SJR 025 Creates Budget Reserve Fund to provide moneys for financial emergencies and natural disasters
LR Number:S1707.01T Fiscal Note:1707-01
Last Action:05/18/99 - Delivered to Secretary of State Journal page:S1586
Effective Date:Contingent
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Current Bill Summary

SJR 25 - This proposed constitutional amendment combines the Cash Operating Reserve Fund and the Budget Stabilization Fund in a new Budget Reserve Fund within the State Treasury.

Moneys in the Budget Reserve Fund may be used when there is a revenue shortfall or when there is a disaster requiring such expenditures. The Governor must declare an emergency and request an emergency appropriation. No more than one-half the moneys in the fund may be appropriated for budget stabilization purposes at any one time and the appropriation must be approved by two-thirds of the members of each house.

One-third of the amount transferred from the Budget Reserve Fund plus the interest that would have otherwise been earned shall stand appropriated to the fund for each of the next three years until the full amount has been paid.

If the fund balance exceeds 7.5% of net general revenue and the excess was not appropriated by the General Assembly, the excess amount shall be transferred to general revenue. If the excess does include appropriated funds, such moneys shall remain in the fund until the balance reaches 10%, at which time the Commissioner of Administration shall transfer that amount over 10% to general revenue.

If the fund balance is less than 7.5%, the difference shall stand appropriated to the fund as of July 15 of the following fiscal year.