Text: HF02239 Text: HF02241 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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 ofa later meeting of the state revenue1 5estimating conference under section 8.22A, subsection 31 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 ofthe later1 10meeting of the state revenue estimating conferencethe 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 24a. "Adjusted revenue estimate" means the appropriate1 25revenue estimate for the general fund for the following fiscal1 26year as determined by the revenue estimating conference under1 27section 8.22A, subsection 3, adjusted by subtracting estimated1 28tax refunds payable from that estimated revenue and as1 29determined by the conference, adding any new revenues which1 30may be considered to be eligible for deposit in the general1 31fund.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 yearbeginning on or after July 1,2 241993,calculatedcomputed 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 beninety-nineone hundred percent of theadjusted2 32revenue estimateaggregate 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 amountprovided forcomputed 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 new4 25revenues is proposed, the budget revenue projection used for4 26that new revenue source for the period beginning on the4 27effective date of the new revenue source and ending in the4 28fiscal year in which the source is included in the revenue4 29base shall be an amount determined by subtracting estimated4 30tax refunds payable from the projected revenue from that new4 31revenue source, multiplied by ninety-five percent. If a new4 32revenue source is established and implemented, the original4 33state general fund expenditure limitation amount provided for4 34in subsection 3 shall be readjusted to include ninety-five4 35percent 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 thegeneralfuture 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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