Budget Stabilization Fund

Senate Bill [438

Sponsor:  Sen. Prusi

Committee:  Appropriations

First Analysis:  October 12, 2005

THE CONTENT OF THE BILL:

The bill would amend Sec. 353c of the Management and Budget Act to provide for a transfer from the Counter-Cyclical Budget and Economic Stabilization Fund (BSF) to the General Fund of $81.3 million at the close of fiscal year (FY) 2004-05. This transfer was part of an overall comprehensive proposal adopted by the Legislature in March 2005 to eliminate a projected FY 2004-05 General Fund/General Purpose budget deficit.

FISCAL INFORMATION:

         As part of the FY 2003-04 final budget book-closing, $81.3 million was transferred to the BSF. Senate Bill 438 would transfer this amount to the General Fund. This     transfer would leave approximately $2.4 million of interest earnings in the BSF. 

                                                                                                                       :

                                                                                                            Fiscal Analyst: Mitchell Bean    

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.