H-4372.2 _______________________________________________
HOUSE BILL 2974
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State of Washington 52nd Legislature 1992 Regular Session
By Representatives Carlson, Silver, Vance and Paris
Read first time 02/07/92. Referred to Committee on Appropriations.
AN ACT Relating to appropriating funds for the budget stabilization account; amending RCW 43.88.520 and 43.88.530; and adding a new section to chapter 43.88 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 43.88.520 and 1981 c 280 s 1 are each amended to read as follows:
(1) The legislature finds that during periods of recession or slowing economic growth, receipts of state revenues may decline below projections, yet the demand for state services does not correspondingly lessen and may in fact increase. There is need for a means to assure that services required in such periods can be maintained at or near the level anticipated by the legislature when making appropriations. The legislature therefore finds that a budget stabilization account into which will be deposited state revenues during favorable periods of economic activity will provide a resource for the stable financing of essential state services during periods of revenue shortfall.
(2) "Favorable period of economic activity" means any period of time when the economic and revenue forecast council estimates future revenue will exceed the estimated or actual revenue for the preceding biennium.
NEW SECTION. Sec. 2. A new section is added to chapter 43.88 RCW to read as follows:
(1) The legislature must appropriate an amount equal to no less than one-half percent of the revenue received in the previous biennium for the budget stabilization account until the total amount equals three and one-half percent of the revenue received in the previous biennium.
(2) Funds will not be transferred during a biennium if revenue has remained stable or declined compared to the revenue received in the previous biennium.
Sec. 3. RCW 43.88.530 and 1982 1st ex.s. c 36 s 2 are each amended to read as follows:
(1) The state treasurer, pursuant to an appropriation under section 2 of this act, shall transfer to the stabilization account a sum equal to the annual growth rate in real personal income minus three percentage points, multiplied by general state revenues for the immediately preceding fiscal year. Unless waived pursuant to RCW 43.88.535, transfers shall be made by the state treasurer during each biennium in eight equal amounts not later than the last day of each quarter commencing September 30, 1983.
(2) The state treasurer pursuant to appropriation shall transfer the unobligated cash surplus in the general fund as determined by the director of financial management after the conclusion of each biennium and following the certification of general state revenues by the state treasurer, provided that such revenues do not exceed the state tax revenue limit. No further deposits shall be made to the stabilization account during a biennium when the amount of the account equals or exceeds eight percent of general state revenues for the biennium.