House File 519 - Introduced
HOUSE FILE
BY DANDEKAR, CARROLL, HUSER,
HOGG, KURTENBACH, WISE,
PETERSEN, and STRUYK
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the state general fund expenditure limitation
2 and making appropriations to repay certain funds, and
3 providing effective and applicability dates.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 2228YH 81
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PAG LIN
1 1 Section 1. Section 8.54, subsection 2, Code 2005, is
1 2 amended to read as follows:
1 3 2. There is created a state general fund expenditure
1 4 limitation for each fiscal year calculated as provided in this
1 5 section. An expenditure limitation shall be used for the
1 6 portion of the budget process commencing on the date the
1 7 revenue estimating conference agrees to a revenue estimate for
1 8 the following fiscal year in accordance with section 8.22A,
1 9 subsection 3, and ending with the governor's final approval or
1 10 disapproval of the appropriations bills applicable to that
1 11 fiscal year that were passed prior to July 1 of that fiscal
1 12 year in a regular or extraordinary legislative session close
1 13 of the fiscal year for which the expenditure limitation was
1 14 calculated. Once the fiscal year for which the expenditure
1 15 limitation was calculated commences, the expenditure
1 16 limitation for that fiscal year is not subject to adjustment
1 17 or readjustment except by law enacted for that purpose.
1 18 Sec. 2. Section 8.54, Code 2005, is amended by adding the
1 19 following new subsections:
1 20 NEW SUBSECTION. 8. a. The requirements of this
1 21 subsection are only applicable under the state general fund
1 22 expenditure limitation for a fiscal year when the adjusted
1 23 revenue estimate used to establish the expenditure limitation
1 24 for that fiscal year represents an increase of two percent or
1 25 more over the adjusted revenue estimate used to establish the
1 26 expenditure limitation for the immediately preceding fiscal
1 27 year.
1 28 b. If an appropriation is made for a fiscal year from a
1 29 source other than the general fund of the state for a
1 30 designated purpose and in either of the two fiscal years
1 31 immediately preceding that fiscal year the designated purpose
1 32 was funded by an appropriation from the general fund of the
1 33 state, for the purposes of the state general fund expenditure
1 34 limitation, the amount of the appropriation from the other
1 35 source shall be considered to have been transferred to and
2 1 appropriated from the general fund of the state and shall be
2 2 counted as both a new revenue causing readjustment of the
2 3 expenditure limitation amount and as an appropriation made
2 4 under the expenditure limitation amount. Subject to the
2 5 applicability condition in paragraph "a", the requirements of
2 6 this subsection shall apply to either or both the initial and
2 7 immediately succeeding fiscal years for which the
2 8 appropriation is made from the other funding source.
2 9 NEW SUBSECTION. 9. a. Commencing during the fiscal year
2 10 that begins July 1, 2006, if the adjusted revenue estimate
2 11 used to establish the expenditure limitation for the
2 12 succeeding fiscal year represents an increase over the
2 13 adjusted revenue estimate used to establish the expenditure
2 14 limitation for the fiscal year in progress by a percentage
2 15 amount listed in this paragraph, there is appropriated from
2 16 the general fund of the state to the office of the treasurer
2 17 of state for the succeeding fiscal year, the indicated amount.
2 18 An appropriation made pursuant to this subsection shall be
2 19 counted under the state general fund expenditure limitation
2 20 amount for the fiscal year for which the appropriation is
2 21 made. The treasurer of state shall distribute the
2 22 appropriation as provided in paragraph "b" to be used to
2 23 restore funding that was transferred to the general fund of
2 24 the state or appropriated from various funds and accounts in
2 25 lieu of funding from the general fund of the state. The
2 26 appropriation made in this paragraph shall continue on an
2 27 annual basis until the amounts listed in paragraph "b" have
2 28 all been distributed. If the amount appropriated would exceed
2 29 the amount remaining to be distributed, the appropriation
2 30 shall be reduced by the excess.
