Text: HSB00165                          Text: HSB00167
Text: HSB00100 - HSB00199               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 166

Bill Text

PAG LIN
  1  1    Section 1.  Section 331.421, Code 2003, is amended by
  1  2 adding the following new subsection:
  1  3    NEW SUBSECTION.  1A.  "Budget year" is the fiscal year
  1  4 beginning during the calendar year in which a budget is first
  1  5 certified.
  1  6    Sec. 2.  Section 331.434, Code 2001, is amended by adding
  1  7 the following new subsection:
  1  8    NEW SUBSECTION.  8.  a.  Budgeted ending fund balances for
  1  9 a budget year in excess of twenty-five percent of budgeted
  1 10 expenditures in either the general fund or rural services fund
  1 11 for that budget year shall be explicitly reserved or
  1 12 designated for a specific purpose and specifically described
  1 13 in the certified budget.  The certified budget for the budget
  1 14 year shall include a description of any changes from the
  1 15 current fiscal year to the explicitly reserved or designated
  1 16 purpose for the excess ending fund balance as specifically
  1 17 described in the certified budget.  For purposes of this
  1 18 section, ending fund balances shall be determined either on a
  1 19 cash basis or an accrual basis, whichever is consistent with
  1 20 the method used for the county's budget.  The description
  1 21 shall include the projected date that the expenditures will be
  1 22 appropriated for the specific purpose.  Budgeted ending fund
  1 23 balances reserved or designated shall only be used for the
  1 24 purpose specifically described in the certified budget.  The
  1 25 certified budget shall not be amended for the purpose of
  1 26 changing the specific purpose after the budget year begins.
  1 27    b.  In a protest to the county budget under section
  1 28 331.436, the county shall have the burden of proving that the
  1 29 budgeted ending fund balances in excess of twenty-five percent
  1 30 are reasonably likely to be appropriated for the explicitly
  1 31 reserved or designated specific purpose by the date identified
  1 32 in the certified budget.
  1 33    c.  The budgeted ending fund balance in excess of twenty-
  1 34 five percent of expenditures for the general fund or rural
  1 35 services fund shall be considered an increase in an item in
  2  1 the budget for purposes of section 24.28.  The state appeal
  2  2 board may certify a decision in accordance with section 24.32
  2  3 that requires a reduction in the budgeted ending fund balance
  2  4 for a particular fund.
  2  5    Sec. 3.  EFFECTIVE AND APPLICABILITY DATES.  This Act,
  2  6 being deemed of immediate importance, takes effect upon
  2  7 enactment and applies to the fiscal year beginning July 1,
  2  8 2003, and all subsequent fiscal years.  
  2  9                           EXPLANATION
  2 10    This bill requires that if a county's ending fund balance
  2 11 for a budget year exceeds 25 percent of budgeted expenditures,
  2 12 the excess over 25 percent must be explicitly reserved or
  2 13 designated for a specific purpose.  The bill applies to ending
  2 14 fund balances in the general fund and the rural services fund.
  2 15 The bill defines "budget year".
  2 16    The bill provides that if the amount of the ending fund
  2 17 balance is protested to the state appeal board, the county has
  2 18 the burden of proving that the amount over 25 percent is
  2 19 reasonably likely to be appropriated for the reserved or
  2 20 designated purpose and that the amount is necessary,
  2 21 reasonable, and in the interest of the public welfare.
  2 22    The bill takes effect upon enactment and applies to fiscal
  2 23 years beginning on or after July 1, 2003.  
  2 24 LSB 1574YC 80
  2 25 sc/cl/14
     

Text: HSB00165                          Text: HSB00167
Text: HSB00100 - HSB00199               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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