The bill HB2610 proposes to amend Arizona Revised Statutes section 35-144, specifically regarding the Budget Stabilization Fund (BSF), commonly known as the "Rainy Day Fund." The key change is the repeal of the existing cap that limits the BSF balance to no more than 10% of the state general fund revenue at the end of a fiscal year. Additionally, the bill removes the requirement for any surplus funds above this 10% threshold to be automatically transferred to the state general fund.

In summary, the new legislation eliminates the fiscal cap on the BSF and the automatic transfer of excess funds, allowing for potentially larger reserves in the BSF without mandatory redistribution to the general fund. This change aims to provide greater flexibility in managing state finances, particularly during economic downturns.

Statutes affected:
Introduced Version: 35-144