Revision: Jan. 25, 2017, 3:30 p.m.
HB 569-FN-A - AS INTRODUCED
HOUSE BILL 569-FN-A
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
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.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
Be it Enacted by the Senate and House of Representatives in General Court convened:
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.
HB 569-FN-A- FISCAL NOTE
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
[ X ] General [ ] Education [ ] Highway [ X ] Other
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.
Department of Administrative Services and the State Treasury