2 31 (1) For an increase in the adjusted revenue estimate of at
2 32 least two percent but less than four percent, the
2 33 appropriation made in this paragraph "a" shall be an amount
2 34 equal to one=half of one percent of the adjusted revenue
2 35 estimate used to establish the state general fund expenditure
3 1 limitation for the fiscal year for which the appropriation is
3 2 made.
3 3 (2) For an increase in the adjusted revenue estimate of at
3 4 least four percent but less than six percent, the
3 5 appropriation made in this paragraph "a" shall be an amount
3 6 equal to one percent of the adjusted revenue estimate used to
3 7 establish the state general fund expenditure limitation for
3 8 the fiscal year for which the appropriation is made.
3 9 (3) For an increase in the adjusted revenue estimate of at
3 10 least six percent but less than eight percent, the
3 11 appropriation made in this paragraph "a" shall be an amount
3 12 equal to one and one=half percent of the adjusted revenue
3 13 estimate used to establish the state general fund expenditure
3 14 limitation for the fiscal year for which the appropriation is
3 15 made.
3 16 (4) For an increase in the adjusted revenue estimate of
3 17 eight percent or more, the appropriation made in this
3 18 paragraph "a" shall be an amount equal to two percent of the
3 19 adjusted revenue estimate used to establish the state general
3 20 fund expenditure limitation for the fiscal year for which the
3 21 appropriation is made.
3 22 b. The appropriation made in paragraph "a" shall be
3 23 annually, if necessary, distributed as provided in this
3 24 paragraph "b". Unless otherwise provided by law,
3 25 notwithstanding section 8.33, moneys distributed in accordance
3 26 with this paragraph that remain unencumbered or unobligated at
3 27 the close of the fiscal year shall not revert but shall remain
3 28 available for expenditure for the purposes designated until
3 29 expended.
3 30 (1) Moneys appropriated in paragraph "a" shall be
3 31 distributed to the funds and departments listed in this
3 32 subparagraph, in the order and amounts listed until the full
3 33 amounts listed have been distributed. To the extent the
3 34 appropriation for a fiscal year is insufficient to fully fund
3 35 an amount listed or remaining, the amount of the insufficiency
4 1 shall be distributed from the next succeeding appropriation or
4 2 appropriations. When all amounts listed in this subparagraph
4 3 have been distributed in full, any remaining amounts of the
4 4 appropriation made in paragraph "a" shall be distributed as
4 5 provided in subparagraph (2). Moneys distributed pursuant to
4 6 this subparagraph (1) shall be used for the purposes of the
4 7 fund or department to which distributed, unless a purpose is
4 8 stated with the amount:
4 9 (a) The innovations fund created in section 8.63, four
4 10 hundred thousand dollars.
4 11 (b) The state department of transportation to be used for
4 12 aviation hangars, three hundred sixty thousand dollars, and
4 13 for airport engineering studies and improvement projects,
4 14 three hundred forty=seven thousand dollars.
4 15 (c) The special all=terrain vehicle fund created pursuant
4 16 to section 321I.8, eight hundred thousand dollars.
4 17 (d) The victim compensation fund established in section
4 18 915.94, one million dollars.
4 19 (e) The special snowmobile fund created pursuant to
4 20 section 321G.7, one million dollars.
4 21 (f) The revolving fund created in section 602.1302, for
4 22 the purpose of paying jury and witness fees and mileage by the
4 23 judicial branch, one million dollars.
4 24 (g) The brucellosis and tuberculosis eradication fund
4 25 created in section 165.18, one million dollars.
4 26 (h) The alternative drainage system assistance fund
4 27 created in section 460.303, one million one hundred thousand
4 28 dollars.
4 29 (i) The property tax relief fund risk pool created in
4 30 section 426B.5, subsection 2, one million five hundred
4 31 thousand dollars.
4 32 (j) The title guaranty fund created in section 16.91, two
4 33 million seven hundred thousand dollars.
4 34 (k) The waste tire management fund created in section
4 35 455D.11C, four million six hundred thousand dollars.
5 1 (l) The groundwater protection fund established in section
5 2 455E.11, five million two hundred thousand dollars.
