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Officials say CUC receivable to retirement fund unlikely to be collectible soon

6403114 · October 22, 2025

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Summary

During the joint committee hearing, finance officials confirmed outstanding receivables from component units, including a CUC balance owed to the retirement settlement fund, and said collection prospects are limited while those entities struggle financially.

Committee members asked whether the commonwealth could pursue receivables from component units to help meet retirement settlement obligations. The secretary of finance said outstanding receivables remain on the books but collection prospects are uncertain because many component units are also under financial strain.

Representative Marissa Flores identified a receivable from the Commonwealth Utilities Corporation (CUC) described in the hearing as roughly $3.4 million (the transcript references "$33,000,000, $3,400,000 and change" in a committee exchange asking whether CUC would pay). The finance secretary replied that CUC’s chief financial officer had provided ‘‘very concerning news’’ about CUC’s fiscal condition and said she did not expect CUC to make large payments in the near term. The secretary said the executive branch continues to prioritize utilities in negotiations and explore options such as credit assistance to stabilize utility finances and potentially free cash for receivable payments.

Nut graf: The committee asked the finance secretary to pursue receivables from component units and to report back with a full receivables list. The secretary said such reports exist and she would request them from NMIRF (the retirement fund staff) and provide them to the committee.

Supporting detail: - The finance secretary said component-unit receivables remain but did not provide a consolidated total in the hearing; she said a FY22 financial statement and other reports exist and that staff would supply requested details. - The secretary recommended committee members attend CUC board meetings to hear the utility’s internal condition; she said efforts to negotiate a utilities memorandum of agreement have been difficult. - The committee made an official request for a report on total receivables owed to the commonwealth and the retirement fund.

Ending: Finance said the receivable balances will remain until a sustainable collection mechanism is identified; the committee asked for written documentation of balances and a plan for collection where feasible.