2002 Legislation
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HOUSE BILL NO. 701 – Budget/money transfer/General Fund

HOUSE BILL NO. 701

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Daily Data Tracking History



H0701.....................................................by APPROPRIATIONS
BUDGET - MONEY TRANSFER - Stating findings of the Legislature regarding the
financial situation for fiscal year 2002; transferring moneys from the
Capitol Endowment Income Fund to the General Fund; directing the State
Treasurer to deposit the tobacco settlement payment into the General Fund;
and authorizing the Board of Examiners to access Permanent Building Funds.
                                                                        
02/28    House intro - 1st rdg - to printing
03/01    Rpt prt - to 2nd rdg
03/04    2nd rdg - to 3rd rdg
03/05    3rd rdg - PASSED - 63-4-3
      AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Black,
      Block, Boe, Bolz, Bradford, Bruneel, Campbell, Clark, Collins, Crow,
      Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20),
      Gagner, Gould, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet,
      Jones, Kellogg(Duncan), Kendell, Kunz, Lake, Langford, Loertscher,
      Martinez, Meyer, Montgomery, Mortensen, Pearce, Pischner, Pomeroy,
      Raybould, Ridinger, Roberts, Robison, Sali, Schaefer, Sellman,
      Shepherd, Smith(23), Smylie, Stevenson, Stone, Tilman, Trail,
      Wheeler, Wood, Young, Mr. Speaker
      NAYS -- Cuddy, McKague, Moyle, Smith(33)
      Absent and excused -- Callister, Hadley, Mader
    Floor Sponsor - Bell
    Title apvd - to Senate
03/06    Senate intro - 1st rdg - to Fin
03/07    Rpt out - rec d/p - to 2nd rdg
03/08    2nd rdg - to 3rd rdg
03/14    3rd rdg - PASSED - 34-1-0
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure,
      Geddes, Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia,
      Little, Lodge, Marley, Noh, Richardson, Risch, Sandy, Sims, Sorensen,
      Stegner, Stennett, Thorne, Wheeler, Williams
      NAYS -- Schroeder
      Absent and excused -- None
    Floor Sponsor - Cameron
    Title apvd - to House
03/14    To enrol
03/15    Rpt enrol - Sp signed
    Pres signed
03/15    To Governor
03/20    Governor signed
         Session Law Chapter 156
         Effective: 03/20/02

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 701
                                                                        
                                BY APPROPRIATIONS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO A BALANCED STATE BUDGET FOR FISCAL YEAR 2002; STATING FINDINGS  OF
  3        THE  LEGISLATURE  REGARDING  THE FINANCIAL SITUATION FOR FISCAL YEAR 2002;
  4        TRANSFERRING MONEYS FROM THE CAPITOL ENDOWMENT INCOME FUND TO THE  GENERAL
  5        FUND; DIRECTING THE STATE TREASURER TO DEPOSIT THE TOBACCO SETTLEMENT PAY-
  6        MENT  INTO  THE GENERAL FUND; AUTHORIZING THE BOARD OF EXAMINERS TO ACCESS
  7        PERMANENT BUILDING FUNDS AND REQUIRING ANY MONEYS REMAINING IN THE  PERMA-
  8        NENT BUILDING FUND AFTER AUTHORIZED TRANSFERS TO BE EXPENDED IN ACCORDANCE
  9        WITH  THE  GOVERNOR'S RECOMMENDED CONTINGENCY PLAN; AND DECLARING AN EMER-
 10        GENCY.
                                                                        
 11    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 12        SECTION 1.  The Legislature finds that the current economic situation fac-
 13    ing the state of Idaho, and underscored by revenue collections thus far in the
 14    fiscal year, warrants certain prudent and necessary steps to ensure a balanced
 15    budget for fiscal year 2002.
                                                                        
 16        SECTION 2.  Notwithstanding the provisions of Section 67-1611, Idaho Code,
 17    there is hereby appropriated, and the State Controller is directed  to  trans-
 18    fer, the sum of $22,000,000 from the Capitol Endowment Income Fund to the Gen-
 19    eral Fund.
                                                                        
 20        SECTION 3.  Notwithstanding the provisions of Section 67-1801, Idaho Code,
 21    the  State  Treasurer  is hereby directed to deposit into the General Fund the
 22    next scheduled tobacco payment distributed to the state of Idaho  pursuant  to
 23    the Master Settlement Agreement. Such payment is estimated to be $18,000,000.
                                                                        
 24        SECTION 4.  Notwithstanding the provisions of Section 57-1108, Idaho Code,
 25    the  Idaho  State  Board  of Examiners is hereby authorized to transfer moneys
 26    from the Permanent Building Fund to the General Fund as may  be  necessary  to
 27    balance  General  Fund  revenues with General Fund expenditures for the period
 28    July 1, 2001, through June 30, 2002. Any transfers from the Permanent Building
 29    Fund for the purposes of this section shall  not  exceed  $80,000,000.  Moneys
 30    remaining  in  the  Permanent  Building Fund after any transfers authorized by
 31    this section, shall be expended, as moneys allow,  for  approved  projects  in
 32    priority order in accordance with the Governor's recommended contingency plan.
                                                                        
 33        SECTION  5.  An  emergency  existing  therefor,  which emergency is hereby
 34    declared to exist, this act shall be in full force and effect on and after its
 35    passage and approval.

Statement of Purpose / Fiscal Impact




Statement of Purpose
RS12140C1
This bill provides a $120 million framework necessary to ensure a balanced budget for Fiscal Year 2002. Included are sections that transfer monies from the Capitol Endowment Income Fund ($22 million) and the Tobacco Settlement payment ($18 million), as well as a contingency plan if needed, to authorize the Board of Examiners to access up to $80 million in Permanent Building Funds.
 
Fiscal Note
Revenue collections through November for this current fiscal year have been consistently below projections and have necessitated spending holdbacks and action to negate the transfer to the Budget Stabilization Fund. December and January collections were also short of projections a combined $37 million and have generated concern about the state’s ability to meet projections for the balance of the fiscal year.

Sections 2 and 4 of this bill would provide a total of $40 million to the General Fund to offset the December and January revenue shortfalls, and essentially bring the budget into balance through January. Section 2 transfers $22 million from the Capitol Endowment Income Fund into the General Fund, and section 4 transfers the $18 million spring Tobacco Settlement payment into the General Fund.

As for the balance of the fiscal year, if revenues continue to miss the mark, section 5 of the bill will enable the Board of Examiners to access up to $80 million in Permanent Building Fund monies that were funded last year largely from the General Fund surplus. If the Board of Examiners does deem it necessary to transfer Permanent Building Funds to the General Fund, this legislation will ensure that of the remaining monies in the Permanent Building Fund, the projects that go forward will be in priority order as recommended in the Governor’s contingency spending plan for these monies. Those projects and the priority sequence are attached in page two of the fiscal note. The need for this contingency plan section will likely not come into focus until after the revenue collections for April become known. April is by far the largest revenue month for the state.

This Legislation will ensure that the Board of Examiners, if faced with revenue shortfalls this spring, has another option available to them other than reducing further the spending levels for Public Schools and the rest of state agencies and institutions. This legislation also provides the budget balancing tools and framework to eliminate the need for a special session to address budget shortfalls.

Contact: Sen. Dean Cameron Rep. Maxine Bell

Statement of Purpose/Fiscal Note Bill No. H701