Proposed Bill No. 5187 seeks to amend current statutes regarding the fiscal management of the state by adjusting the methodology for calculating the annual threshold amount for revenue transfers under section 4-30a. The bill proposes to implement an inflation-adjusted five-year moving average of the revenue being transferred, which aims to provide a more accurate reflection of revenue trends over time. Additionally, the bill seeks to increase the maximum capacity of the Budget Reserve Fund from its current limit to twenty percent of net General Fund appropriations, thereby enhancing the state's financial stability and preparedness for economic fluctuations.

The adjustments made by this bill are intended to improve the state's fiscal guardrails, ensuring that revenue transfers are more aligned with actual economic conditions and that the Budget Reserve Fund is adequately funded to support the state's financial needs during periods of volatility. By implementing these changes, the bill aims to promote better fiscal management and sustainability for the state’s budgetary processes.