SJR 26 - Current constitutional provisions provide for a Budget Reserve Fund to assist with short-term cash requirements of the state and for potential budget stabilization needs. This constitutional amendment, if approved by the voters, renames the Budget Reserve Fund as the Cash Balance Fund, and restricts its use to short-term cash operating transfers. This amendment creates the State Disaster and Emergency Fund, which may be used if the Governor reduces the expenditures of the state or any of its agencies below their appropriations, or when there is a budget need due to a disaster. A disaster may only be declared by the Governor or by a two-thirds majority vote by each house of the General Assembly.
This amendment also creates the Local Disaster and Emergency Fund. Upon a declaration of a disaster, counties, cities, and other municipalities may apply to the Department of Public Safety to receive grants from the Local Disaster and Emergency Fund. The Department may issue such a grant with the approval of the Governor if the grant request does not exceed the lesser of $10M or 5% of the fund balance. If the grant request exceeds such amount, the Department may only issue such grant with an appropriation from the State Disaster and Emergency Fund with the approval of a majority vote by each house of the General Assembly.
This amendment imposes a 0.1% statewide sales and use tax for the purpose of providing funds for disasters and emergencies in this state. Twenty percent of the tax imposed under this amendment shall be deposited in the Local Disaster and Emergency Fund and shall stand appropriated without further legislative action to the Department of Public Safety for the purpose of providing grants to municipalities. Eighty percent of the tax imposed under this amendment shall be deposited in the State Disaster and Emergency Fund.
If the balance in the Local Disaster and Emergency Fund at the end of a fiscal year exceeds $100 million, the excess amount shall be transferred to the State Disaster and Emergency Fund. If the balance in the State Disaster and Emergency Fund at the end of a fiscal year exceeds $400 million, the excess amount shall be transferred to the General Revenue Fund.
JOSHUA NORBERG