1998 Legislation
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HOUSE BILL NO. 443, As Amended – Budget Stabilization Fund

HOUSE BILL NO. 443, As Amended

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Daily Data Tracking History



H0443aa............................................................by CLARK
                            Requested by: Clark
BUDGET STABILIZATION FUND - Amends existing law to create the Budget
Stabilization Fund in place of the Budget Reserve Account, to provide that
the State Controller shall annually transfer moneys from the General Fund
to the Budget Stabilization Fund subject to certain criteria, to provide
that the transfer of funds from the General Fund to the Budget
Stabilization Fund may be reduced and to limit the appropriation of moneys
from the Budget Stabilization Fund.

01/12    House intro - 1st rdg - to printing
01/12    Rpt prt - to Approp
02/06    Rpt out - to Gen Ord
02/11    Rpt out amen - to engros
02/12    Rpt engros - 1st rdg - to 2nd rdg as amen
02/13    2nd rdg - to 3rd rdg as amen
02/18    3rd rdg as amen - PASSED - 48-16-6
      AYES -- Alltus, Barraclough, Barrett, Bell, Bivens, Black(15),
      Black(23), Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy,
      Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
      Hadley, Hansen, Hornbeck, Jones(9), Kellogg, Kempton, Kendell,
      Kjellander, Kunz, Lake, Linford, Loertscher, Mader, McKague,
      Mortensen, Newcomb, Reynolds, Sali, Schaefer, Stevenson, Taylor,
      Tilman, Tippets, Wheeler, Wood, Zimmermann
      NAYS -- Bieter, Boe, Henbest, Jaquet, Judd, Marley, Meyer, Miller,
      Pischner, Pomeroy, Richman, Ridinger, Robison, Stoicheff, Trail,
      Watson
      Absent and excused -- Crane, Jones(22), Jones(20), Stone, Stubbs,
      Mr Speaker
    Floor Sponsor - Clark
    Title apvd - to Senate
02/19    Senate intro - 1st rdg as amen - to Fin
03/11    Rpt out - rec d/p - to 2nd rdg as amen
03/12    2nd rdg - to 3rd rdg as amen
03/18    3rd rdg as amen - PASSED - 28-5-2
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Deide, Frasure, Geddes, Hawkins, Ipsen,
      Keough, King, Lee, Noh, Parry, Richardson, Riggs, Risch, Sandy,
      Sorensen, Sweeney, Thorne, Twiggs, Wheeler
      NAYS--Dunklin, McLaughlin, Schroeder, Stennett, Whitworth
      Absent and excused--Hansen, Ingram
    Floor Sponsor - Ipsen
    Title apvd - to House
03/19    To enrol - rpt enrol - Sp signed
    Pres signed - to Governor
03/24    Governor signed
         Session Law Chapter 290
         Effective: 07/01/99

Bill Text


H0443


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                              HOUSE BILL NO. 443, As Amended

                                         BY CLARK

 1                                        AN ACT
 2    RELATING TO THE BUDGET STABILIZATION  FUND;  AMENDING  SECTION  57-814,  IDAHO
 3        CODE,  TO  CREATE  THE  BUDGET  STABILIZATION  FUND IN PLACE OF THE BUDGET
 4        RESERVE ACCOUNT, TO TRANSFER ALL FUNDS IN THE BUDGET  RESERVE  ACCOUNT  AT
 5        THE  DATE  OF  APPROVAL OF THIS ACT INTO THE BUDGET STABILIZATION FUND, TO
 6        PROVIDE THAT THE STATE CONTROLLER SHALL ANNUALLY TRANSFER MONEYS FROM  THE
 7        GENERAL FUND TO THE BUDGET STABILIZATION FUND SUBJECT TO CERTAIN CRITERIA,
 8        TO  PROVIDE THAT THE TRANSFER OF FUNDS FROM THE GENERAL FUND TO THE BUDGET
 9        STABILIZATION FUND MAY BE REDUCED, TO LIMIT THE APPROPRIATIONS  OF  MONEYS
10        FROM THE BUDGET STABILIZATION FUND; AND PROVIDING AN EFFECTIVE DATE.

