Massachusetts Department of Transportation
Statement of Revenue and Expenses - Actual vs. Budget
For the Fiscal Year 2013 Through Period Ending December 31, 2012
Report ID: BUD-001B-MTTF
Run Date: 01/15/2013
Massachusetts Transportation Trust Fund
(000's = Thousands)
Year to Date (YTD)
July - December
Variance
Favorable /
(Unfavorable)
Seasonally
Adjusted Budget
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
13 Accounting Periods
Budget Fiscal Year
YTD Actual +
Projected
%
Variance
Favorable /
(Unfavorable)
Annual Budget
%
156,294
6,258
19,309
15,737
197,597
154,707
7,859
17,588
15,733
195,887
1,587
(1,601)
1,721
4
1,710
1%
-20%
10%
0%
1%
306,791
16,288
33,280
31,221
387,579
302,308
16,513
32,528
31,283
382,632
4,483
(225)
752
(62)
4,947
1%
-1%
2%
0%
1%
11,199
2,118
13,317
12,055
2,695
14,750
(855)
(577)
(1,432)
-7%
-21%
-10%
16,657
4,483
21,140
18,277
5,390
23,667
(1,620)
(907)
(2,527)
-9%
-17%
-11%
74,605
50,000
25,000
149,605
74,605
50,000
25,000
149,605
-
0%
0%
0%
0%
124,777
100,000
25,000
249,777
129,655
100,000
25,000
254,655
(4,878)
(4,878)
-4%
0%
0%
-2%
106,135
113,135
(7,000)
-6%
115,135
115,135
-
0%
1,509
745
764
103%
2,814
1,490
1,324
89%
15,250
483,413
15,250
489,371
(5,958)
0%
-1%
15,250
791,696
15,250
792,829
(1,133)
0%
0%
225
3
38
266
226
5
54
285
1
1
16
18
1%
25%
29%
0%
0%
0%
0%
6%
471
7
90
568
484
7
90
581
13
13
3%
0%
0%
0%
0%
0%
0%
2%
55,910
14,118
11,968
1,918
42,152
10,924
136,990
59,002
18,435
15,995
3,107
39
59,906
21,629
178,113
3,092
4,316
4,028
1,189
39
17,754
10,705
41,124
5%
23%
25%
38%
100%
30%
49%
23%
113,497
40,836
31,869
6,374
45
100,491
60,642
353,755
121,987
39,796
34,987
6,656
84
133,071
45,400
381,982
8,490
(1,040)
3,118
282
39
32,581
(15,242)
28,227
7%
-3%
9%
4%
46%
24%
-34%
7%
65
1
111,827
111,892
122
1
112,635
112,758
57
-
240
1
121,635
121,877
244
1
121,635
121,881
4
-
808
866
47%
0%
10%
0%
1%
0%
0%
1%
4
2%
0%
5%
0%
0%
0%
0%
0%
19,564
3,570
5,024
28,158
21,327
4,504
5,355
1
31,187
1,763
934
332
1
3,029
8%
21%
6%
100%
0%
0%
0%
10%
40,909
8,893
11,697
1
61,499
42,828
9,008
10,712
1
62,549
1,919
115
(985)
1
1,049
4%
1%
-9%
50%
0%
0%
0%
2%
8,993
1,175
8,226
765
944
722
31
20,856
17,567
1,734
10,194
1,204
889
3,251
7
34,845
8,575
559
1,968
439
(55)
2,528
(25)
13,990
49%
32%
19%
36%
-6%
78%
-366%
40%
22,236
3,048
21,107
4,553
1,905
4,472
61
57,383
37,363
3,751
22,108
4,561
1,926
7,000
23
76,733
15,127
703
1,001
7
21
2,528
(37)
19,350
40%
19%
5%
0%
1%
36%
-159%
25%
298,162
357,189
59,026
17%
595,082
643,725
48,643
8%
47,542
47,542
47,078
47,078
(463)
(463)
0%
-1%
0%
-1%
55,045
94,012
149,057
55,045
94,012
149,057
-
0%
0%
0%
0%
Total Operating Expenses and Debt Service
345,704
404,267
58,563
14%
744,139
792,782
48,643
6%
Net Revenue (Expense) before Transfers
137,709
85,104
47,557
-
-
-
-
-
137,709
85,104
47,557
-
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
Grants, Subsidies, Contract Assistance
Pay Go Maintenance
Snow & Ice
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
Materials, Supplies, Services
Office and Administrative Expenses
Construction and Maintenance
Grants, Subsidies, Contract Assistance
Pay Go Maintenance
Snow & Ice
Total Rail and Transit
REGISTRY
Employee Payroll and Benefits
Materials, Supplies, Services
Office and Administrative Expenses
Construction and Maintenance
Grants, Subsidies, Contract Assistance
Pay Go Maintenance
Snow & Ice
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
Subtotal Operating Expenses
Debt Service
Principal
Interest
Cost of issuance
Total Debt Service
Transfers In
Transfers Out
Net Revenue (Expense)
-
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.
