House File 2545
HOUSE FILE
BY COMMITTEE ON APPROPRIATIONS
(SUCCESSOR TO HSB 698)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to state budget requirements involving the state
2 general fund expenditure limitation and the Iowa economic
3 emergency fund, and providing effective dates.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 6492HV 80
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PAG LIN
1 1 Section 1. Section 8.22A, subsection 3, Code Supplement
1 2 2003, is amended to read as follows:
1 3 3. By December 15 of each fiscal year the conference shall
1 4 agree to a revenue estimate for the fiscal year beginning the
1 5 following July 1. That estimate shall be used by the governor
1 6 in the preparation of the budget message under section 8.22
1 7 and by the general assembly in the budget process. If the
1 8 conference agrees to a different estimate at a later meeting
1 9 which projects a greater amount of revenue than the initial
1 10 estimate amount agreed to by December 15, the governor and the
1 11 general assembly shall continue to use the initial estimate
1 12 amount in the budget process for that fiscal year. However,
1 13 if the conference agrees to a different estimate at a later
1 14 meeting which projects a lesser amount of revenue than the
1 15 initial estimate amount, the governor and the general assembly
1 16 shall use the lesser amount in the budget process for that
1 17 fiscal year. As used in this subsection, "later meeting"
1 18 means only those later meetings which are held prior to the
1 19 conclusion of the regular session of the general assembly and,
1 20 if the general assembly holds an extraordinary session prior
1 21 to the commencement of the fiscal year to which the estimate
1 22 applies, those later meetings which are held before or during
1 23 the extraordinary session.
1 24 Sec. 2. Section 8.54, subsection 2, Code 2003, is amended
1 25 to read as follows:
1 26 2. There is created a state general fund expenditure
1 27 limitation for each fiscal year beginning on or after July 1,
1 28 1993, calculated as provided in this section. An expenditure
1 29 limitation shall be used for the portion of the budget process
1 30 commencing on the date the revenue estimating conference
1 31 agrees to a revenue estimate for the following fiscal year in
1 32 accordance with section 8.22A, subsection 3, and ending with
1 33 the governor's final approval or disapproval of the
1 34 appropriations bills applicable to that fiscal year that were
1 35 passed prior to July 1 of that fiscal year in a regular or
2 1 extraordinary legislative session.
2 2 Sec. 3. Section 8.55, subsection 2, paragraph a, as
2 3 enacted by 2002 Iowa Acts, Second Extraordinary Session,
2 4 chapter 1001, section 25, and as made effective by 2003 Iowa
2 5 Acts, chapter 179, section 40, is amended to read as follows:
2 6 a. The maximum balance of the fund is the amount equal to
2 7 two and one=half five percent of the adjusted revenue estimate
2 8 for the fiscal year. If the amount of moneys in the Iowa
2 9 economic emergency fund is equal to the maximum balance,
2 10 moneys in excess of this amount shall be transferred to the
2 11 general fund.
2 12 Sec. 4. Section 8.55, subsection 2, paragraph c, Code
2 13 Supplement 2003, is amended by striking the paragraph.
2 14 Sec. 5. Section 8.57, subsection 1A, paragraphs c and d,
2 15 as enacted by 2004 Iowa Acts, House File 2039, section 3, are
2 16 amended to read as follows:
2 17 c. The appropriation made in paragraph "a" shall continue
2 18 until the aggregate of the appropriations made or transferred
2 19 to the senior living trust fund pursuant to paragraph "a" of
2 20 this subsection and section 8.55, subsection 2, paragraph "c",
2 21 is equal to one hundred eighteen million dollars.
2 22 d. The aggregate amount of the appropriations to be
2 23 transferred from the Iowa economic emergency fund to the
2 24 senior living trust fund pursuant to section 8.55, subsection
2 25 2, paragraph "c", shall be reduced by the appropriations made
2 26 pursuant to paragraph "a" of this subsection.