11    Be It Enacted by the Legislature of the State of Idaho:

12        SECTION  1.  That  Section  57-814, Idaho Code, be, and the same is hereby
13    amended to read as follows:

14        57-814.  BUDGET  RESERVE  ACCOUNT      STABILIZATION  FUND
15    .    (1)    There is hereby created in the  agency asset
16    fund   state treasury  the budget  reserve  account,  to
17    which  shall  be  deposited  such  appropriations as may be made by law 
18     stabilization fund for the  purpose  of  meeting  general  fund  revenue
19    shortfalls  and  to  meet  expenses incurred as the result of a major disaster
20    declared by the governor. All moneys in the budget reserve account at the date
21    of approval of this act shall be transferred to the budget stabilization  fund
22    .  Interest earnings from the investment of moneys in this  account
23      fund by the state treasurer  shall be credited to the  per-
24    manent  building  account  subject to the provisions of section 67-1210, Idaho
25    Code.
26         (2)  Subject to the requirements of section 63-3203, Idaho Code, the
27    state controller shall annually transfer moneys from the general fund  to  the
28    budget stabilization fund subject to the following criteria:
29        (a)  An  amount  equal  to  one percent (1%) of the total original general
30        fund appropriations made for the fiscal year just ending, shall be  trans-
31        ferred  to  the  budget  stabilization fund in any year in which the state
32        controller certifies that the receipts to the general fund  for  the  just
33        concluded  fiscal  year  have exceeded the receipts of the previous fiscal
34        year by more than four percent (4%). The state controller shall  make  the
35        transfers  in four (4) equal amounts during September, December, March and
36        June of the next fiscal year.
37        (b)  The amount of moneys in  the  budget  stabilization  fund  shall  not
38        exceed  five percent (5%) of the total general fund appropriations for the
39        fiscal year beginning July 1, following the legislative session.
40        (c)  The state controller shall transfer moneys in the  budget  stabiliza-
41        tion fund in excess of the limit imposed in subsection (2)(b) of this sec-
42        tion to the general fund.
43        (3)  If  a  majority  of  the  membership of each house of the legislature


                                      2

 1    adopt a concurrent resolution  requesting the amount of the transfer specified
 2    in subsection (2) of this section  be  reduced,  the  state  controller  shall
 3    reduce the amount of the transfer.
 4        (4)  Appropriations  of  moneys  from the budget stabilization fund in any
 5    year shall be limited to fifty  percent  (50%)  after  the  fund  balance  has
 6    reached five percent (5%). 

 7        SECTION  2.  This  act shall be in full force and effect on and after July
 8    1, 1999.

Statement of Purpose / Fiscal Impact


    





                           STATEMENT OF PURPOSE
                                 RS 07423
    
    The purpose of this piece of legislation is to provide a 
    systematic method for annually setting aside funds to be used 
    to minimize the need for budget cuts or tax increases. It 
    provides for the transfer of funds currently in the Budget 
    Reserve Account to the Budget Stabilization Fund. It provides 
    that the Legislature may, with a 2/3 vote of both bodies, 
    limit transfers from the General Fund to the Budget 
    Stabilization Fund. The Budget Stabilization Fund will come 
    into effect when the receipts in the General Fund for the 
    just concluded fiscal year exceed the receipts of the 
    previous fiscal year by more than 4%.
    
                                FISCAL NOTE
    
    Assuming a fiscal year 1999 original General Fund 
    appropriation of $1.50 billion, the State Controller will 
    transfer $15 million from the General Fund to the Budget 
    Stabilization Fund in four equal installments during fiscal 
    year 2000. Transfers will not be made when the balance in the 
    Budget Stabilization Fund reaches 5% of the next original 
    General Fund appropriation.
    
    CONTACT: Representative Jim Clark
             208-334-2000
             Senator Grant Ipsen
             208-334-2000
             STATEMENT OF 
             PURPOSE/FISCAL NOTE
             
    
    H 443