HB 1672-FN-A-LOCAL - AS INTRODUCED
2016 SESSION
\t16-2054
\t05/10
HOUSE BILL\t1672-FN-A-LOCAL
AN ACT\trelative to excess federal matching funds, property tax relief, and general fund appropriations.
SPONSORS:\tRep. Brewster, Merr. 21
COMMITTEE:\tWays and Means
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ANALYSIS
\tThis bill:
\tI. Provides for the deposit of excess federal matching funds in the revenue stabilization account.
\tII. Requires that excess revenue stabilization account funds be used to provide property tax relief.
\tIII. Establishes a reporting requirement for all state agencies that receive general funds.
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Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2054
\t05/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to excess federal matching funds, property tax relief, and general fund appropriations.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Revenue Stabilization Account; Federal Matching Funds. Amend RSA 9:13-e, II to read as follows:
\t\tII. There is hereby established within the general fund general ledger a revenue stabilization reserve account. At the close of the fiscal biennium ending June 30, 2001, and at the close of each fiscal biennium thereafter, any surplus, as determined by the official audit performed pursuant to RSA 21-I:8, II(a), and any excess federal matching funds, shall be transferred by the comptroller to a special nonlapsing revenue stabilization reserve account; provided, however, that in any single fiscal year the total of such transfer shall not exceed 1/2 of the total potential maximum balance allowable under paragraph V. The comptroller is hereby directed to establish the revenue stabilization reserve account in which to deposit any money received from a general fund operating budget surplus. The state treasurer shall invest funds in this account as authorized by RSA 6:8. The interest so earned shall [be deposited as unrestricted general fund revenue] remain in the revenue stabilization reserve account.
\t2 Excess Revenue Stabilization Reserve Account Funds; Property Tax Relief. Amend RSA 9:13-e, V to read as follows:
\t\tV.(a) If, after the requirements of paragraphs II-IV have been met and the balance remaining in the revenue stabilization reserve account is in excess of [an amount equal to 10 percent of the actual general fund unrestricted revenues for the most recently completed fiscal year]$100,000,000, then such excess shall be transferred, without further action, to the [general fund surplus] property tax relief account established in subparagraph (b).
\t\t\t(b) There is established in the office of the state treasurer a property tax relief account, which shall be continually appropriated to the department of revenue administration. Any moneys transferred into this account shall, at the end of a fiscal biennium, be used by the department to provide property tax relief for New Hampshire residents.
\t3 Special Fund. Amend 6:12, I(b) by inserting after subparagraph (331) the following new subparagraph:
\t\t\t\t(332) Moneys transferred to the property tax relief account, established in RSA 9:13-e, V(b).
\t4 New Section; Reporting Requirement for Agencies that Receive General Funds. Amend RSA 9 by inserting after section 9-c the following new section:
\t9-d Reporting Requirement for Agencies that Receive General Funds.
\t\tI. Each agency or department of the legislative, judicial, and executive branch that receives a general fund appropriation shall complete and file an annual report with the commissioner of administrative services on or before January 1 of each year for the preceding fiscal year. The report shall identify the program or activity funded by the appropriation and compare actual expenditures to amounts budgeted for that particular program or activity.
\t\tII. No general fund transfers shall be disbursed to a department or agency if the department or agency has not filed the report required under this section for the preceding fiscal year.
\t\tIII. Reports submitted under this section shall be public records under RSA 91-A and available to the public upon request.
\t5 Effective Date. This act shall take effect July 1, 2016.
\t\t\t\t\t\t\t\t\t\t\t16-2054
\t\t\t\t\t\t\t\t\t\t\t12/23/15
HB 1672-FN-A-LOCAL- FISCAL NOTE
AN ACT\trelative to excess federal matching funds, property tax relief, and general fund appropriations.
FISCAL IMPACT:
The Department of Treasury and Department of Revenue Administration state this bill, as introduced, may increase state revenue and expenditures by an indeterminable amount in FY 2017 and each year thereafter. There will be no fiscal impact to county and local revenue and expenditures.
This bill establishes a continually appropriated dedicated fund.
The Office of Legislative Budget Assistant is awaiting information from the Department of Administrative Services relative to the potential fiscal impact of this bill. The Department was contacted on 11/02/15 and again on 12/15/15 to provide the information.
METHODOLOGY:
The Department of Treasury and Department of Revenue Administration state the proposed legislation provides for the crediting of any excess federal matching funds to the nonlapsing revenue stabilization account. Additional investment earnings generated from the excess federal matching funds will be credited to the revenue stabilization reserve account and as a result, revenue would increase by an indeterminable amount. This bill establishes a $100,000,000 maximum balance in the revenue stabilization reserve account at the end of each biennium. The Department of Treasury states that setting a lower maximum balance in this account could impact the state's credit rating. The Department of Revenue Administration states this bill establishes the property tax relief account, which will be continually appropriated to the Department to provide property tax relief for low-income residents. Funds in revenue stabilization account in excess of $100,000,000 shall be transfered to the property tax relief account. The Department of Revenue Administration states it is unclear whether funds directed to Property Tax Relief Account are only for low-income residents or all the individuals participating in the Low and Moderate Income Homeowners Property Tax Relief Program administered by the Department. To the extent additional funds are available for the program, states expenditures may increase. The Department of Treasury and Department of Revenue Administration state this bill requires each agency receiving general funds to file an annual report identifying each program or activity funded by an appropriation and comparing actual expenditures to amounts budgeted. Such costs can be absorbed by the Departments' existing budgets.
The Judicial Branch states this bill will not have a significant fiscal impact on its operations.