Text: HF02239                           Text: HF02241
Text: HF02200 - HF02299                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index



House File 2240

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 8.21, unnumbered paragraph 2, Code
  1  2 Supplement 2001, is amended to read as follows:
  1  3    If the governor is required to use a lesser amount in the
  1  4 budget process because of a later meeting of the state revenue
  1  5 estimating conference under section 8.22A, subsection 3
  1  6 issuance of a revised state general fund expenditure
  1  7 limitation under section 8.54, subsection 4, the governor
  1  8 shall transmit recommendations for a budget in conformance
  1  9 with that requirement within fourteen days of the later
  1 10 meeting of the state revenue estimating conference the date
  1 11 the revision was issued.
  1 12    Sec. 2.  Section 8.22A, subsection 4, Code Supplement 2001,
  1 13 is amended by striking the subsection.
  1 14    Sec. 3.  Section 8.22A, subsection 5, Code Supplement 2001,
  1 15 is amended by adding the following new paragraphs:
  1 16    NEW PARAGRAPH.  e.  The amount of tax refunds payable from
  1 17 revenues.
  1 18    NEW PARAGRAPH.  f.  The amount of a revenue reduction for a
  1 19 fiscal year.
  1 20    Sec. 4.  Section 8.54, subsections 1 through 3, Code
  1 21 Supplement 2001, are amended to read as follows:
  1 22    1.  For the purposes of section 8.22A, this section, and
  1 23 sections 8.55 through 8.57:
  1 24    a.  "Adjusted revenue estimate" means the appropriate
  1 25 revenue estimate for the general fund for the following fiscal
  1 26 year as determined by the revenue estimating conference under
  1 27 section 8.22A, subsection 3, adjusted by subtracting estimated
  1 28 tax refunds payable from that estimated revenue and as
  1 29 determined by the conference, adding any new revenues which
  1 30 may be considered to be eligible for deposit in the general
  1 31 fund.
  1 32    a.  "Revenue reduction" means a reduction in revenue to the
  1 33 general fund of the state projected for a fiscal year due to a
  1 34 statutory reduction or elimination of a tax or fee that is
  1 35 enacted after the initial expenditure limitation amount for
  2  1 that fiscal year was established.
  2  2    b.  "New revenues" means moneys which are projected to be
  2  3 received by the state due to increased tax rates and fees or
  2  4 newly created taxes and fees over and above those moneys which
  2  5 are received due to state taxes and fees which are in effect
  2  6 as of January 1 following the December state revenue
  2  7 estimating conference meeting.  "New revenues" also includes
  2  8 moneys projected to be received by the general fund of the
  2  9 state due to new transfers over and above those moneys
  2 10 received by the general fund of the state due to transfers
  2 11 which are in effect as of January 1 following the December
  2 12 state revenue estimating conference meeting.  The department
  2 13 of management shall obtain concurrence from the revenue
  2 14 estimating conference on the eligibility of transfers to the
  2 15 general fund of the state which are to be considered as new
  2 16 revenue in determining the state general fund expenditure
  2 17 limitation.
  2 18    c.  "State general fund expenditure limitation" or
  2 19 "expenditure limitation" means the state general fund
  2 20 expenditure limitation computed in accordance with this
  2 21 section.
  2 22    2.  There is created a state general fund expenditure
  2 23 limitation for each fiscal year beginning on or after July 1,
  2 24 1993, calculated computed as provided in this section.
  2 25    3.  Except as otherwise provided in this section, the The
  2 26 revenue estimating conference at the meeting held on or before
  2 27 December 15 shall compute the initial state general fund
  2 28 expenditure limitation amount in accordance with this
  2 29 subsection for the succeeding fiscal year.  The initial state
  2 30 general fund expenditure limitation amount for a fiscal year
  2 31 shall be ninety-nine one hundred percent of the adjusted
  2 32 revenue estimate aggregate amount appropriated from the
  2 33 general fund of the state for the previous fiscal year, as
  2 34 adjusted by applying any of the adjustment factors listed in
  2 35 subsection 3A that are applicable to that aggregate amount.
  3  1 If an adjustment factor listed in subsection 3A becomes
  3  2 applicable after the initial expenditure limitation amount for
  3  3 a fiscal year was computed while the general assembly is in
  3  4 session, the initial expenditure limitation amount shall be
  3  5 revised by applying the applicable adjustment factor.
  3  6    Sec. 5.  Section 8.54, Code Supplement 2001, is amended by
  3  7 adding the following new subsection:
  3  8    NEW SUBSECTION.  3A.  An initial or revised expenditure
  3  9 limitation amount shall be subject to revision to the extent
  3 10 any of the following adjustment factors are applicable:
  3 11    a.  Changes made to the aggregate amount appropriated from
  3 12 the general fund of the state for the previous fiscal year
  3 13 shall be applied to the aggregate amount as follows:
  3 14    (1)  Any uniform reductions to appropriations ordered by
  3 15 the governor in accordance with section 8.31 shall be
  3 16 subtracted.
  3 17    (2)  Any enacted appropriation reduction shall be
  3 18 subtracted.
  3 19    (3)  Any appropriation amount that was subject to a veto or
  3 20 item veto by the governor shall be subtracted unless the
  3 21 appropriation amount was approved by the general assembly,
  3 22 notwithstanding the governor's objections, in accordance with
  3 23 article III, section 14, of the Constitution of the State of
  3 24 Iowa.
  3 25    (4)  Any enacted supplemental appropriation shall be added.
  3 26    b.  Changes made that will affect the amount available for
  3 27 appropriation for the fiscal year to which the expenditure
  3 28 limitation is applicable shall be applied to the aggregate
  3 29 amount appropriated from the general fund of the state for the
  3 30 previous fiscal year as follows:
  3 31    (1)  Any revenue reduction shall be subtracted.
  3 32    (2)  Any new revenue shall be added.
  3 33    (3)  If an estimate issued by the revenue estimating
  3 34 conference pursuant to section 8.22A, subsection 5, for either
  3 35 the fiscal year to which the expenditure limitation applies or
  4  1 the preceding fiscal year, increases or decreases by more than
  4  2 five percent from the latest comparable estimate, the
  4  3 expenditure limitation amount shall be adjusted accordingly.
  4  4    (4)  The moneys available for appropriation from the actual
  4  5 balance of the future fund created in section 8.57B as of
  4  6 November 30 of the fiscal year preceding the fiscal year to
  4  7 which the state general fund expenditure limitation applies
  4  8 shall be added in computing the initial expenditure
  4  9 limitation.  If at any time while the general assembly is in
  4 10 session during the fiscal year preceding the fiscal year to
  4 11 which the state general fund expenditure limitation is
  4 12 applicable, there is a new appropriation or transfer enacted
  4 13 or any other action taken that will reduce or increase the
  4 14 balance of the future fund available for appropriation for the
  4 15 fiscal year to which the expenditure limitation is applicable,
  4 16 the expenditure limitation amount shall be revised
  4 17 accordingly.
  4 18    Sec. 6.  Section 8.54, subsection 4, Code Supplement 2001,
  4 19 is amended to read as follows:
  4 20    4.  a.  The state general fund expenditure limitation
  4 21 amount provided for computed in accordance with this section
  4 22 shall be used by the governor in the preparation of the budget
  4 23 under section 8.22 and approval of the budget and by the
  4 24 general assembly in the budget process.  If a source for new
  4 25 revenues is proposed, the budget revenue projection used for
  4 26 that new revenue source for the period beginning on the
  4 27 effective date of the new revenue source and ending in the
  4 28 fiscal year in which the source is included in the revenue
  4 29 base shall be an amount determined by subtracting estimated
  4 30 tax refunds payable from the projected revenue from that new
  4 31 revenue source, multiplied by ninety-five percent.  If a new
  4 32 revenue source is established and implemented, the original
  4 33 state general fund expenditure limitation amount provided for
  4 34 in subsection 3 shall be readjusted to include ninety-five
  4 35 percent of the estimated revenue from the new revenue source.
  5  1    b.  If any adjustment is made while the general assembly is
  5  2 in session resulting in a revised expenditure limitation
  5  3 amount for a fiscal year that is lower than the initial
  5  4 amount, the governor shall transmit revised budget
  5  5 recommendations in accordance with section 8.21 and the
  5  6 general assembly shall utilize the revised expenditure
  5  7 limitation amount in the budget process for the fiscal year.
  5  8    Sec. 7.  Section 8.54, subsection 5, Code Supplement 2001,
  5  9 is amended by striking the subsection.
  5 10    Sec. 8.  Section 8.55, subsection 2, Code Supplement 2001,
  5 11 is amended to read as follows:
  5 12    2.  The maximum balance of the fund is the amount equal to
  5 13 five percent of the adjusted revenue estimate for the fiscal
  5 14 year.  If the amount of moneys in the Iowa economic emergency
  5 15 fund is equal to the maximum balance, moneys in excess of this
  5 16 amount shall be transferred to the general future fund created
  5 17 in section 8.57B.
  5 18    Sec. 9.  NEW SECTION.  8.57B  FUTURE FUND.
  5 19    1.  The future fund is created.  The fund shall be separate
  5 20 from the general fund of the state and the balance in the fund
  5 21 shall not be considered part of the balance of the general
  5 22 fund of the state.  The moneys credited to the fund are not
  5 23 subject to section 8.33 and shall not be transferred, used,
  5 24 obligated, appropriated, or otherwise encumbered except as
  5 25 provided in this section.
  5 26    2.  a.  Except as provided in paragraph "b", the moneys in
  5 27 the future fund shall only be used pursuant to an
  5 28 appropriation made by the general assembly.
  5 29    b.  Moneys in the future fund may be used for cash flow
  5 30 purposes during a fiscal year provided that any moneys so
  5 31 allocated are returned to the fund by the end of that fiscal
  5 32 year.
  5 33    c.  Except as provided in section 8.58, the future fund
  5 34 shall be considered a special account for the purposes of
  5 35 section 8.53 in determining the cash position of the general
  6  1 fund of the state for the payment of state obligations.
  6  2    3.  Notwithstanding section 12C.7, subsection 2, interest
  6  3 or earnings on moneys deposited in the future fund shall be
  6  4 credited to the rebuild Iowa infrastructure fund.
  6  5    Sec. 10.  APPLICABILITY.  This Act is first applicable to
  6  6 the budget for the fiscal year beginning July 1, 2003, and
  6  7 ending June 30, 2004.  
  6  8                           EXPLANATION
  6  9    This bill revises the state general fund expenditure
  6 10 limitation.  Under current law, the expenditure limitation
  6 11 amount for a fiscal year is established through adjustment of
  6 12 the revenue estimates made for a fiscal year by the revenue
  6 13 estimating conference in December of the previous fiscal year.
  6 14 The bill establishes the expenditure limitation amount for a
  6 15 fiscal year based upon the aggregate of the appropriations
  6 16 made from the general fund of the state for the previous
  6 17 fiscal year.  The bill makes numerous conforming changes
  6 18 throughout Code chapter 8, the budget and financial control
  6 19 Act.
  6 20    Code section 8.22A, relating to the revenue estimating
  6 21 conference, is amended.  The conference remains responsible
  6 22 for making budget estimates that are used in the budget
  6 23 process; however, language requiring the overall revenue
  6 24 estimate to be used in establishing the expenditure limitation
  6 25 is eliminated.  The requirement in current law for the
  6 26 conference to estimate the amount of tax refunds payable from
  6 27 revenue is moved and a new requirement is established to
  6 28 estimate the amount of an enacted revenue reduction's effect
  6 29 to reduce revenues available for expenditure under the
  6 30 previously calculated state general fund expenditure
  6 31 limitation amount for a fiscal year.
  6 32    Code section 8.54, relating to the state general fund
  6 33 expenditure limitation, is extensively amended.  The bill
  6 34 defines the terms "revenue reduction" and "expenditure
  6 35 limitation" and requires the revenue estimating conference to
  7  1 calculate the initial expenditure limitation amount for a
  7  2 fiscal year.  If any of the factors change after the initial
  7  3 amount is established, the initial expenditure limitation
  7  4 amount is to be revised.  The governor is required to revise
  7  5 the submitted budget if the revision results in a lower amount
  7  6 while the general assembly is in session.
  7  7    New Code section 8.57B establishes the future fund.  The
  7  8 fund is separate from the general fund of the state.  Any
  7  9 moneys remaining at the close of a fiscal year after the cash
  7 10 reserve fund and the Iowa economic emergency fund are full are
  7 11 transferred to the future fund.  The balance in the future
  7 12 fund available for appropriation is included in the
  7 13 calculation of the expenditure limitation.
  7 14    The provisions of the bill are first applicable to the
  7 15 budget for fiscal year 2003-2004.  
  7 16 LSB 6069YH 79
  7 17 jp/cf/24
     

Text: HF02239                           Text: HF02241
Text: HF02200 - HF02299                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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