2003 Legislation
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SENATE BILL NO. 1103 – General fund surplus, transfers

SENATE BILL NO. 1103

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S1103.............................................................by EDUCATION
GENERAL FUND - SURPLUS - Amends and adds to existing law to provide for a
transfer of moneys when there is a surplus over a certain amount in the
General Fund to the Budget Stabilization Fund, the Idaho Millennium Fund and
the Public School Holdback Protection Fund; to create the Public School
Holdback Protection Fund; to provide the purpose for which the Public School
Holdback Protection Fund may be used; and to define "public schools."
                                                                        
02/10    Senate intro - 1st rdg - to printing
02/11    Rpt prt - to Fin

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1103
                                                                        
                                   BY EDUCATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO GENERAL FUND SURPLUS; AMENDING SECTION 57-814, IDAHO CODE, TO PRO-
  3        VIDE A FORMULA FOR TRANSFER OF MONEYS OF A GENERAL  FUND  SURPLUS  OVER  A
  4        CERTAIN AMOUNT TO THE BUDGET STABILIZATION FUND, THE IDAHO MILLENNIUM FUND
  5        AND  THE PUBLIC SCHOOL HOLDBACK PROTECTION FUND; AMENDING SECTION 67-1801,
  6        IDAHO CODE, TO PROVIDE THAT THE  IDAHO  MILLENNIUM  FUND  MAY  CONSIST  OF
  7        MONEYS  TRANSFERRED  TO  IT AS PROVIDED IN SECTION 57-814, IDAHO CODE; AND
  8        AMENDING CHAPTER 9, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
  9        33-907, IDAHO CODE, TO CREATE THE PUBLIC SCHOOL HOLDBACK  PROTECTION  FUND
 10        IN  THE STATE TREASURY, TO PROVIDE SOURCES OF THE FUND AND THE PURPOSE FOR
 11        WHICH MONEYS IN THE FUND MAY BE UTILIZED AND TO DEFINE  THE  TERM  "PUBLIC
 12        SCHOOLS."
                                                                        
 13    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 14        SECTION  1.  That  Section  57-814, Idaho Code, be, and the same is hereby
 15    amended to read as follows:
                                                                        
 16        57-814.  BUDGET STABILIZATION FUND. (1) There is  hereby  created  in  the
 17    state  treasury  the budget stabilization fund for the purpose of meeting gen-
 18    eral fund revenue shortfalls and to meet expenses incurred as the result of  a
 19    major  disaster  declared  by  the  governor. All moneys in the budget reserve
 20    account at the date of approval of this act shall be transferred to the budget
 21    stabilization fund. Interest earnings from the investment of  moneys  in  this
 22    fund  by  the  state  treasurer  shall  be  credited to the permanent building
 23    account subject to the provisions of section 67-1210, Idaho Code.
 24        (2)  Subject to the requirements of section 63-3203, Idaho Code, the state
 25    controller shall annually transfer moneys from the general fund to the  budget
 26    stabilization  fund,  the Idaho millennium fund and the public school holdback
 27    protection fund subject to the following criteria:
 28        (a)  If the state controller certifies that the receipts  to  the  general
 29        fund  for  the  fiscal  year just ending have exceeded the receipts of the
 30        previous fiscal year by more than four percent (4%), then the  state  con-
 31        troller shall transfer all general fund collections in excess of said four
 32        percent  (4%) increase as follows: one-third (1/3) of such amount shall be
 33        transferred to the budget stabilization  fund,  one-third  (1/3)  of  such
 34        amount  shall  be transferred to the Idaho millennium fund created in sec-
 35        tion 67-1801, Idaho Code,  until  the  total  amount  transferred  to  the
 36        millennium  fund  pursuant to this subsection equals $49,325,545, and one-
 37        third (1/3) of such amount shall  be  transferred  to  the  public  school
 38        holdback  protection  fund  created in section 33-907, Idaho Code, up to a
 39        maximum of one two percent (12%) of the actual general fund collections of
 40        the fiscal year just ending. When the amount of money transferred  to  the
 41        Idaho  millennium  fund  created  in  section  67-1801, Idaho Code, equals
 42        $49,325,545, the excess provided above shall be  transferred  as  follows:
 43        one-third (1/3) of such amount shall be transferred to the budget stabili-
                                                                        
