# Stage 116 — Explicitly funded floor supplements

## Result

Nine of 27 cases meet both recipient cohorts' annual floors and the monthly supplement schedule: all nine use monthly owner-tax collection. They also have no recipient months below the corresponding monthly consumption floor.

All 27 cases meet annual spending floors and settle the incremental tax and transfer balances by the end of the horizon, within numerical tolerance. The 18 quarter-end/December cases nevertheless have overdue supplements and months below the monthly floor. Year-end totals therefore do not establish continuous purchasing-power protection.

## Declared design

The three stage-115 static schedules are used unchanged: 90%, 95% or 100% of each recipient cohort's control-year-1 real nonhousing consumption. Each annual schedule becomes twelve monthly entitlements. This reference is not a pre-automation baseline or an empirical living standard.

Owners pay the combined supplement assessment. Their declared tax response q is 0, 0.5 or 1; cash collection is monthly, quarter-end or December. Tax expense enters desired spending uniformly, separately from payment timing. Actual received supplements enter spendable income under the inherited 90% spending rule, not directly as consumption.

The supplemental treasury starts with zero cash, has no borrowing or external top-up, and pays available cash proportionally to outstanding cohort entitlements. Unpaid taxes and entitlements carry forward.

Priority is source income and bond redemption, personal interest, maintenance, owner levy, supplements, consumption, private principal and source equity purchases. This ordering is an experiment assumption. All cases share the baseline opening household and market-counterparty balances. Every payment has an actual cash payer and recipient.

## Timing at the 90% floor

These figures apply at q=0.5; the timing counts are identical across the three q values tested.

| Collection | Months with overdue supplements | Months below monthly floor: no personal debt | Months below monthly floor: personal debt |
| --- | ---: | ---: | ---: |
| Monthly | 0 | 0 | 0 |
| Quarter-end | 120 | 112 | 120 |
| December | 165 | 154 | 165 |

The monthly consumption floor is the annual real reference divided by twelve. Overdue-entitlement counts and actual below-floor consumption counts measure different outcomes.

## Cost to the payer

| Floor | Owners' cumulative real spending change at q=0.5 | At q=1 |
| --- | ---: | ---: |
| 90% | -1.97% | -3.94% |
| 95% | -2.37% | -4.73% |
| 100% | -2.79% | -5.59% |

These changes use undiscounted twenty-year spending and a matched zero-supplement baseline. At q=0, spending stays unchanged but the tax still reduces the owner's cash position. This is not a free policy. Ending cash and equity-unit changes are in the archive.

## Scope and limits

Funding is checked for the incremental supplement account only. Existing government benefits and fiscal support remain inherited. Outside income, dividends, prices and equity-purchase plans remain fixed. The result does not verify the entire government budget, investment response or macroeconomic sustainability.

Private debt is paid from actual cash and matched by the owner claim. Principal follows the source plan. The prototype does not optimize repayment, revalue assets or feed changed equity ownership into future dividends. Preserving a floor by construction under fixed income rules is a conditional feasibility demonstration, not empirical confirmation or policy optimization.

## Validation

Run:

```sh
python scripts/funded_floor_transfer_v116.py --output data/processed/funded_floor_transfer_v116.json
python scripts/test_funded_floor_transfer_v116.py
```

Seven tests cover zero-overlay baseline recovery, complete transaction replay with nonnegative cash and matched claims, treasury and arrears identities, annual-versus-monthly outcomes, a deliberately underfunded payer without backfill, grid/payer costs and archive reproduction. The adversarial funding case is separate from the 27 source-path scenarios: when the payer cannot afford the assessment, taxes and transfers remain unpaid.

[Annual paths and summaries](data/processed/funded_floor_transfer_v116.json) retain every case. Full 240-month tapes and transactions are reproducible through build(). The stage-115 schedule was checked against main. Original simulator files were unchanged; repository CI remains the merge gate.

## Next step

Measure the monthly scheme's tolerance to deterioration in the payer's cash and income, retaining separate collection, payment and consumption gates. Then connect redistribution to the annual corporate/government path and recompute investment and income feedback before claiming broader sustainability.