5 3 (m) The state department of transportation to be used for
5 4 recreational trails projects, five million five hundred
5 5 thousand dollars.
5 6 (n) The strategic investment fund created in section
5 7 15.313, three million dollars.
5 8 (o) The physical infrastructure assistance fund created in
5 9 section 15E.175, two million five hundred thousand dollars.
5 10 (p) The value=added agricultural products and processes
5 11 financial assistance fund created in section 15E.112, seven
5 12 hundred fifty thousand dollars.
5 13 (q) The school infrastructure fund created in section
5 14 12.82, twenty=two million dollars.
5 15 (2) When the amounts listed in subparagraph (1) have all
5 16 been distributed, any remaining amounts of the appropriation
5 17 made in paragraph "a" shall be annually distributed to the
5 18 account and funds listed in this subparagraph (2) until the
5 19 full amounts listed have been distributed. If the
5 20 appropriation is insufficient to fully fund all amounts listed
5 21 or remaining, the appropriation shall be prorated among the
5 22 account and funds based upon an amount's proportion of the
5 23 total amount to be distributed. The distribution of the
5 24 appropriation made in paragraph "a" shall continue in
5 25 succeeding fiscal years until the entire amount listed for
5 26 each account or fund in this subparagraph (2) has been
5 27 distributed. Moneys distributed shall be used for the
5 28 purposes of the account or fund to which distributed:
5 29 (a) The endowment for Iowa's health account of the tobacco
5 30 settlement trust fund created pursuant to section 12E.12, four
5 31 hundred twenty=nine million one hundred thousand dollars.
5 32 (b) The environment first fund created in section 8.57A,
5 33 fifty=four million five hundred thousand dollars.
5 34 (c) The rebuild Iowa infrastructure fund created in
5 35 section 8.57, subsection 6, forty=three million eight hundred
6 1 thousand dollars.
6 2 (d) The senior living trust fund created in section
6 3 249H.4, four hundred forty=six million dollars.
6 4 (e) The Iowa comprehensive petroleum underground storage
6 5 tank fund created in section 455G.3, forty=eight million
6 6 dollars.
6 7 (f) The cash reserve fund created in section 8.56, two
6 8 hundred ninety million dollars.
6 9 (3) The aggregate amount of the appropriations to be
6 10 transferred from the Iowa economic emergency fund to the
6 11 senior living trust fund and the endowment for Iowa's health
6 12 account of the tobacco settlement trust fund pursuant to
6 13 section 8.55, subsection 2, paragraphs "b" and "c", and the
6 14 amount to be transferred to the senior living trust fund
6 15 pursuant to section 8.57, subsection 2, paragraph "d", shall
6 16 be reduced by the distributions made to the fund and account
6 17 in accordance with subparagraph (2). The amounts to be
6 18 distributed to the senior living trust fund and the endowment
6 19 for Iowa's health account in accordance with subparagraph (2)
6 20 shall be reduced by any amounts transferred to the fund or
6 21 account pursuant to section 8.55, subsection 2, paragraphs "b"
6 22 and "c", or section 8.57, subsection 2, paragraph "d".
6 23 c. This subsection is repealed on July 1 following the
6 24 fiscal year in which all amounts listed in paragraph "b" have
6 25 been paid in full. The treasurer of state shall notify the
6 26 Code editor when the amounts have been paid in full.
6 27 Sec. 3. Section 8.55, subsection 2, paragraphs b, c, and
6 28 d, Code 2005, are amended to read as follows:
6 29 b. Notwithstanding paragraph "a", any moneys in excess of
6 30 the maximum balance in the economic emergency fund after the
6 31 distribution of the surplus in the general fund of the state
6 32 at the conclusion of the fiscal year beginning July 1, 2002,
6 33 and subsequent fiscal years, shall not be transferred to the
6 34 general fund of the state but shall be transferred to the
6 35 endowment for Iowa's health account of the tobacco settlement
7 1 trust fund. The amount transferred under this paragraph shall
7 2 not exceed the difference between forty million dollars and
7 3 the total amount transferred to the endowment for Iowa's
7 4 health account pursuant to 2001 Iowa Acts, chapter 177,
7 5 section 2, as amended by 2001 Iowa Acts, chapter 187, section
7 6 28, and previous fiscal years.