S:\MassHighway\IT\Documentation\BrooksJ\WebWork_Transfer\_InfoCenter\MTTF\[Copy of Operating FY13 FP6 Dec v4 FINAL.xlsx]Report 1 Board
Massachusetts Department of Transportation
FY 2013 Second Quarter Report (July to December 2012)
Massachusetts Transportation Trust Fund
Statement of Revenue and Expenses – Actual vs. Budget – for the Fiscal Year 2013 Through Q2 Period
Ending December 31, 2012
The attached Statement of Revenue and Expenses through December 31, 2012 details line item
variances which have resulted in net revenues of $137.7 million. On a seasonally adjusted basis, we
expected an $85.1 million surplus which would be spent down during the last two quarters of the fiscal
year. The positive variance by $58.6 million on top of the $85.1 million is primarily the result of both
Paygo Maintenance money generated by the tolled roads not being spent as well as under-spending
Snow & Ice monies due to a mild winter start. Total revenue, however, is trending to budget.
It is considered within MassDOT’s operating budget that a variance is significant if it equals or exceeds
5% budget AND is of a magnitude of $500,000 or more. Each such variance is explained below.
REVENUE
Toll Revenue-Departmental:
Departmental Revenue has an unfavorable variance of $1.6 million or 20% under budget. Departmental
revenue is a combination of court fines and other miscellaneous revenues. While court fines through
December 2012 of $2.4 million are in line with anticipated revenue, miscellaneous revenues (towing,
advertising, permit fees, reducible load permits, special hauling permits, state police details and other
miscellaneous revenue items) have been under-collected. While these fees certainly fluctuate
throughout the year, as of December 2012, $3.8 million has been collected in miscellaneous revenues,
which is well under the anticipated revenue of $5.5 million. Because of the variable nature of the
miscellaneous revenues, there is not a predictable revenue stream. However, based on historical trends
of monthly revenue receipts, it is likely that the variance will be closed in the third and fourth quarters
of the fiscal year.
Toll Revenue-Rental/Lease Income:
Rental/Lease Income has a favorable variance of $1.7 million or 10% over budget. A portion of the
additional revenue is attributable to two large payments by Nextel in September associated with the
termination of a wireless communication agreement in the Ted Williams Tunnel ($975,000) and Sumner
Tunnel ($618,000). While this variance indeed is favorable in this report, we will make every effort to
replace this stream of income, although given the consolidations that have taken place among carriers,
this will prove to be difficult.
1
Non-toll Departmental:
Departmental revenue has an unfavorable variance of $855,000 or 7% below budget. The variance is
due to the late execution of the fee increases for the Ignition Interlock Device Fee and the Irreducible
load truck permit fees. The collection of the revised fees are expected to start in February and March.
Non-Toll Rental/Lease Income:
Rental/Lease Income has an unfavorable variance of $577,000 or 21% below budget. The variance is the
result of 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 grants and contract assistance:
Commonwealth grants and contract assistance has an unfavorable variance of $7 million or 6% under
budget. Included in this category are the allocations to the Massachusetts Transportation Trust Fund
from the Motor Vehicle Safety Inspection Trust Fund, which are delayed based on the cash flow needs of
the Safety Inspection program.
Investment Income:
Investment Income is a favorable variance of $764,000 or 103% over budget. The variance in
investment income relates to the presentation of interest earnings on the MassDOT financial report.
The annual budget of $1.49 million relates to the interest earnings on MassDOT cash balances. The
actual investment income through December of $1.5 million includes both interest earnings on
MassDOT cash balances as well as interest earnings on debt service accounts held at the fiscal agent,
which is restricted to pay debt service. This budget will be corrected in the next fiscal year to include
investment income from debt service and cash balances.
EXPENSES
Highway Division
Employee Payroll and Benefits:
Employee Payroll and Benefits has a favorable variance of $3.1 million or 5% under budget due to delays
in hiring.
Materials, Supplies, Services:
Materials, Supplies, and Services has a favorable variance of $4.3 million or 23% under budget. This is
primarily due to a delay in billing that we receive from the State Police for Troop E charges. As of
December 31st we had only processed bills through September of 2012. We are pressing Troop E to
send us its bills more quickly going forward.
2
Office and Administrative Expenses:
Office and Administrative Expenses has a favorable variance of $4 million or 25% under budget. Utilities
are funded out of this spending category, and many of the Highway District offices have large favorable
variances at the end of the second quarter. Although generally the Districts are current in processing
their utility bills, there are delays in the receipt of the bills following the close of the month.
