House File 407 - Introduced
HOUSE FILE
BY SANDS, STRUYK, GRANZOW, WATTS,
HUSEMAN, JACOBS, RAECKER,
SODERBERG, WINDSCHITL, DOLECHECK,
KAUFMANN, CHAMBERS, DEYOE,
UPMEYER, TYMESON, CLUTE, HORBACH,
PAULSEN, and DE BOEF
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 1304HH 82
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PAG LIN
1 1 Section 1. Section 8.54, subsection 2, Code 2007, 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 2007, 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 more than two
1 25 percent over the adjusted revenue estimate used to establish
1 26 the expenditure limitation for the immediately preceding
1 27 fiscal 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, 2008, 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
2 32 more than 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, and for payment of other trial=related
4 24 expenses, one million dollars.
4 25 (g) The brucellosis and tuberculosis eradication fund
4 26 created in section 165.18, one million dollars.
4 27 (h) The agricultural drainage well water quality
4 28 assistance fund created in section 460.303, one million one
4 29 hundred thousand dollars.
4 30 (i) The property tax relief fund risk pool created in
4 31 section 426B.5, subsection 2, three million five hundred
4 32 thousand dollars.
4 33 (j) The title guaranty fund created in section 16.91, two
4 34 million seven hundred thousand dollars.
4 35 (k) The waste tire management fund created in section
5 1 455D.11C, four million six hundred thousand dollars.
5 2 (l) The groundwater protection fund established in section
5 3 455E.11, five million two hundred thousand dollars.
5 4 (m) The state department of transportation to be used for
5 5 recreational trails projects, five million five hundred
5 6 thousand dollars.
5 7 (n) The strategic investment fund created in section
5 8 15.313, three million dollars.
5 9 (o) The physical infrastructure assistance fund created in
5 10 section 15E.175, two million five hundred thousand dollars.
5 11 (p) The value=added agricultural products and processes
5 12 financial assistance fund created in section 15E.112, seven
5 13 hundred fifty thousand dollars.
5 14 (q) The school infrastructure fund created in section
5 15 12.82, twenty=two million dollars.
5 16 (2) When the amounts listed in subparagraph (1) have all
5 17 been distributed, any remaining amounts of the appropriation
5 18 made in paragraph "a" shall be annually distributed to the
5 19 account and funds listed in this subparagraph (2) until the
5 20 full amounts listed have been distributed. If the
5 21 appropriation is insufficient to fully fund all amounts listed
5 22 or remaining, the appropriation shall be prorated among the
5 23 account and funds based upon an amount's proportion of the
5 24 total amount to be distributed. The distribution of the
5 25 appropriation made in paragraph "a" shall continue in
5 26 succeeding fiscal years until the entire amount listed for
5 27 each account or fund in this subparagraph (2) has been
5 28 distributed. Moneys distributed shall be used for the
5 29 purposes of the account or fund to which distributed:
5 30 (a) The environment first fund created in section 8.57A,
5 31 sixty=nine million five hundred thousand dollars.
5 32 (b) The rebuild Iowa infrastructure fund created in
5 33 section 8.57, subsection 6, sixty million five hundred sixty
5 34 thousand dollars.
5 35 (c) The Iowa comprehensive petroleum underground storage
6 1 tank fund created in section 455G.3, forty=eight million
6 2 dollars.
6 3 c. This subsection is repealed on July 1 following the
6 4 fiscal year in which all amounts listed in paragraph "b" have
6 5 been paid in full. The treasurer of state shall notify the
6 6 Code editor when the amounts have been paid in full.
6 7 Sec. 3. EFFECTIVE AND APPLICABILITY DATES. The section of
6 8 this Act amending section 8.54, subsection 2, and the
6 9 provision of the section of this Act enacting section 8.54,
6 10 subsection 8, take effect July 1, 2008, and are first
6 11 applicable to the state general fund expenditure limitation
6 12 established for the fiscal year beginning July 1, 2009.
6 13 EXPLANATION
6 14 This bill relates to the state general fund expenditure
6 15 limitation by extending the duration of the limitation,
6 16 providing for inclusion under the limitation of appropriations
6 17 previously made from the state general fund that are made from
6 18 another fund, and establishing standing appropriations in the
6 19 event state general fund revenues are projected to increase by
6 20 a certain amount.
