LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 20 SLS 201ES 18
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 11, 2020 6:19 PM Author: WHITE, B
Dept./Agy.: Treasury
Subject: Transfer Surplus To Budget Stabilization Fund Analyst: Greg Albrecht
FUNDS/FUNDING EG SEE FISC NOTE SD RV See Note Page 1 of 1
Provides for the creation, transfer, dedication, deposit, and use of certain funds in the state treasury. (gov sig)
Creates a new special fund in the treasury, the Fiscal Year 2019 Surplus Fund. Directs the treasurer to transfer
$116,987,844 of nonrecurring general fund revenue recognized as Fiscal Year 2018-2019 surplus by the Revenue Estimating
Conference. Earnings and unemcumbered balances are retained by the Fund.
Monies in the Fund shall be appropriated and used solely as provided for the Budget Stabilization Fund {Art VII, §10.3 of the
State Constitution}.
Effective upon governor's signature.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other SEE BELOW $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other SEE BELOW $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
The bill moves FY19 surplus funds between dedications, in this case enhancing the resources available to the Budget
Stabilization Fund at the expense of the other dedicated uses for which the funds could be utilized.
The Budget Stabilization Fund can be utilized to support general appropriations if the official revenue forecast for the current
fiscal year is reduced, or if the official forecast for the ensuing fiscal year is reduced below the forecast for the current fiscal
year. Utilization of BSF resources across the current year and the ensuing year is limited to 1/3 of the fund balance at the
start of the current fiscal year.
REVENUE EXPLANATION
On January 31, 2020, the Revenue Estimating Conference recognized $534,509,518 of surplus from FY19, and designated
these funds as nonrecurring.
At least twenty-five percent of this total ($133,627,380 million) is constitutionally allocated to the Budget Stabilization Fund.
At least ten percent ($53,450,952) is constitutionally allocated to the unfunded accrued liabilities of the state employees’
and teachers’ retirement systems.
The balance ($347,431,186) is available for other constitutionally enumerated debt payoff and capital outlay uses, or for
additional allocations to the Budget Stabilization Fund or the unfunded accrued retirement liabilities.
This bill directs the transfer of $116,987,844 to the new special fund created in this bill (Fiscal Year 2019 Surplus Fund) to
be used solely as provided by the constitutional provisions for the Budget Stabilization Fund.
The bill moves FY19 surplus funds between dedications, in this case enhancing the resources available to the Budget
Stabilization Fund at the expense of the other dedicated uses for which the funds could be utilized.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
John D. Carpenter
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer