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PAG LIN 1 1 Section 1. PROPERTY TAX RELIEF FUND. There is 1 2 appropriated from the general fund of the state to the 1 3 property tax relief fund created in this Act for the fiscal 1 4 year beginning July 1, 1994, and ending June 30, 1995, the 1 5 following amount, or so much thereof as is necessary, to be 1 6 used for the purpose designated: 1 7 For deposit in the property tax relief fund: 1 8 .................................................. $ 40,000,000 1 9 Notwithstanding section 8.33, moneys appropriated in this 1 10 section which remain unexpended or unobligated at the close of 1 11 the fiscal year shall not revert to the general fund of the 1 12 state but shall remain available for expenditure in the 1 13 succeeding fiscal year as provided in this section. 1 14 Sec. 2. Section 8.57, subsection 1, paragraph a, Code 1 15 1995, is amended by striking the paragraph and inserting in 1 16 lieu thereof the following: 1 17 a. The cash reserve goal percentage for fiscal years 1 18 beginning on or after July 1, 1995, is five percent of the 1 19 adjusted revenue estimate. For each fiscal year beginning on 1 20 or after July 1, 1995, in which the appropriation of the 1 21 surplus existing in the general fund of the state at the 1 22 conclusion of the prior fiscal year pursuant to paragraph "b" 1 23 was not sufficient for the cash reserve fund to reach the cash 1 24 reserve goal percentage for the current fiscal year, there is 1 25 appropriated from the general fund of the state an amount to 1 26 be determined as follows: 1 27 (1) If the balance of the cash reserve fund in the current 1 28 fiscal year is not more than four percent of the adjusted 1 29 revenue estimate for the current fiscal year, the amount of 1 30 the appropriation under this lettered paragraph is one percent 1 31 of the adjusted revenue estimate for the current fiscal year. 1 32 (2) If the balance of the cash reserve fund in the current 1 33 fiscal year is more than four percent but less than five 1 34 percent of the adjusted revenue estimate for that fiscal year, 1 35 the amount of the appropriation under this lettered paragraph 2 1 is the amount necessary for the cash reserve fund to reach 2 2 five percent of the adjusted revenue estimate for the current 2 3 fiscal year. 2 4 (3) The moneys appropriated under this lettered paragraph 2 5 shall be credited in equal and proportionate amounts in each 2 6 quarter of the current fiscal year. 2 7 Sec. 3. Section 8.57, subsection 1, paragraph b, Code 2 8 1995, is amended to read as follows: 2 9 b.Commencing June 30, 1993, theThe surplus existing in 2 10 the general fund of the state at the conclusion of the fiscal 2 11 year is appropriated for distribution in the succeeding fiscal 2 12 year as provided inthis sectionsubsections 2 and 3. Moneys 2 13 credited to the cash reserve fund from the appropriation made 2 14 in this paragraph shall not exceed the amount necessary for 2 15 the cash reserve fund to reach the cash reserve goal 2 16 percentage for the succeeding fiscal year. As used in this 2 17 paragraph, "surplus" means the excess of revenues and other 2 18 financing sources over expenditures and other financing uses 2 19 for the general fund of the state in a fiscal year. 2 20 Sec. 4. Section 8.57, subsections 2 and 3, Code 1995, are 2 21 amended to read as follows: 2 22 2. Moneys appropriated under subsection 1 shall be first 2 23 credited to the cash reserve fund. To the extent that moneys 2 24 appropriated under subsection 1 would make the moneys in the 2 25 cash reserve fund exceed the cash reserve goal percentage of 2 26 the adjusted revenue estimate for the fiscal year, the moneys 2 27 are appropriated to the department of management to be spent 2 28 for the purpose of eliminating Iowa's GAAP deficit, including 2 29 the payment of items budgeted in a subsequent fiscal year 2 30 which under generally accepted accounting principles should be 2 31 budgeted in the current fiscal year. These moneys shall be 2 32 deposited into a GAAP deficit reduction account established 2 33 within the department of management. Unspent moneys in this 2 34 account shall be available for expenditure for subsequent 2 35 fiscal years. The department of management shall annually 3 1 file with both houses of the general assembly at the time of 3 2 the submission of the governor's budget, a schedule of the 3 3 items for which moneys appropriated under this subsection for 3 4 the purpose of eliminating Iowa's GAAP deficit, including the 3 5 