Synopsis As Introduced Creates the Budget Stabilization Act and amends the State Finance Act. Limits appropriations from the State's general funds in fiscal years when estimated general funds revenues exceed certain previous fiscal years' general funds revenues. Requires the State Comptroller to transfer from the General Revenue Fund into the Budget Stabilization Fund or Early Debt Retirement Fund an amount equal to the fiscal year's unappropriated general funds revenues. Establishes appropriation limits and a transfer schedule. Specifies the purpose of the Budget Stabilization Fund and requires that earnings on its investment remain in the Fund. Creates the Early Debt Retirement Fund as a special fund within the State treasury for payment of certain liabilities. Effective immediately.
Fiscal Note (Economic and Fiscal Commission)
SB 1757 would not increase or decrease any revenues of the State.
Fiscal Note (Office of the Comptroller)
There is no immediate fiscal impact because required transfers to the Budget Stabilization Fund and limitations on state expenditures do not take effect until after the State experiences growth in general revenue funds over 4%. However, using current estimated revenue levels for illustration purposes, a .5% and a 1% transfer into the Budget Stabilization Fund would be approximately $120 million and $240 million, respectively.
Governor Amendatory Veto Message In the Budget Stabilization Act, recommends the following changes: In addition to “appropriations”, provides that “transfers or diversions as required by law” be subject to certain budget limitations and transfers. Defines “estimated general funds revenues”. Deletes references to the Early Debt Retirement Fund. Provides that the balance of the Budget Stabilization Fund may not exceed 5% (instead of 4%) of the total of general funds revenues estimated for that fiscal year. Provides that, if the balance of the Budget Stabilization Fund exceeds 5% of the total estimated general funds, the Comptroller shall make monthly transfers to the Fund only if certain liabilities exist. In the State Finance Act, recommends the following changes: Deletes provisions creating the Early Debt Retirement Fund. Provides that moneys may be transferred from the Budget Stabilization Fund to the General Revenue Fund in order to meet cash flow deficits (instead of just “deficits”). Effective immediately.