S.B. 154 Enrolled

DEBT SERVICE AND RAINY DAY FUND AMENDMENTS
2002 GENERAL SESSION
STATE OF UTAH
Sponsor: Parley G. Hellewell
This act modifies the Budgetary Procedures Act by requiring that monies appropriated from
the Budget Reserve Account be replaced from surpluses that occur in subsequent years and
by authorizing the Division of Finance to hold back monies for debt service.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
63-38-2.5, as last amended by Chapter 6, Laws of Utah 1996, Second Special Session
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 63-38-2.5 is amended to read:
63-38-2.5. Establishing a Budget Reserve Account -- Providing for deposits and
expenditures from the account.
(1) There is created within the General Fund a restricted account to be known as the
Budget Reserve Account, which is designated to receive the surplus revenue required by this
section.
(2) (a) (i) [Beginning June 30, 1993, at] At the end of any fiscal year in which the Division
of Finance, in conjunction with the completion of the annual audit by the state auditor, determines
that there is a General Fund surplus, 25% of the surplus shall be transferred to the Budget Reserve
Account, except that the amount in the Budget Reserve Account may not exceed 8% of the General
Fund appropriation amount for the fiscal year in which the surplus occurred.
(ii) In addition to Subsection (2)(a)(i), if a surplus exists and if, within the last ten years,
the Legislature has appropriated any money from the Budget Reserve Account that has not been
replaced by appropriation or as provided in this Subsection (2)(a)(ii), the Division of Finance shall,
before any contingent appropriations or other transfers required by law are made, transfer up to
25% more of the surplus to the Budget Reserve Account to replace the amounts appropriated until
transfers of the surplus under this Subsection (2)(a)(ii) have replaced the appropriations from the
fund.

(b) The amount to be transferred to the Budget Reserve Account shall be determined before
any other contingency appropriation using surplus funds.
(3) (a) If, at the close of any fiscal year, there appear to be insufficient monies to pay
additional debt service for bonded debt authorized during the last annual general session and any
special session, the Division of Finance may hold back monies from any General Fund surplus
sufficient to pay the additional debt service requirements resulting from issuance of bonded debt that
was authorized by the Legislature in the last annual general session and any special session.
(b) The Division of Finance may not spend the hold back amount for debt service under
Subsection (3)(a) unless and until it is appropriated by the Legislature.
(c) If, after calculating the amount for transfers to the Budget Reserve Account, the
remaining surplus is insufficient to cover the hold back for debt service required by Subsection
(3)(a), the Division of Finance shall reduce the transfer to the Budget Reserve Account by the
amount necessary to cover the debt service hold back.
(d) Notwithstanding Subsection (2), the Division of Finance shall hold back the General
Fund balance for debt service authorized by this Subsection (3) before making any transfers to the
Budget Reserve Account or any other designation or allocation of surplus.
[(3)] (4) (a) Any appropriation made by the Legislature from the Budget Reserve Account
may only be used to cover operating deficits or retroactive tax refunds.
(b) The Budgetary Reserve Account is available for appropriation to fund operating deficits
in public education appropriations.
[(4)] (5) All interest generated from investments of money in the Budget Reserve Account
shall be deposited into the account.

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