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UTAH STATE SENATE

UTAH STATE CAPITOL COMPLEX * 320 STATE CAPITOL

P.O. BOX 145115 * SALT LAKE CITY, UTAH 84114-5115 * (801) 538-1035

        February 27, 2012
Mr. President:

    The Government Operations and Political Subdivisions Committee reports a favorable recommendation on S.B. 280, BUDGET RESERVE ACCOUNT AMENDMENTS, by Senator L. Hillyard, with the following amendments:

1.    Page 1, Lines 14 through 15 :    

             14          .    modifies the limits on the Education Budget Reserve Account;

{   and   }

  . corrects references to the Medicaid Growth Reduction and Budget Stabilization Account; and      

             15          .    makes technical changes.

2.    Page 1, Lines 22 through 23 :    

             22          63J-1-312, as last amended by Laws of Utah 2011, Chapters 211, 303, and 342
             23          63J-1-313, as last amended by Laws of Utah 2011, Chapter 303
      63J-1-314, as last amended by Laws of Utah 2011, Chapters 211 and 303      


3.    Page 6, Lines 178 through 179 :    

             178          (6) Interest generated from investments of money in the Education Fund Budget
             179      Reserve Account shall be deposited into the Education Fund.
    
  Section 3. Section 63J-1-314 is amended to read:      

     63J-1-314 .   Deposits related to the Disaster Recovery Funding Act.
     (1) As used in this section, "operating deficit" means that, at the end of the fiscal year, the unassigned fund balance in the General Fund is less than zero.
     (2) Except as provided under Subsection (3), at the end of each fiscal year, the

Division of Finance shall, after the transfer of General Fund revenue surplus has been made to the Medicaid Budget

  Growth Reduction and       Stabilization      {   Restricted   } Account, as provided in Section 63J-1-315 , and the General Fund Budget Reserve Account, as provided in Section 63J-1-312 , transfer an amount into the State Disaster Recovery Restricted Account, created in Section 53-2-403 , from the General Fund revenue surplus as defined in Section 63J-1-312 , calculated by:

     (a) determining the amount of General Fund revenue surplus after the transfer to the Medicaid
  Growth Reduction and       Budget Stabilization      {   Restricted   } Account under Section 63J-1-315 and the General Fund Budget Reserve Account under Section 63J-1-312 ;

     (b) calculating an amount equal to the lesser of:
     (i) 25% of the amount determined under Subsection (2)(a); or
     (ii) 6% of the total of the General Fund appropriation amount for the fiscal year in which the surplus occurs; and
     (c) adding to the amount calculated under Subsection (2)(b) an amount equal to the lesser of:
     (i) 25% more of the amount described in Subsection (2)(a); or
     (ii) the amount necessary to replace, in accordance with this Subsection (2)(c), any amount appropriated from the State Disaster Recovery Restricted Account within 10 fiscal years before the fiscal year in which the surplus occurs if:
     (A) a surplus exists; and
     (B) the Legislature appropriates money from the State Disaster Recovery Restricted Account that is not replaced by appropriation or as provided in this Subsection (2)(c).
     (3) Notwithstanding Subsection (2), if, at the end of a fiscal year, the Division of Finance determines that an operating deficit exists, the division shall reduce the transfer to the State Disaster Recovery Restricted Account by the amount necessary to eliminate the operating deficit.

        Respectfully,

        Peter C. Knudson
        Committee Chair

Voting: 5-0-1
3 SB0280.SC1.wpd rnorth/RCN PO/BRH 2/27/12 10:20 am


Bill Number
Action Class
Action Code

*SB0280*
*S*
*SCRAMD*

SB0280
S
SCRAMD