6 21 The bill requires the expenditure limitation to be used for
6 22 the budget process until the close of the fiscal year to which
6 23 the expenditure limitation applies. Current law provides the
6 24 expenditure limitation is applicable for the budget process
6 25 until the governor's final approval or disapproval of the
6 26 appropriations bills that were passed prior to July 1 of the
6 27 fiscal year to which the limitation applies. Under the bill,
6 28 once the fiscal year for which the expenditure limitation was
6 29 calculated commences, the expenditure limitation for that
6 30 fiscal year is not subject to adjustment or readjustment
6 31 except by law enacted for that purpose.
6 32 The bill provides a new requirement applies if the adjusted
6 33 revenue estimate used to establish the expenditure limitation
6 34 is projected to be more than 2 percent over the adjusted
6 35 revenue estimate for the immediately preceding fiscal year.
7 1 Under the new requirement, if an appropriation is made for a
7 2 fiscal year from a source other than the general fund of the
7 3 state for a designated purpose and in either of the two fiscal
7 4 years immediately preceding that fiscal year the designated
7 5 purpose was funded by an appropriation from the general fund
7 6 of the state, for the purposes of the state general fund
7 7 expenditure limitation, the appropriation from the other
7 8 source shall be considered to have been transferred to and
7 9 appropriated from the general fund of the state and shall be
7 10 counted as both a new revenue and an appropriation made under
7 11 the expenditure limitation amount. "New revenue" is a defined
7 12 term that means a revenue amount that was not included in the
7 13 estimate made by the revenue estimating conference that was
7 14 used to calculate the initial state general fund expenditure
7 15 limitation for a fiscal year. The state general fund
7 16 expenditure limitation is adjusted to include 95 percent of
7 17 the new revenue. The requirements apply to the initial and
7 18 immediately succeeding fiscal years for which the
7 19 appropriation is made from the other funding source.
7 20 The bill provides that if the adjusted revenue estimate
7 21 used to establish the expenditure limitation for the
7 22 succeeding fiscal year is projected to be an increase over the
7 23 adjusted revenue estimate for the fiscal year in progress by
7 24 at least a specified amount, certain standing limited
7 25 appropriations are made. "Adjusted revenue estimate" is a
7 26 defined term that means a projection approved by the revenue
7 27 estimating conference for purposes of the expenditure
7 28 limitation as adjusted by subtracting estimated tax refunds
7 29 payable from that estimated revenue and adding any new
7 30 revenues which may be considered to be eligible for deposit in
7 31 the general fund.
7 32 If the increase is projected to be more than 2 percent but
7 33 less than 4 percent, the amount of the standing appropriation
7 34 is 0.50 percent of the adjusted revenue estimate; for a
7 35 projected increase of 4 percent but less than 6 percent, the
8 1 amount is 1 percent of the adjusted revenue estimate; for an
8 2 increase of 6 percent but less than 8 percent, the amount is
8 3 1.5 percent of the adjusted revenue estimate; and for an
8 4 increase of 8 percent or more, the increase is 2 percent of
8 5 the adjusted revenue estimate. The amount of the standing
8 6 limited appropriation is counted under the expenditure
8 7 limitation amount for that fiscal year. The standing
8 8 appropriation is made to the treasurer of state for
8 9 distribution as provided in the bill to restore funding that
8 10 was appropriated from various funds and accounts in lieu of
8 11 the state general fund. These contingent annual standing
8 12 limited appropriations are first made for the fiscal year
8 13 beginning July 1, 2009.
8 14 The bill provides for distribution of the repayment funding
8 15 in two groups. The first group is to be repaid in the order
8 16 listed until all are paid in full. Once the first group is
8 17 repaid, the second group is to be repaid next. If the amount
8 18 of the standing appropriation is insufficient to pay in full
8 19 all the amounts listed for the second group, the
8 20 appropriations are to be prorated among the second group. The
8 21 distributions of the appropriations shall continue to be made
8 22 for the second group until all amounts listed are repaid.
8 23 Some provisions of the bill take effect July 1, 2008, and
8 24 are first applicable to the state general fund expenditure
8 25 limitation established for the fiscal year beginning July 1,
8 26 2009.
8 27 LSB 1304HH 82
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