Additionally, utility costs were down because maintenance depots that would normally be open for
snow and ice operations, were only open minimally in the first two quarters. Also funded in this
category are employee related expenses, which are down due to a delay in the hiring plan.
Construction and Maintenance:
Construction and Maintenance has a favorable variance of $1.2 million or 38% below budget. The
Highway purchased less than anticipated sand and salt for the tolled roads in the first two quarters.
Paygo Maintenance:
Paygo Maintenance has a favorable variance of $17.8 million or 30% under budget. Western Turnpike
and Tobin are spending close to budget as of the second quarter. However, the Metropolitan Highway
System (MHS) is significantly under budget due to delays in getting contracts out. Recently, MassDOT
transferred 30 employees from the Accelerated Bridge Project to the MHS to assist with putting
together bid documents and accelerate the award of contracts.
Snow and Ice:
As of December 31st, the Snow and Ice budget had a favorable variance of $10.7 million or 49%. Since
the beginning of Q3’13 - which is not reflected in this budget report - that positive variance has since
been depleted, and as of 2/14/13 we have expended $60.7 million against a budget of $45.4 million.
Additionally, MassDOT has been assisting cities and towns with snow removal following the Blizzard of
2013. We have informed Administration and Finance, the Senate and the House of our current
deficiency and that MassDOT requires supplemental funding.
Registry
Employee Payroll and Benefits:
Employee Payroll and Benefits has a favorable variance of $1.8 million or 8% due to delays in hiring. As
such, and in order to supplement its workforce, the Registry utilized less expensive college interns
during the month of December.
3
Materials, Supplies, Services:
Materials, Supplies, Services has a favorable variance of $934,000 or 21% as of the second quarter due
to delays in billing for credit card fees. Credit card fees related to Registry online transactions are one of
the major budgeted items in this spending category. MassDOT has received and processed four months
of bills for credit card fees as of December. As of today, we have processed all credit card bills through
December.
Office of the Secretary
Employee Payroll and Benefits:
Employee Payroll and Benefits has a favorable variance of $8.6 million or 49% below budget. This is due
to the delay in transferring employees from capital to operating. While some employees have been
transferred off of capital, not all that are planned to be transferred have actually been transferred. The
reason for this is that Fiscal wants to ensure there is adequate non-toll revenue to cover the transferred
employees when the transfer takes place.
Materials, Supplies, Services:
Materials, Supplies, and Services has a favorable variance of $559,000 or 32% under budget. The
majority of the variance can be attributed to under-spending by the Fiscal Office for budgeted
consultant services.
Office and Administrative Expenses:
Office and Administrative Expenses has a favorable variance of $2 million or 19% below budget. A major
component in this expenditure category is for liquidity fees. Through December, we have paid the first
quarter in liquidity fees. The second quarter payment was processed in January which will make this
variance less positive in future FY’13 quarters.
Paygo Maintenance:
PayGo Maintenance has a favorable variance of $2.5 million or 78% below budget. As noted above, the
reduced spending is due to the delay in awarding contracts.
Full Year Trends and Projections:
Total Department-wide revenue for all of FY’13 is projected to be $1.1 million under budget. There are
several major contributing factors to the reduction in forecast revenue. First, as noted above we
anticipate less revenue for non toll Departmental Revenue because of delays in implementing fee
increases for Interlock Devices and Irreducible load permits. Second, due to a rent credit from
McDonald’s as described above, we anticipate less non toll Rent/Lease Income. Lastly, a 9C budget
4
reduction of $4.87 million will be imposed in the second half of the fiscal year, reducing our
Commonwealth Trust Fund Transfer. These decreases in revenue are offset by an anticipated increase
of $4.9 million for toll revenue and $1.3 million for investment income. The increase in toll revenue can
be attributed to violations which are considerably higher than last fiscal year. This is likely due to a new
program that was implemented at the end of last fiscal year to pursue out of state violations.
FY’13 Department-wide operating expenses are projected to be $48.6 million or 6% below budget at
year end for the following major reasons. The snow and ice budget is currently forecast to go over by
$15.2 million. This forecast will be revised in the next quarter. However, the Paygo Maintenance
budget is forecast to be under budget by $35.1 million as the result of delays in advertising and
contracting. Employee payroll and benefits is forecast to be under budget by $25.5 million due to delays
in hiring and the transfer of employees from capital to operating.
At fiscal year end, MassDOT is forecasting net excess revenue over expenses to be $47.6 million. This is
the result of operating expenses forecast to be under budget by $48.6 million, as well as revenue
projected to be under budget by $1.1 million. The primary reason for projected spending below budget
is delays in advertising and contracting for major capital projects, resulting in a lower than anticipated
Paygo Maintenance forecast. The year-end net revenue balance is primarily restricted toll funds and will
be rolled forward to a reserve account for future use on toll capital projects.
5