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