                                           2
                                                                        
  1        zation  fund  and  two-thirds (2/3) of such amount shall be transferred to
  2        the public school holdback protection fund.  The  state  controller  shall
  3        make  the  transfers in four (4) equal amounts during September, December,
  4        March and June of the next fiscal year.
  5        (b)  The amount of moneys in  the  budget  stabilization  fund  shall  not
  6        exceed five percent (5%) of the total general fund receipts for the fiscal
  7        year just ending.
  8        (c)  The  state  controller shall transfer moneys in the budget stabiliza-
  9        tion fund in excess of the limit imposed in subsection (2)(b) of this sec-
 10        tion to the general fund.
 11        (3)  If a majority of the membership of  each  house  of  the  legislature
 12    adopt a concurrent resolution  requesting the amount of the transfer specified
 13    in  subsection  (2)  of  this  section  be reduced, the state controller shall
 14    reduce the amount of the transfer.
 15        (4)  Appropriations of moneys from the budget stabilization  fund  in  any
 16    year  shall  be  limited  to  fifty  percent  (50%) after the fund balance has
 17    reached five percent (5%).
                                                                        
 18        SECTION 2.  That Section 67-1801, Idaho Code, be, and the same  is  hereby
 19    amended to read as follows:
                                                                        
 20        67-1801.  IDAHO  MILLENNIUM  FUND.  There  is  hereby created in the state
 21    treasury the "Idaho Millennium Fund." The fund shall  consist  of  all  moneys
 22    distributed  to  the state pursuant to the master settlement agreement entered
 23    into between tobacco  product  manufacturers  and  various  states,  including
 24    Idaho,  such moneys as may be provided in section 57-814, Idaho Code, and such
 25    moneys as may be provided by legislative appropriations. Money in the fund  is
 26    not  subject  to appropriation or distribution, except as provided in sections
 27    67-1802 and 67-1803, Idaho Code. Fund assets shall be invested  by  the  state
 28    treasurer  according  to  the  standards of the Idaho uniform prudent investor
 29    act, chapter 5, title 68, Idaho  Code,  and  the  state  treasurer  is  hereby
 30    granted the authority to invest the assets of the Idaho millennium fund in any
 31    investment  instruments  authorized by the standards of the Idaho uniform pru-
 32    dent investor act.
                                                                        
 33        SECTION 3.  That Chapter 9, Title 33, Idaho Code,  be,  and  the  same  is
 34    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 35    ignated as Section 33-907, Idaho Code, and to read as follows:
                                                                        
 36        33-907.  PUBLIC SCHOOL HOLDBACK PROTECTION FUND. (1) There is hereby  cre-
 37    ated  in the state treasury the public school holdback protection fund. Moneys
 38    in the fund shall consist of those moneys remitted pursuant to section 57-814,
 39    Idaho Code, appropriations, federal grants, donations, receipts  or  from  any
 40    source  whatsoever.  All  moneys earned from investment of idle funds shall be
 41    returned to the fund. The fund is created to protect school districts,  commu-
 42    nity  colleges,  and   colleges  and universities from general fund holdbacks.
 43    Moneys in the fund may be expended by the state board of examiners when a gen-
 44    eral fund holdback situation occurs affecting the general funds  appropriation
 45    for  state support of public schools. The state board of examiners shall order
 46    that a sufficient amount of money be diverted from  the  fund  to  the  public
 47    school income fund to cover the general fund holdback ordered by the governor.
 48    If  there are not sufficient moneys to cover the holdback, then that amount of
 49    the fund balance in the fund shall be transferred to the public school  income
 50    fund  or  the  respective community college, college or university as the case
 51    may be.
                                                                        
                                           3
                                                                        
  1        (2)  As used in this section, the term "public  schools"  shall  mean  all
  2    K-12  schools, community colleges, and colleges and universities receiving tax
  3    dollars from the state or from a political subdivision.

Statement of Purpose / Fiscal Impact


                     STATEMENT OF PURPOSE 
                           RS 12548C3

The purpose of this legislation is to provide that General Fund surpluses over a certain
amount be transferred to the Budget Stabilization Fund, The Idaho Millennium Fund, and
The Public School Protection Fund. Creates the Public School Protection Fund. Provides
for the orderly management of surplus revenues. Public schools are defined as school
districts, community colleges, and colleges and universities.






                                                        FISCAL IMPACT
                            
Provides that when the receipts to the general fund for the fiscal year just ending have
exceeded the receipts of the previous fiscal year by more than 4% that these surplus funds
shall be distributed as follows: 1/3 to the Budget Stabilization Fund, 1/3 to the
Millennium Fund until the corpus of the Millennium Fund is replenished, and 1/3 to the
Public School Protection Fund. When the corpus of the Millennium Fund is replenished,
then 1/3 shall be transferred to the Budget Stabilization fund and 2/3 to the Public School
Protection Fund. Maximum amount allocated cannot exceed 2% of the actual general
fund collections of the fiscal year just ending.


Contact:

Senator Gary J. Schroeder
Idaho Senate
332-1324




                                                                                                              S 1103