HB569 (2017) Detail

Requiring the reimbursement of dedicated funds transferred for other purposes.


HB 569-FN-A - AS INTRODUCED

 

 

2017 SESSION

17-0434

05/10

 

HOUSE BILL 569-FN-A

 

AN ACT requiring the reimbursement of dedicated funds transferred for other purposes.

 

SPONSORS: Rep. Shepardson, Ches. 10; Rep. Backus, Hills. 19; Rep. S. Harvey, Hills. 29; Rep. Roberts, Hills. 4; Rep. Danielson, Hills. 7

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill provides that before surplus funds are deposited in the revenue stabilization account, the funds shall be used to reimburse dedicated funds transferred for other purposes during the previous biennium.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0434

05/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT requiring the reimbursement of dedicated funds transferred for other purposes.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Revenue Stabilization Reserve Account; Reimbursement of Dedicated Funds.  Amend RSA 9:13-e, II to read as follows:

II.(a)  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 subject to the limitation in subparagraph (b), shall be transferred by the comptroller to a special nonlapsing revenue stabilization reserve account.  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.

(b)  Prior to deposit in the revenue stabilization reserve account, the surplus shall be reduced by the amount necessary to reimburse any dedicated fund or account identified in RSA 6:12, I(b) from which, during the previous biennium, funds were transferred to the general fund or otherwise used for a purpose not stated in the statutory authority for that fund or account.  If multiple dedicated funds or accounts are involved, the surplus funds shall be divided and dispersed to each in proportion to the amounts originally transferred from those funds or accounts, as necessary to make them whole.  The governor shall direct the comptroller to transfer such sums.

2  Effective Date.  This act shall take effect July 1, 2017.

 

LBAO

17-0434

1/18/17

 

HB 569-FN-A- FISCAL NOTE

AS INTRODUCED

 

AN ACT requiring the reimbursement of dedicated funds transferred for other purposes.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

   Appropriation

$0

$0

$0

$0

   Revenue

$0

Indeterminable

$0

Indeterminable

   Expenditures

$0

$0

$0

$0

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [ X ] Other

 

 

 

 

 

METHODOLOGY:

This bill provides before surplus funds are deposited in the revenue stabilization reserve account pursuant to RSA 9:13-e, the surplus funds would reimburse any dedicated funds, identified in RSA 6:12, from which funds were transferred in the previous biennium for a purpose other than the statutory purpose of the fund.  The Department of Administrative Services indicates this bill would not affect the overall total amount of state revenue, but would shift revenue from unrestricted to restricted.  With an effective date of July 1, 2017, the earliest reimbursement of dedicated funds would be at the end of the FY 2018-19 biennium based on transfers out of dedicated funds in the FY 2016-17 biennium.  Assuming there is a surplus on June 30, 2019 and based on transfers from dedicated funds as of January 13, 2017, $4,833,000 would be reimbursed to dedicated funds at the end of FY 2019. ($2.333 million to the employee and retiree benefit risk management fund, and $2.5 million to the education credentialing fund.)

 

The State Treasury indicates recent reports issued by credit rating agencies recommend the State maximize the level of funding statutorily permitted in the revenue stabilization fund and maintain it for several years to generate positive credit ratings for the State.  The Treasury also notes the rating agencies are critical of one-time budget balancing measures and State agencies are concerned when statutory constraints are introduced limiting the financial flexibility of policy makers.

 

AGENCIES CONTACTED:

Department of Administrative Services and the State Treasury

 

 

Links

HB569 at GenCourtMobile

Action Dates

Date Body Type
Jan. 31, 2017 House Hearing
Feb. 2, 2017 House Exec Session
Feb. 15, 2017 House Floor Vote

Bill Text Revisions

HB569 Revision: 859 Date: Jan. 25, 2017, 3:30 p.m.

Docket

Date Status
Jan. 5, 2017 Introduced 01/05/2017 and referred to Ways and Means HJ 3 P. 19
Jan. 31, 2017 Public Hearing: 01/31/2017 02:30 PM LOB 202
Feb. 2, 2017 Executive Session: 02/02/2017 LOB 202
Feb. 15, 2017 Committee Report: Inexpedient to Legislate for 02/15/2017 (Vote 12-9; RC) HC 11 P. 23
Minority Committee Report: Ought to Pass
Feb. 15, 2017 Inexpedient to Legislate: MA DV 184-154 02/15/2017 HJ 7 P. 48