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STATEMENT OF PURPOSE
RS26881
This legislation creates a source of transportation funding for State and local roads while saving additional
moneys for times of State revenue shortfalls or major disasters. Section 1, in part, creates an economic
reserve and investment fund ("ERIF") for the purpose of providing moneys for: 1) the strategic initiatives
program; 2) meeting general fund revenue shortfalls or 3) meeting expenses incurred as the result of a
major disaster declared by the governor. As background, both the economic recovery and reserve fund
and the budget stabilization fund were for meeting general revenue shortfalls, and expenses as a result
of major disasters. The ERIF, which replaces the economic recovery and reserve fund, still has those
purposes with the addition of funding the strategic initiatives program. The strategic initiatives program is
a competitive transportation project grant program. The grant is administered by the Idaho transportation
department ("ITD") and local highway technical assistance council ("LHTAC"). The award is based on
criteria including, but not limited to, projects enhancing safety, traffic mobility, repair and maintenance of
bridges and purchase of right of ways. The ERIF will received funds from the remaining moneys in the
economic recovery and reserve fund. On or about July 1, 2019, the state controller is directed to transfer
$272,000,000 from the budget stabilization fund to the ERIF. After the close of the fiscal year, on or about
July 1, the State Controller shall transfer any general fund excess to the ERIF. The general fund excess shall
be calculated by first providing for the carry forward ending balance or $60,000,000 – whichever is greater
– plus an amount sufficient to cover encumbrances and reappropriation as authorized by the Legislature. On
or about July 15, 2019, the State Controller shall transfer $38,200,000 to the strategic initiatives program.
On or about July 15, 2020, the State Controller shall transfer $1 dollar to the strategic initiatives program.
On or about July 1, 2021, the State Controller shall transfer and amount not exceeding 5% of the average
month fair market value of the economic reserve fund to the strategic initiatives program. Such transfer
shall not occur if: the budget stabilization fund is less than a certain percentage of general fund revenue,
the legislature refuses to consent to a transfer or in the event of a major disaster declared by the Governor.
Section 2 repeals the old economic recovery and reserve fund, which is being replaced by the ERIF.
Section 3 pertains to the budget stabilization fund. The budget stabilization fund will receive funds from
interest generated from investment of fund moneys. Additionally, if receipts to the general fund exceed
receipts of the previous year by more than 4%, then an amount up to 1% shall be transferred into the budget
stabilization fund. Section 4 pertains to the strategic initiatives transportation program. It amends the
program to allocate $2,000,000 or 4.5% of the apportioned funds, whichever is less, to be used for funding
children pedestrian safety projects on state and local roads. Following the allocation, 60% of the funds
goes to ITD for state projects and 40% of the funds goes to the local highway technical assistance council
for local projects. Single countywide highway districts may opt out of the grant program and receive an
amount that is the same portion as it would have received under Idaho Code Section 40-709. Section 5
provides for an additional $5,000,000 to the permanent building fund. Approximately $5,000,000 was the
amount that the permanent building fund was receiving from the interest on the budget stabilization fund
that is now going back to the budget stabilization fund. Sections 6 through 8 cleans up prior language to
make the strategic initiatives program consistent with this legislation and adds an emergency clause.
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note S1126
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FISCAL NOTE
S1126 aaH impacts both the General Fund and Dedicated Funds in FY 2020 and FY 2021. For the General
Fund impact, the additional $5 million transfer from sales tax to the permanent building fund will reduce FY
2020 and FY 2021 General Fund revenues by $5,000,000. Additionally, the statutory transfer to the Budget
Stabilization Fund will require JFAC to account for a FY 2020 transfer of approximately $37.5 million and
a FY 2021 transfer to Budget stabilization of $40.5 million. The total impact to the General Fund in FY
2020 is $42.5 million and the total impact in FY 2021 is $45.5 million. For dedicated funds, there is an FY
2020 impact of $38.2 million transferred from the Economic Reserve and Investment Fund to the Strategic
Initiatives Program Fund. The FY 2021 impact is yet to be determined. There are two FY 2019 transfers
of cash that are also impacted by this bill. First, $272 million from the Budget Stabilization Fund to the
Economic Reserve and Investment Fund. Second a cash transfer from the Economic Recovery Reserve
Fund to the Economic Reserve and Investment Fund. This transfer will zero out the Economic Recovery
Reserve Fund. There is currently about $365,500 in the Economic Recovery Reserve Fund.
Contact:
Representative Joe Palmer
Representative Scott Bedke
Representative Mat Erpelding
Representative Jason A. Monks
Representative Mike Moyle
Senator Bert Brackett
(208) 332-1000
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note S1126


Statutes affected:
Bill Text: 40-719, 57-814
Engrossment 1: 67-3520, 40-719, 63-3638