S0545.01I

SJR 4 - This joint resolution, upon voter approval, would create a Budget Stabilization Fund within the State Treasury for use in meeting program funding requirements of the State. The General Assembly may appropriate moneys to the fund until the fund balance equals 2.5% of net general revenue collections for the preceding fiscal year. "Net general revenue collections" is defined as all revenue deposited into the General Revenue Fund less refunds and revenue designated for specific distribution or transfer to other state funds.

Whenever an amount is transferred or expended from the Budget Stabilization Fund in any fiscal year, such amount together with any interest which would have been earned on such amount shall stand appropriated back into the fund for the next three fiscal years or until the full amount, plus interest, has been returned to the fund.

If the balance in the fund at the end of any fiscal year together with any amounts owed to the fund is less than 2.5% of the net general revenue collections for that year, the difference is to stand appropriated and be transferred from the General Revenue fund.

If the balance in the fund at the end of any fiscal year exceeds 2.5% of the net general revenue collections for that year, the excess shall be transferred to the General Revenue Fund.

In any fiscal year in which the Governor reduces the expenditures of the state or any of its agencies below their appropriations due to revenues not meeting projections for that fiscal year or in which there is a budget need due to a disaster, the General Assembly, upon request by the Governor for an emergency appropriation, may appropriate funds from the Budget Stabilization Fund to fulfill expenditures authorized by appropriations which were affected by the Governor's decision.

This joint resolution would also authorize the General Assembly to appropriate moneys to the Cash Operating Reserve Fund. The Commissioner of Administration would have the authority to transfer amounts from the fund to the General Revenue Fund or other recipient fund. Currently, transfers may only be made between the Cash Operating Reserve and General Revenue Funds.

This joint resolution is identical to TAT HJR 58 from 1996.

TOM CRAWFORD