7 7 c. Notwithstanding paragraph "a", any moneys in excess of
7 8 the maximum balance in the economic emergency fund after the
7 9 distribution of the surplus in the general fund of the state
7 10 at the conclusion of each fiscal year and after the
7 11 appropriate amount has been transferred pursuant to paragraph
7 12 "b", shall not be transferred to the general fund of the state
7 13 but shall be transferred to the senior living trust fund. The
7 14 total amount transferred, in the aggregate, under this
7 15 paragraph, section 8.54, subsection 9, paragraph "b", and
7 16 section 8.57, subsection 2, paragraph "d", for all fiscal
7 17 years shall not exceed one four hundred eighteen forty=six
7 18 million dollars.
7 19 d. c. Notwithstanding paragraph "a", any moneys in excess
7 20 of the maximum balance in the economic emergency fund after
7 21 the distribution of the surplus in the general fund of the
7 22 state at the conclusion of each fiscal year and after the
7 23 appropriate amounts have been transferred pursuant to
7 24 paragraphs paragraph "b" and "c" shall not be transferred to
7 25 the general fund of the state but shall be transferred to the
7 26 endowment for Iowa's health account of the tobacco settlement
7 27 trust fund. The total amount transferred, in the aggregate,
7 28 under this paragraph for all fiscal years shall not exceed the
7 29 difference between one four hundred thirty=one twenty=nine
7 30 million five one hundred thirty=six thousand dollars and the
7 31 amounts transferred to the endowment for Iowa's health account
7 32 to repay the amounts transferred or appropriated from the
7 33 endowment for Iowa's health account in 2002 Iowa Acts, chapter
7 34 1165, 2002 Iowa Acts, chapter 1166, 2002 Iowa Acts, chapter
7 35 1167, 2002 Iowa Acts, Second Extraordinary Session, chapter
8 1 1003, 2003 Iowa Acts, chapter 183, and 2004 Iowa Acts, chapter
8 2 1175, and the amounts distributed to the endowment for Iowa's
8 3 health account pursuant to section 8.54, subsection 9,
8 4 paragraph "b".
8 5 Sec. 4. Section 8.57, subsection 2, paragraph d, Code
8 6 2005, is amended to read as follows:
8 7 d. The aggregate amount of the appropriations to be
8 8 transferred from the Iowa economic emergency fund to the
8 9 senior living trust fund pursuant to section 8.55, subsection
8 10 2, paragraph "c" "b", shall be reduced by the appropriations
8 11 made pursuant to paragraph "a" of this subsection and the
8 12 amounts distributed to the senior living trust fund pursuant
8 13 to section 8.54, subsection 9, paragraph "b".
8 14 Sec. 5. EFFECTIVE AND APPLICABILITY DATES. The section of
8 15 this Act amending section 8.54, subsection 2, and the
8 16 provision of the section of this Act enacting section 8.54,
8 17 subsection 8, take effect July 1, 2006, and are first
8 18 applicable to the state general fund expenditure limitation
8 19 established for the fiscal year beginning July 1, 2007.
8 20 EXPLANATION
8 21 This bill relates to the state general fund expenditure
8 22 limitation by extending the duration of the limitation,
8 23 providing for inclusion under the limitation of appropriations
8 24 previously made from the general fund, and establishing
8 25 standing appropriations in the event general fund revenues are
8 26 projected to increase by a certain amount.
8 27 The bill requires the expenditure limitation to be used for
8 28 the budget process until the close of the fiscal year to which
8 29 the expenditure limitation applies. Current law provides the
8 30 expenditure limitation is applicable for the budget process
8 31 until the governor's final approval or disapproval of the
8 32 appropriations bills that were passed prior to July 1 of the
8 33 fiscal year to which the limitation applies. Under the bill,
8 34 once the fiscal year for which the expenditure limitation was
8 35 calculated commences, the expenditure limitation for that
9 1 fiscal year is not subject to adjustment or readjustment
9 2 except by law enacted for that purpose.
