The Governor would be allowed to request additional appropriations for emergencies provided the appropriations are approved by the General Assembly.

TAXPAYER PROTECTION STABILIZATION FUND - This amendment creates the "Taxpayer Protection Stabilization Fund". Money from the fund could be used to reduce state individual income tax rates or, if approved by the legislature, to pay for appropriations during years they exceed revenue collections. When general net revenue in a fiscal year exceeds more than 2.5 percent of the appropriations allowed for that year, the excess would be transferred to the stabilization fund. If the excess totaled 1.5 to 2.5 percent of the total appropriation allowed for that year, the excess will be used solely for capital improvements and repairs and maintenance.

CASH OPERATING RESERVE FUND - The current "Budget Reserve Fund" is replaced by the "Cash Operating Reserve Fund" and a new "Budget Reserve Fund" is created. Sixty-seven percent of the current budget reserve fund would be transferred to the cash operating reserve fund and any remaining money would be transferred to the new budget reserve fund.

At the close of any fiscal year, if the balance in the cash operating reserve fund exceeds five percent of the net general revenue collections for the previous year, the excess will be transferred to the taxpayer protection stabilization fund. If the ending balance of the cash operating reserve fund is less than five percent of net general revenue collections for the same year, the difference would be transferred to the budget reserve fund.

BUDGET RESERVE FUND - Under current law, the proceeds in the budget reserve fund can be used upon approval by two-thirds of the legislature when a disaster creates a budgetary need or when the Governor proclaims that his reductions to state expenditures appropriated by the legislature must be restored. This amendment would only require approval for such appropriations by a simple majority of the legislature and current limits on how much may be appropriated from the fund are removed.

When the legislature appropriates money from the budget reserve fund, a standing appropriation currently directs general revenue to the budget reserve fund equal to one-third of the amount expended from the fund, plus interest, for three years following the expenditure. This amendment eliminates the standing appropriation and requires the legislature to repay the full amount expended within five years. Current limits on how much money may be appropriated from the budget reserve fund are also removed.

Current law requires a transfer of money from the budget reserve fund to general revenue when the fund's balance exceeds 7.5 percent of revenue collections. That percentage is increased to 10 percent of collections if the legislature has paid into the balance.

Under this amendment, when the balance in the budget reserve fund exceeds 7 percent of collections, regardless of whether the legislature has paid into the fund, the excess is transferred into the taxpayer protection stabilization fund. If the balance in the budget reserve fund is less than 7 percent of collections, general revenue is transferred to the budget reserve fund to make up the difference.

The treasurer would be required to invest any balance in the budget reserve fund.

SUNSET PROVISION - The provisions of this amendment automatically expire five years after their effective date unless the General Assembly reauthorizes them. If reauthorized, the provisions sunset after ten years. The sections would not terminate until September 1 of the year following the sunset.

This amendment is similar to SJR 35 (2010); SJR 13 (2009) and SJR 50 (2008).

JASON ZAMKUS