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Second Substitute S.B. 154

Representative Glenn L. Way proposes the following substitute bill:




Sponsor: Parley G. Hellewell

             5      This act modifies the Budgetary Procedures Act by requiring that monies appropriated from
             6      the Budget Reserve Account be replaced from surpluses that occur in subsequent years and
             7      by authorizing the Division of Finance to hold back monies for debt service.
             8      This act affects sections of Utah Code Annotated 1953 as follows:
             9      AMENDS:
             10          63-38-2.5, as last amended by Chapter 6, Laws of Utah 1996, Second Special Session
             11      Be it enacted by the Legislature of the state of Utah:
             12          Section 1. Section 63-38-2.5 is amended to read:
             13           63-38-2.5. Establishing a Budget Reserve Account -- Providing for deposits and
             14      expenditures from the account.
             15          (1) There is created within the General Fund a restricted account to be known as the
             16      Budget Reserve Account, which is designated to receive the surplus revenue required by this
             17      section.
             18          (2) (a) (i) [Beginning June 30, 1993, at] At the end of any fiscal year in which the Division
             19      of Finance, in conjunction with the completion of the annual audit by the state auditor, determines
             20      that there is a General Fund surplus, 25% of the surplus shall be transferred to the Budget Reserve
             21      Account, except that the amount in the Budget Reserve Account may not exceed 8% of the General
             22      Fund appropriation amount for the fiscal year in which the surplus occurred.
             23          (ii) In addition to Subsection (2)(a)(i), if a surplus exists and if, within the last ten years,
             24      the Legislature has appropriated any money from the Budget Reserve Account that has not been
             25      replaced by appropriation or as provided in this Subsection (2)(a)(ii), the Division of Finance shall,

             26      before any contingent appropriations or other transfers required by law are made, transfer up to
             27      25% more of the surplus to the Budget Reserve Account to replace the amounts appropriated until
             28      transfers of the surplus under this Subsection (2)(a)(ii) have replaced the appropriations from the
             29      fund.
             30          (b) The amount to be transferred to the Budget Reserve Account shall be determined
             31      before any other contingency appropriation using surplus funds.
             32          (3) (a) If, at the close of any fiscal year, there appear to be insufficient monies to pay
             33      additional debt service for bonded debt authorized during the last annual general session and any
             34      special session, the Division of Finance may hold back monies from any General Fund surplus
             35      sufficient to pay the additional debt service requirements resulting from issuance of bonded debt
             36      that was authorized by the Legislature in the last annual general session and any special session.
             37          (b) The Division of Finance may not spend the hold back amount for debt service under
             38      Subsection (3)(a) unless and until it is appropriated by the Legislature.
             39          (c) If, after calculating the amount for transfers to the Budget Reserve Account, the
             40      remaining surplus is insufficient to cover the hold back for debt service required by Subsection
             41      (3)(a), the Division of Finance shall reduce the transfer to the Budget Reserve Account by the
             42      amount necessary to cover the debt service hold back.
             43          (d) Notwithstanding Subsection (2), the Division of Finance shall hold back the General
             44      Fund balance for debt service authorized by this Subsection (3) before making any transfers to the
             45      Budget Reserve Account or any other designation or allocation of surplus.
             46          [(3)] (4) (a) Any appropriation made by the Legislature from the Budget Reserve Account
             47      may only be used to cover operating deficits or retroactive tax refunds.
             48          (b) The Budgetary Reserve Account is available for appropriation to fund operating
             49      deficits in public education appropriations.
             50          [(4)] (5) All interest generated from investments of money in the Budget Reserve Account
             51      shall be deposited into the account.

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