9 3 The bill provides a new requirement applies if the adjusted
9 4 revenue estimate used to establish the expenditure limitation
9 5 is projected to be 2 percent or more over the adjusted revenue
9 6 estimate for the immediately preceding fiscal year. Under the
9 7 new requirement, if an appropriation is made for a fiscal year
9 8 from a source other than the general fund of the state for a
9 9 designated purpose and in either of the two fiscal years
9 10 immediately preceding that fiscal year the designated purpose
9 11 was funded by an appropriation from the general fund of the
9 12 state, for the purposes of the state general fund expenditure
9 13 limitation, the appropriation from the other source shall be
9 14 considered to have been transferred to and appropriated from
9 15 the general fund of the state and shall be counted as both a
9 16 new revenue and an appropriation made under the expenditure
9 17 limitation amount. "New revenue" is a defined term that means
9 18 a revenue amount that was not included in the estimate made by
9 19 the revenue estimating conference that was used to calculate
9 20 the initial state general fund expenditure limitation for a
9 21 fiscal year. The state general fund expenditure limitation is
9 22 adjusted to include 95 percent of the new revenue. The
9 23 requirements apply to the initial and immediately succeeding
9 24 fiscal years for which the appropriation is made from the
9 25 other funding source.
9 26 The bill provides that if the adjusted revenue estimate
9 27 used to establish the expenditure limitation for the
9 28 succeeding fiscal year is projected to be an increase over the
9 29 adjusted revenue estimate for the fiscal year in progress by
9 30 at least a specified amount, certain standing limited
9 31 appropriations are made. "Adjusted revenue estimate" is a
9 32 defined term meaning a projection approved by the revenue
9 33 estimating conference for purposes of the expenditure
9 34 limitation as adjusted by subtracting estimated tax refunds
9 35 payable from that estimated revenue and adding any new
10 1 revenues which may be considered to be eligible for deposit in
10 2 the general fund.
10 3 If the increase is projected to be at least 2 percent but
10 4 less than 4 percent, the amount of the standing appropriation
10 5 is 0.50 percent of the adjusted revenue estimate; for a
10 6 projected increase of 4 percent but less than 6 percent, the
10 7 amount is 1 percent of the increase; for an increase of 6
10 8 percent but less than 8 percent, the amount is 1.5 percent of
10 9 the adjusted revenue estimate; and for an increase of 8
10 10 percent or more, the increase is 2 percent of the adjusted
10 11 revenue estimate. The amount of the standing limited
10 12 appropriation is counted under the expenditure limitation
10 13 amount for that fiscal year. The standing appropriation is
10 14 made to the treasurer of state for distribution as provided in
10 15 the bill to restore funding that was appropriated from various
10 16 funds and accounts in lieu of the general fund. These
10 17 contingent annual standing limited appropriations are first
10 18 made for the fiscal year beginning July 1, 2007.
10 19 The bill provides for distribution of the repayment funding
10 20 in two groups. The first group is to be repaid in the order
10 21 listed until all are paid in full. Once the first group is
10 22 repaid, the second group is to be repaid next. If the amount
10 23 of the standing appropriation is insufficient to pay in full
10 24 all the amounts listed for the second group, the
10 25 appropriations are to be prorated among the second group. The
10 26 distributions of the appropriations shall continue to be made
10 27 for the second group until all amounts listed are repaid.
10 28 The bill includes conforming changes to existing repayment
10 29 mechanisms for the endowment for Iowa's health account of the
10 30 tobacco settlement trust fund and the senior living trust fund
10 31 so that there is no duplication in repayments.
10 32 Some provisions of the bill take effect July 1, 2006, and
10 33 are first applicable to the state general fund expenditure
10 34 limitation established for the fiscal year beginning July 1,
10 35 2007.
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