry revenue and as such
must be deposited into the Commonwealth Transportation Fund (CTF). We are requesting to have
those funds returned to the Massachusetts Transportation Trust Fund (MTTF) through a supplemental
budget.
The Irreducible Load Truck Permit fee has yet to be implemented. The fee was approved on March 29th
and is now in the process of being programmed into the online permit system.
Non-Toll Rental/Lease Income:
Non-toll Rental/Lease Income of $3.1 million has an unfavorable variance of $993,000 or 25% below
budget. The variance is the result of unbudgeted rental credits owed to McDonalds by MassDOT for
environmental clean-up costs incurred and paid for by McDonalds on their MassDOT rental properties
located in Newton and Lexington. The credits of $2.3 million due McDonalds will be offset with rental
income in FYs 13, 14, and 15.
Commonwealth Trust Fund Transfer:
For FY’13, MassDOT is budgeted to receive $129.6 million from the CTF transfer for operations.
Additionally, we are expecting to receive $50.8 million in additional CTF transfer funds by fiscal year end
due to the Legislature approving supplemental funding for snow and ice operations in the amount of
$55.7 million. The additional revenue is offset by a 9C budget reduction of $4.9 million.
Investment Income:
Investment Income of $2 million reflects a favorable variance of $885,000 or 79% over budget. This $2
million earned through March includes both interest earnings on MassDOT cash balances as well as
interest earnings on debt service bank accounts held by the trustee. When the budget was established
for investment income, we included interest earnings on MassDOT cash balances only. Previously,
interest earnings on debt service bank accounts were netted within debt service payments in prior
years; this year, it’s been determined that these interest earnings should be included specifically in
Investment Income.
EXPENSES
Highway Division
Employee Payroll and Benefits:
The Highway Division has expended $82.5 million on Employee Payroll and Benefits through Q3 and has
a favorable variance of $5.6 million or 6% under budget, a positive variance that is due to delays in
hiring. At fiscal year-end we are forecasting spending of $112.5 million, which will be $9.4 million under
budget, a surplus resulting from unfilled vacancies.
Materials, Supplies, Services:
Spending for Materials, Supplies, and Services through Q3 is $22.6 million and reflects a favorable
variance of $5.1 million or 18% below budget. The positive variance is primarily due to a delay in billing
emanating from the State Police for Troop E charges. Through Q3’13 we had only received and
2
processed Troop E bills for services through January of 2013. However, in the final quarter of the fiscal
year, we anticipate spending will accelerate and the budget will be exceeded by $1.4 million, due to the
addition of troopers in Troop E that were not factored in to the original budget.
Office and Administrative Expenses:
Office and Administrative Expenses total $20.7 million through Q3 with a favorable variance of $3.7
million or 15% below budget. The positive variance can be attributed to lower than anticipated utility
costs. Office and Administrative Expenses are currently projected to end the fiscal year $1.6 million
below budget.
Construction and Maintenance:
Construction and Maintenance expenditures total $3.5 million through Q3 and are $1.1 million or 24%
below budget. Although maintenance expenditures should escalate during the fourth quarter of the
fiscal year as spring activities such as sweeping, mowing, and the litter removal programs are mobilized,
we are forecasting spending below budget by $1.3 million through the end of the fiscal year.
Paygo Maintenance:
The Highway Division has expended $57.3 million on Pay go Maintenance through Q3 and is $34.6
million or 38% under budget. The positive variance is occurring in the Metropolitan Highway System
(MHS) due to delays in awarding contracts. In order to accelerate the awarding of contracts, MassDOT
has transferred 30 employees from the Accelerated Bridge Program to the MHS to assist with
assembling bid documents. However, it should be noted that Western Turnpike and Tobin are spending
close to budget as of Q3. The overall forecast for year-end is to spend a total of $92.7 million, which is
still $40.4 million under budget.
Snow and Ice:
As of the close of Q3’13, Snow and Ice expenditures totaled $83.0 million, with an unfavorable variance
of $47.3 million or 133% over budget. This unfavorable variance is the result of the Blizzard of 2013 and
other significant snow storms. There were 23 Snow and Ice events during FY’13. The forecasted
spending on Snow and Ice operations for the full fiscal year is $109 million, which is $63.6 million over
budget. We are seeking supplemental funds from the Legislature in the amount of $55.7 million to
cover our non-toll Snow and Ice operating deficiency. We are not requesting supplemental funds for
snow and ice operations on toll roads, instead covering that budget shortfall with toll funds.
