1     
JOINT RULES RESOLUTION - BUDGETING CHANGES TO

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STATE RETIREMENT CONTRIBUTIONS

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2023 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Lincoln Fillmore

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House Sponsor: Matthew H. Gwynn

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8     LONG TITLE
9     General Description:
10          This resolution modifies duties of the Executive Appropriations Committee related to
11     retirement contributions.
12     Highlighted Provisions:
13          This resolution:
14          ▸     directs the Executive Appropriations Committee to set aside any savings from each
15     reduction in the amortization rate and, when the total set aside money reaches a
16     specified threshold, include the amount in the base budget as an increase to
17     benefitted state employee salaries.
18     Special Clauses:
19          This resolution provides a special effective date.
20     Legislative Rules Affected:
21     AMENDS:
22          JR3-2-402
23     

24     Be it resolved by the Legislature of the state of Utah:
25          Section 1. JR3-2-402 is amended to read:
26          JR3-2-402. Executive appropriations -- Duties -- Base budgets.
27          (1) (a) The Executive Appropriations Committee shall meet no later than the third

28     Wednesday in December to:
29          (i) direct staff as to what revenue estimate to use in preparing budget
30     recommendations, to include a forecast for federal fund receipts;
31          (ii) consider treating above-trend revenue growth as one-time revenue for major tax
32     types and for federal funds;
33          (iii) hear a report on the historical, current, and anticipated status of the following:
34          (A) debt;
35          (B) long term liabilities;
36          (C) contingent liabilities;
37          (D) General Fund borrowing;
38          (E) reserves;
39          (F) fund balances;
40          (G) nonlapsing appropriation balances;
41          (H) cash funded infrastructure investment; and
42          (I) changes in federal funds paid to the state;
43          (iv) hear a report on:
44          (A) the next fiscal year base budget appropriation for Medicaid accountable care
45     organizations according to Section 26-18-405.5;
46          (B) an explanation of program funding needs;
47          (C) estimates of overall medical inflation in the state; and
48          (D) mandated program changes and their estimated cost impact on Medicaid
49     accountable care organizations;
50          (v) decide whether to set aside special allocations for the end of the session, including
51     allocations:
52          (A) to address any anticipated reduction in the amount of federal funds paid to the
53     state; and
54          (B) of one-time revenue to pay down debt and other liabilities;
55          (vi) decide whether to set aside special allocations for legislation that will reduce taxes,
56     including legislation that will reduce one or more tax rates;
57          (vii) subject to Subsection (1)(c), unless waived by majority vote, if the amortization
58     rate as defined in Utah Code Section 49-11-102 for the new fiscal year is less than the

59     amortization rate for the preceding fiscal year, set aside an amount equal to the value of the
60     reduction in the amortization rate;
61          [(vii)] (viii) approve the appropriate amount for each subcommittee to use in preparing
62     its budget;
63          [(viii)] (ix) set a budget figure; and
64          [(ix)] (x) adopt a base budget in accordance with Subsection (1)(b) and direct the
65     legislative fiscal analyst to prepare one or more appropriations acts appropriating one or more
66     base budgets for the next fiscal year.
67          (b) In a base budget adopted under Subsection (1)(a), the Executive Appropriations
68     Committee shall set appropriations from the General Fund, the Education Fund, and the
69     Uniform School Fund [shall be set] as follows:
70          (i) if the next fiscal year ongoing revenue estimates set under Subsection (1)(a)(i) are
71     equal to or greater than the current fiscal year ongoing appropriations, the new fiscal year base
72     budget is not changed;
73          (ii) if the next fiscal year ongoing revenue estimates set under Subsection (1)(a)(i) are
74     less than the current fiscal year ongoing appropriations, the new fiscal year base budget is
75     reduced by the same percentage that projected next fiscal year ongoing revenue estimates are
76     lower than the total of current fiscal year ongoing appropriations;
77          (iii) in making a reduction under Subsection (1)(b)(ii), appropriated debt service shall
78     not be reduced, and other ongoing appropriations shall be reduced, in an amount sufficient to
79     make the total ongoing appropriations, including the unadjusted debt service, equal to the
80     percentage calculated under Subsection (1)(b)(ii); and
81          (iv) the new fiscal year base budget shall include an appropriation to the Department of
82     Health for Medicaid accountable care organizations in the amount required by Section
83     26-18-405.5.
84          (c) (i) The Executive Appropriations Committee shall:
85          (A) comply with the set aside requirement described in Subsection (1)(a)(vii) using
86     money from the General Fund, Income Tax Fund, and Uniform School Fund;
87          (B) accumulate money set aside under Subsection (1)(a)(vii) across fiscal years; and
88          (C) when the total amount set aside under Subsection (1)(a)(vii), including any amount
89     to be set aside in the new fiscal year, equals or exceeds the cost of a 0.50% increase in

90     benefited state employee salaries for the new fiscal year, include in the base budget an increase
91     in benefited state employee salaries equal to the total set aside amount.
92          (ii) The Executive Appropriations Committee may waive or modify a requirement
93     described in Subsection (1)(c)(i) by majority vote.
94          [(c)] (d) The chairs of each joint appropriations subcommittee are invited to attend this
95     meeting.
96          (2) All proposed budget items shall be submitted to one of the subcommittees named in
97     JR3-2-302 for consideration and recommendation.
98          (3) (a) After receiving and reviewing subcommittee reports, the Executive
99     Appropriations Committee may refer the report back to a joint appropriations subcommittee
100     with any guidelines the Executive Appropriations Committee considers necessary to assist the
101     subcommittee in producing a balanced budget.
102          (b) The subcommittee shall meet to review the new guidelines and report the
103     adjustments to the chairs of the Executive Appropriations Committee as soon as possible.
104          (4) (a) After receiving the reports, the Executive Appropriations Committee chairs will
105     report them to the Executive Appropriations Committee.
106          (b) The Executive Appropriations Committee shall:
107          (i) make any further adjustments necessary to balance the budget; and
108          (ii) complete all decisions necessary to draft the final appropriations bills no later than
109     the last Friday before the 45th day of the annual general session.
110          Section 2. Effective date.
111          This resolution takes effect on May 3, 2023.