BILL REQ. #:  H-3051.1 

Read first time 01/17/12.   Referred to Committee on Ways & Means.

     AN ACT Relating to requiring a minimum amount of operating budget reserves; adding a new section to chapter 43.88 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds a healthy budget reserve helps provide stability to the state budget process by reducing the likelihood of tax increases or severe budget cuts during economic downturns and helps guard against excessive spending during good economic times. The legislature further finds economists conclude a healthy state government budget reserve includes at least five percent of budgeted expenditures.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.88 RCW to read as follows:
     (1) The governor may not propose, and the legislature may not enact, any near general fund operating budget that does not set aside at least five percent of near general fund budgeted expenditures as a reserve amount.
     (2) For the purposes of this section, the following definitions apply:
     (a) "Near general fund" means the state general fund, pension funding stabilization account, the education legacy trust account created in RCW 83.100.230, and the Washington opportunity pathways account created in RCW 28B.76.526;
     (b) "Operating budget" means the omnibus operating appropriations act, or any combination of acts that make appropriations for operating budget purposes; and
     (c) "Reserve amount" means the unrestricted ending fund balance and the budget stabilization account created in RCW 43.79.490.