H0409.....................................................by APPROPRIATIONS APPROPRIATIONS - Stating legislative findings; and providing for the transfer of an additional $70,000,000 to the Budget Stabilization Fund. 01/19 House intro - 1st rdg - to printing 01/20 Rpt prt - to 2nd rdg 01/23 2nd rdg - to 3rd rdg 01/24 3rd rdg - PASSED - 68-1-1 AYES -- Anderson, Andrus, Barrett, Bastian, Bayer, Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Mitchell(Chavez), Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker NAYS -- Schaefer Absent and excused -- Barraclough Floor Sponsor - Bell Title apvd - to Senate 01/25 Senate intro - 1st rdg - to Fin 01/26 Rpt out - rec d/p - to 2nd rdg 01/27 2nd rdg - to 3rd rdg 01/30 3rd rdg - PASSED - 33-1-1 AYES -- Andreason, Broadsword, Bunderson, Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams NAYS -- Burkett Absent and excused -- Brandt Floor Sponsor - Cameron Title apvd - to House 01/30 To enrol 01/31 Rpt enrol - Sp signed 02/01 Pres signed - To Governor 02/07 Governor signed Session Law Chapter 4 Effective: 02/07/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 409 BY APPROPRIATIONS COMMITTEE 1 AN ACT 2 STATING FINDINGS OF THE LEGISLATURE; TRANSFERRING MONEYS TO THE BUDGET STABI- 3 LIZATION FUND; AND DECLARING AN EMERGENCY. 4 Be It Enacted by the Legislature of the State of Idaho: 5 SECTION 1. It is the finding of the Legislature that, given the improved 6 economic conditions that have produced state revenues in excess of projec- 7 tions, it is in the best interest of the citizens of the state of Idaho to 8 follow a sound budget policy which includes maximizing the state's cash 9 reserves when those economic opportunities materialize. The appropriation con- 10 tained in this act will bring the state's Budget Stabilization Fund to the 11 full five percent cap allowed by law, an historical high for this fund, which 12 is designed to protect state programs as well as the taxpayers of Idaho during 13 economic downturns. 14 SECTION 2. In addition to the normal transfers made by the State Control- 15 ler pursuant to Section 57-814, Idaho Code, the State Controller shall immedi- 16 ately transfer the sum of $70,000,000 from the General Fund to the Budget Sta- 17 bilization Fund. 18 SECTION 3. An emergency existing therefor, which emergency is hereby 19 declared to exist, this act shall be in full force and effect on and after its 20 passage and approval.
|Statement of Purpose|
This bill immediately transfers $70,000,000 from the current General Fund cash balance into the Budget Stabilization Fund. With this transfer, the Budget Stabilization Fund will reach $108.6 million, the 5% cap provided for in statute, which has never been accomplished since the inception of this fund. The Budget Stabilization Fund is an important safety net to protect state programs and Idaho taxpayers when there is an economic downturn.
The current balance in the Budget Stabilization Fund ($27.3 million) combined with the regular March and June quarterly transfers ($11.3 million combined), would have resulted in a FY 2006 balance in the fund of about $38.6 million. This additional transfer of $70 million will bring the total balance for FY 2006 to $108.6 million, which is the estimated 5% cap allowed by statute. The added benefit of making this transfer immediately is that the interest earned on the Budget Stabilization Fund is earmarked for the Permanent Building Fund, which has more demands on it currently than can possibly be covered. At the current interest rate of 4.16%, this will add about $1.2 million in PBF monies in FY 2006 and close to $3.0 million in added PBF monies in FY 2007.
Contact: Jeff Youtz 334-4743
Legislative Services Office, Budget & Policy Analysis
|Statement of Purpose/Fiscal Note||Bill No. H409|