payment of items budgeted in a subsequent fiscal year which 3 6 under generally accepted accounting principles should be 3 7 budgeted in the current fiscal year, shall be spent. The 3 8 schedule shall indicate the fiscal year in which the spending 3 9 for an item is to take place and shall incorporate the items 3 10 detailed in 1994 Iowa Acts, chapter 1181, section 17. The 3 11 schedule shall list each item of expenditure and the estimated 3 12 dollar amount of moneys to be spent on that item for the 3 13 fiscal year. The department of management may submit during a 3 14 regular legislative session an amended schedule for 3 15 legislative consideration. If moneys appropriated under this 3 16 subsection are not enough to pay for all listed expenditures, 3 17 the department of management shall distribute the payments 3 18 among the listed expenditure items. Moneys appropriated to 3 19 the department of management under this subsection shall not 3 20 be spent on items other than those included in the filed 3 21 schedule. After elimination of the GAAP deficit, including 3 22 elimination of the making of any appropriation in an incorrect 3 23 fiscal year, any moneys in the GAAP deficit reduction account 3 24 shall be appropriated in equal amounts to the Iowa economic 3 25 emergency fund and the property tax relief fund. 3 26 3. To the extent that moneys appropriated under subsection 3 27 1 exceed the amounts necessary for the cash reserve fund to 3 28 reach its maximum balance and the amounts necessary to 3 29 eliminate Iowa's GAAP deficit, including elimination of the 3 30 making of any appropriation in an incorrect fiscal year, the 3 31 moneys shall be appropriated in equal amounts to the Iowa 3 32 economic emergency fund and the property tax relief fund. 3 33 Sec. 5. NEW SECTION. 8.57A PROPERTY TAX RELIEF FUND. 3 34 1. The property tax relief fund is created in the state 3 35 treasury under the authority of the department of revenue and 4 1 finance. The fund shall be separate from the general fund of 4 2 the state and shall not be considered part of the general fund 4 3 of the state except in determining the cash position of the 4 4 state for payment of state obligations. The moneys in the 4 5 fund are not subject to the provisions of section 8.33 and 4 6 shall not be transferred, used, obligated, appropriated, or 4 7 otherwise encumbered except as provided in this section. 4 8 Moneys in the fund may be used for cash flow purposes, 4 9 provided that any moneys so allocated are returned to the fund 4 10 by the end of each fiscal year. However, the fund shall be 4 11 considered a special account for the purposes of section 8.53, 4 12 relating to elimination of any GAAP deficit. 4 13 2. Moneys in the fund shall be used for property tax 4 14 relief as provided by the general assembly. 4 15 Sec. 6. EFFECTIVE DATE. Sections 1 through 3 and 5 of 4 16 this Act, being deemed of immediate importance, take effect 4 17 upon enactment. 4 18 EXPLANATION 4 19 This bill relates to state financial provisions by making 4 20 an appropriation for the fiscal year beginning July 1, 1994, 4 21 to a property tax relief fund and providing for use of excess 4 22 revenues in future fiscal years, and providing an effective 4 23 date. 4 24 Section 8.57 currently provides for an annual increase in 4 25 the cash reserve goal percentage until a five percent maximum 4 26 amount of the adjusted revenue estimate is reached in fiscal 4 27 year 1997-1998. The bill accelerates the implementation of 4 28 the maximum amount to fiscal year 1995-1996. In addition, the 4 29 provisions are rewritten to specify the mechanism of the 4 30 appropriations. 4 31 New section 8.57A creates a new property tax relief fund. 4 32 Beginning with fiscal year 1995-1996, 50 percent of the moneys 4 33 remaining after the surplus in the state general fund ending 4 34 balance is used to fill the cash reserve and to maintain the 4 35 state's activities under generally accepted accounting 5 1 principles (GAAP) are to be deposited in the property tax 5 2 relief fund. The other 50 percent is to be deposited in the 5 3 Iowa economic emergency fund. 5 4 All provisions in the bill take effect upon enactment 5 5 except for section 4, providing for the deposits of moneys in 5 6 both the property tax relief fund and the Iowa economic 5 7 emergency fund, which takes effect in fiscal year 1995-1996. 5 8 LSB 1855SV 76 5 9 jp/cf/24
Text: SF00067 Text: SF00069 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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