35-144

35-144. Budget stabilization fund;
definitions

A. The budget stabilization fund is established consisting of monies transferred
from the state general fund pursuant to subsection B of this section. The state
treasurer shall administer the fund and invest and divest monies in the fund as provided
by sections 35-313 and 35-314.02, and monies earned from investment shall be credited to
the fund. Except as provided by this section:

1. Monies in the fund are exempt from the provisions of section 35-190 relating to
the reversion of monies to the state general fund.

2. The monies in the fund are separate monies to be used only for the purposes of
the fund.

B. In a calendar year in which the annual growth rate exceeds the trend growth
rate, the excess growth when multiplied by total general fund revenue of the fiscal year
ending in the calendar year determines the amount to be appropriated by the legislature
to the budget stabilization fund in the fiscal year in which the calendar year ends.

C. In a calendar year in which the annual growth rate is both less than two per
cent and less than the trend growth rate, the difference between the annual growth rate
and the trend growth rate when multiplied by the total general fund revenue of the fiscal
year ending in the calendar year determines the amount to be transferred by the
legislature from the budget stabilization fund to the state general fund at the end of
the fiscal year in which the calendar year ends. The transfer calculated pursuant to
this subsection shall not exceed the available balance in the fund, nor shall the
legislature transfer an amount which exceeds the amount sufficient to balance the general
fund budget.

D. The legislature shall pass a bill which contains the emergency clause if the
legislature either:

1. Reduces the amount for appropriation to the budget stabilization fund under
subsection B of this section.

2. Increases the amount for transfer to the state general fund under subsection C
of this section.

E. The annual budget recommendations of the governor and the joint legislative
budget committee shall include estimates of appropriations or transfers required under
subsection B or C of this section.

F. A final determination of the amount to be appropriated to or transferred from
the budget stabilization fund shall be made using personal income and price deflator
estimates as reported in the second calendar quarter for the preceding calendar year.
The economic estimates commission shall determine the annual growth rate, the trend
growth rate and the required appropriation to or transfer from the budget stabilization
fund at its first meeting following the second calendar quarter report of the United
States department of commerce, but not later than June 1. The commission shall certify
and report its findings to the governor, the state treasurer, the president of the
senate, the speaker of the house of representatives and the joint legislative budget
committee.

G. The appropriation calculated pursuant to subsection B of this section may be
included in the general appropriation bill for that fiscal year. Any additional
appropriation calculated pursuant to subsection F of this section shall be made by
separate act.

H. At the end of a fiscal year, the budget stabilization fund balance shall not
exceed 5.634 per cent for fiscal year 1997-1998, 6.333 per cent for fiscal year 1998-1999
and seven per cent for fiscal year 1999-2000 and each subsequent fiscal year of general
fund revenue for each fiscal year. Any surplus monies above the allowable percentages
shall be transferred by the state treasurer to the state general fund.

I. The state treasurer may temporarily divest monies in the budget stabilization
fund to avoid a negative cash balance in operating monies. The amount divested shall not
exceed the amount required to meet immediate cash needs. The state treasurer may divest
monies in the budget stabilization fund only when the general fund has a negative cash
balance.

J. In this section:

1. "Adjusted personal income" means personal income minus transfer payments, as
reported by the United States department of commerce, bureau of economic analysis, or its
successor agency.

2. "Annual growth rate" means the percentage change in real adjusted personal
income in the calendar year ending during a fiscal year as compared to real adjusted
personal income for the preceding calendar year. The annual growth rate shall be rounded
to the nearest one-hundredth of one per cent.

3. "GDP price deflator" means the gross domestic product price deflator reported by
the United States department of commerce, bureau of economic analysis, or its successor
agency.

4. "Personal income" means the total personal income of all persons in this state
reported by the United States department of commerce, bureau of economic analysis, or its
successor agency.

5. "Real adjusted personal income" means an amount which is determined by dividing
adjusted personal income by the GDP price deflator and multiplying the result by one
hundred.

6. "Transfer payments" means that portion of personal income which represents a
government expenditure for which no service is rendered or product is delivered, as
determined by the United States department of commerce, bureau of economic analysis, or
its successor agency.

7. "Trend growth rate" means the average annual growth rate for the most recent
seven calendar years, rounded to the nearest one-hundredth of one per cent.