SB1532

THE CONTEXT: The Budget Stabilization Fund (Fund) consists of monies transferred from the state General Fund (GF) according to statute. The annual budget recommendations from the Governor and the Joint Legislative Budget Committee must include estimates of required appropriations or transfers.

WHAT THE BILL DID: The final vetoed version would requires, as session law, any unrestricted federal monies received by the state beginning July 1, 2023 through June 30, 2024 to be deposited in the GF; a) Stipulates that these monies must be used to pay essential government services; and b) Contains a retroactivity clause of July 1,, stipulates, as session law, that the Legislature is not required to appropriate monies to or transfer monies from the Fund through FY, and states, as session law, that for FY 2024 the Fund is not limited to 10 percent of the GF revenue for the fiscal year; a) Prohibits the State Treasurer from transferring any surplus monies from the Fund to the GF.

WHY IT MATTERED: The practical reason for this bill was to make the state tax, regulatory, or economic rule for state budget implementation more predictable. It would requires, as session law, any unrestricted federal monies received by the state beginning July 1, 2023 through June 30, 2024 to be deposited in the GF. a) Stipulates that these monies must be used to pay essential government services; and b) Contains a retroactivity clause of July 1,, and would also stipulates, as session law, that the Legislature is not required to appropriate monies to or transfer monies from the Fund through FY, rather than leave the current rule unchanged.