An Act to create the local assistance fund and to provide for the transfer of certain unobligated cash balances.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That 4-7-31 be AMENDED:
4-7-31. There is hereby established within the state treasury the budget reserve fund. The fund consists of money deposited in accordance with 4-7-32(1) and other money designated for deposit into the fund. Expenditures from the budget reserve fund may occur only by special appropriation of the Legislature and only to redress unforeseen expenditure obligations or unforeseen revenue shortfalls, as may constitute an emergency pursuant to S.D. Const., Art. III, 1.
Section 2. That 4-7-32 be AMENDED:
4-7-32.
On July first of
each fiscal year or at such time
that
as the prior
fiscal year general fund
ending
unobligated cash balance is determined, the commissioner of the
Bureau of Finance and Management
shall
must transfer
all prior year unobligated cash
up to an amount equal to ten percent of the general fund
appropriations from the general appropriation act for the prior
fiscal year into the budget reserve fund. In no event shall the cash
balance in the budget reserve fund be greater than ten percent of the
general fund appropriations from the general appropriation act for
the prior fiscal year.
Expenditures
out of the budget reserve fund shall only be by special appropriation
of the Legislature and shall only redress such unforeseen expenditure
obligations or such unforeseen revenue shortfalls as may constitute
an emergency pursuant to S.D. Const., Art. III, 1.
as follows:
(1) If the cash balance of the budget reserve fund is less than ten percent of the General Appropriations Act for the prior fiscal year, an amount of unobligated cash must be deposited into the budget reserve fund, created in 4-7-31, so that the cash balance equals ten percent of the General Appropriations Act for the prior fiscal year;
(2) If any unobligated cash balance remains after the requirements of subdivision (1) are met, the commissioner of the Bureau of Finance and Management must deposit fifty percent of any unobligated cash remaining into the local assistance fund created by section 3 of this Act; and
(3) After the requirements of subdivision (2) are met, the commissioner of the Bureau of Finance and Management must deposit any unobligated cash remaining into the general revenue replacement fund, created in 4-7-45.
Section 3. That chapter 4-7 be amended with a NEW SECTION:
There is hereby established within the state treasury the local assistance fund. The state treasurer must maintain and administer the fund. Interest on moneys credited to the fund must remain in the fund. Moneys in the fund are continuously appropriated for the funding of municipalities, counties, and school districts.
Upon the deposit of moneys in accordance with subdivision (2) of section 2 of this Act, the state treasurer must distribute moneys in the fund as follows:
(1) Twenty-five percent for distribution to school districts. The distribution to each school district must be the school district's percent of fall enrollment multiplied by the amount for distribution;
(2) Fifty percent for distribution to counties. The distribution to each county must be the county's percent of the South Dakota population based on the most recent U.S. Census estimate multiplied by the amount for distribution; and
(3) Twenty-five percent for distribution to municipalities. The distribution to each municipality must be the municipality's percent of the South Dakota population based on the most recent U.S. Census estimate multiplied by the amount for distribution.
Section 4. That 4-7-39 be REPEALED:
The commissioner of the
Bureau of Finance and Management shall transfer any unobligated cash
remaining after the transfer into the budget reserve fund as required
by 4-7-32
into the general revenue replacement fund if the amount in the
general revenue replacement fund does not exceed fifteen percent of
the general fund appropriations in the General Appropriations Act for
the previous fiscal year.