View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
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
|||| 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
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