2 27 Sec. 6. CONTINGENT EFFECTIVE DATE. The section of this
2 28 Act amending Code section 8.55, subsection 2, paragraph "a",
2 29 takes effect on July 1 of the fiscal year immediately
2 30 following the fiscal year in which all transfers have been
2 31 made from the Iowa economic emergency fund, in the aggregate
2 32 amount required by section 8.55, subsection 2, paragraphs "b"
2 33 and "d", Code Supplement 2003. The director of the department
2 34 of management shall notify the Iowa Code editor when the
2 35 transfers have been made.
3 1 Sec. 7. IMMEDIATE EFFECTIVE DATE. The sections of this
3 2 Act amending sections 8.22A and 8.54, being deemed of
3 3 immediate importance, take effect upon enactment.
3 4 EXPLANATION
3 5 This bill relates to state budget requirements for the
3 6 state general fund expenditure limitation and the Iowa
3 7 economic emergency fund.
3 8 Code section 8.22A, relating to the revenue estimating
3 9 conference, is amended. This Code section requires that by
3 10 December 15 of each fiscal year the conference must make an
3 11 estimate for the following fiscal year and that this estimate
3 12 must be used by the governor and the general assembly in the
3 13 budget process for the following fiscal year. The Code
3 14 section by definition provides that if, at a later meeting of
3 15 the conference held prior to the conclusion of the regular
3 16 session of the general assembly, the conference agrees to a
3 17 different estimate of a lesser amount of revenue, the lesser
3 18 amount is to be used in the budget process. The expenditure
3 19 limitation statute in Code section 8.54 provides for the
3 20 different estimate to be used in calculating the expenditure
3 21 limitation.
3 22 The bill amends Code section 8.22A to provide that if the
3 23 general assembly holds an extraordinary session prior to the
3 24 commencement of the fiscal year for which the estimate
3 25 applies, then an estimate of a lesser amount of revenue agreed
3 26 to at a meeting of the revenue estimating conference held
3 27 prior to or during the extraordinary session would be required
3 28 to be used in the budgeting process. The expenditure
3 29 limitation would also be adjusted. This section of the bill
3 30 takes effect upon enactment.
3 31 The bill amends Code section 8.54, relating to the
3 32 expenditure limitation, to specify the budget process time
3 33 period in which the limitation is to be used. The bill
3 34 provides that the time period commences on the date the
3 35 revenue estimating conference agrees to the revenue estimate
4 1 used by the governor and general assembly for the following
4 2 fiscal year and ends with the governor's final approval or
4 3 disapproval of the appropriations bills applicable to that
4 4 fiscal year that were passed prior to July 1 of that fiscal
4 5 year in a regular or extraordinary legislative session.
4 6 Code section 8.55, relating to the Iowa economic emergency
4 7 fund, is amended to strike duplicative language providing for
4 8 transfer of moneys to the senior living trust fund and to
4 9 increase the maximum balance of the fund from 2.5 percent to 5
4 10 percent of the adjusted revenue estimate for the fiscal year.
4 11 Currently, Code section 8.55 provides for transfer of $118
4 12 million from the Iowa economic emergency fund to the senior
4 13 living trust fund. In 2004 Iowa Acts, House File 2039, the
4 14 $118 million is provided under Code section 8.57 as the
4 15 initial allocation of the ending balance of the general fund
4 16 of state.
4 17 The change to increase the percentage used for the maximum
4 18 balance of the Iowa economic emergency fund has a contingent
4 19 effective date of July 1 of the fiscal year immediately
4 20 following the fiscal year in which the transfers from the fund
4 21 have been made in the required aggregate amount. Under
4 22 existing law in Code section 8.55, unless reduced by other
4 23 transfers, an aggregate of $141,751,000 is to be transferred
4 24 to the endowment for Iowa's health account of the tobacco
4 25 settlement trust fund once the Iowa economic emergency fund
4 26 reaches the maximum balance.
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