Registry
Employee Payroll and Benefits:
The Registry expended $29.1 million on Employee Payroll and Benefits and has a favorable variance of
$2.1 million or 7% due to delays in hiring although it anticipates filling a large portion of vacancies during
Q4. The Registry is forecast to spend a total of $40.4 million which will be $2.4 million under budget at
year end.
Materials, Supplies, Services:
Spending on Materials, Supplies, Services totaled $5.7 million through Q3 and is $1.0 million or 15%
below budget. The two major components of this expenditure category are credit card fees and license
production. Although spending is below the seasonally adjusted budget, it is anticipated that overall
spending in this category will exceed the budget by a nominal $22,000 by year end. This is due to credit
card expenses that are trending 20% higher than the previous fiscal year. DOT continues to encourage
customers to use online services, which results in increased credit card charges.
3
Office of the Secretary Departments
Employee Payroll and Benefits:
Employee Payroll and Benefits for the Office of the Secretary total $14 million through Q3 and is $12.5
million or 47% below budget. This is primarily due to the delay in transferring employees from capital to
operating. While some employees have been transferred off of capital, not all have been transferred.
Fiscal wants to ensure there is adequate non-toll revenue to cover the transferred employees. The yearend forecast is $20.7 million, or $16.7 million under budget. Fiscal is responsible for managing the
Employee Payroll and Benefits budget and variances.
Materials, Supplies, Services:
The Office of the Secretary has expended $1.9 million on Materials, Supplies, and Services and is
$707,000 or 27% under budget. The major reason for the positive variance is minimal spending in
Interdepartmental Service Agreements (ISA). For example, although we have entered in to an ISA with
the Inspector General’s Office for audit services, it has incurred minimal expenses this fiscal year. We
are forecasting total spending in this category of $3.4 million by fiscal year end, which is $380,000 under
budget. The positive variances are occurring in and being managed by the following areas within Office
of the Secretary: Chief Administrative Office, General Counsel, Real Estate and Development, and Fiscal.
Office and Administrative Expenses:
The Office of the Secretary has expended $13 million on Office and Administrative Expenses which is
indicative of a favorable variance of $2.4 million or 15% below budget. A major component in this
expenditure category is liquidity fees. Through March, we have paid six months of liquidity fees. The
third quarter payment was processed in April. We are forecasting spending $20.2 million in this
category with savings of $1.9 million. Although most divisions within the Office of the Secretary has an
Office and Administrative Expense budget, the major budget variances are occurring in and being
managed by the following divisions: Fiscal, Chief Administrative Office, and Real Estate and
Development.
Paygo Maintenance:
Paygo Maintenance spending at the end of the Q3 is $1.4 million and is $3.5 million or 71% below
budget. As noted above, the reduced spending is due to the delay in awarding contracts. We are
forecasting spending by year-end of $3.5 million, which is $3.5 million under budget. The positive
variances are primarily occurring in and being managed by the following divisions: Chief Administrative
Office, General Counsel, and Chief Information Office.
FULL YEAR TRENDS AND PROJECTIONS
Revenue Trends and Projections:
• Toll revenue is projected to be 1% under budget due Hurricane Sandy and numerous snow
events.
• Collection of toll violations is higher than the prior fiscal year. In FY’12, average monthly
revenue from violations was just under $600,000 per month while in FY’13, the monthly average
through March of 2013 is slightly over $850,000.
• Non-Toll revenue is projected to be lower than budgeted due to the delay in implementing fees
and the McDonald’s credit described above.
• The CTF Operations funding transfer is $50.8 million higher than budgeted due to supplemental
funding for snow and ice operations and offset by a 9C budget reduction.
4
Expense Trends and Projections:
• Operating expenses are projected to be $13.1 million or 2% below budget at year end for the
following major reasons;
o The Paygo Maintenance budget is forecast to be under budget by $43.9 million
o Employee Payroll and Benefits is forecast to be under budget by $28.7 million due to
delays in hiring and the transfer of employees from capital to operating
o Snow and ice spending is forecast to be over budget by $63.5 million.
5