Download this document in MS Word format
BILL AS INTRODUCED 2007-2008

AutoFill Template

H.658

Introduced by   Representative Brennan of Colchester

Referred to Committee on

Date:

Subject:  Appropriations; general fund; waterfall  

Statement of purpose:  This bill would provide that any general fund balance at the end of each fiscal year shall be transferred to the transportation fund and not be otherwise appropriated in the form of a designated general fund balance (waterfall) or contingent appropriation.

AN ACT RELATING TO TRANSFER OF GENERAL FUND BALANCE TO THE TRANSPORTATION FUND

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  32 V.S.A. § 308 is amended to read:

§ 308.  GENERAL FUND BUDGET STABILIZATION RESERVE;

            CREATION AND PURPOSE

(a)  It is the purpose of this section to reduce the effects of annual variations in state revenues upon the general fund budget of the state by reserving certain surpluses in general fund revenues that may accrue for the purpose of offsetting deficits or reducing general fund bonds.

(b)  There is hereby created a general fund budget stabilization reserve determined on a budgetary basis and administered by the commissioner of finance and management.  Any budgetary basis undesignated general fund surplus occurring at the close of a fiscal year shall be reserved within the general fund budget stabilization reserve, provided that the balance reserved shall not exceed five percent of the appropriations from the general fund for the prior fiscal year, and any additional amounts as may be authorized by the general assembly.  Any undesignated general fund surplus remaining after the general fund budget stabilization reserve has been brought to the maximum authorized level shall remain in the general fund. When the general assembly next meets, it may specifically appropriate the use of the undesignated general fund surplus for the reduction of general fund bonds authorized but yet to be issued by the treasurer, a reduction of revenues or for other needs as the general assembly may determine be deposited in the transportation fund established by section 11 of Title 19, and not be further appropriated as a designated general fund balance or contingent appropriation.

(c)  In any fiscal year if the general fund is found to have an undesignated fund deficit, the general fund budget stabilization reserve shall be used by the commissioner of finance and management to the extent necessary to offset the undesignated fund deficit as determined by Generally Accepted Accounting Principles.

(d)  Determination of the amount of the undesignated general fund surplus or fund deficit in any fiscal year for the purposes of this section shall be made by the commissioner of finance and management.  Adjustments shall be made to the amounts authorized in subsections (b) and (c) of this section upon receipt of the final audited annual report of the commissioner of finance and management.

Sec. 2.  32 V.S.A. § 308c is amended to read:

§ 308c.  GENERAL FUND AND TRANSPORTATION FUND SURPLUS

              RESERVES

(a)  There is hereby created within the general fund a general fund surplus reserve. After satisfying the requirements of section 308 of this title, and after other reserve requirements have been met, any remaining unreserved and undesignated end of fiscal year general fund surplus shall be reserved in the general fund surplus reserve. Monies from this reserve shall be available for appropriation by the general assembly.

(b)  There is hereby created within the transportation fund a transportation fund surplus reserve.  After satisfying the requirements of section 308a of this title, and after other reserve requirements have been met, any remaining unreserved and undesignated end of fiscal year transportation fund surplus shall be reserved in the transportation fund surplus reserve.  Monies from this reserve shall be available for appropriation by the general assembly for transportation purposes.

(c) The general fund surplus reserve created in subsection (a) of this section shall supersede and replace the general fund surplus reserve established in Sec. 277(5) of No. 147 of the Acts of the 1997 Adj. Sess. (1998), as amended by Sec. 88 of No. 1 of the Acts of 1999.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us