HOUSE BILL REPORT
ESB 6091
BYSenators McDonald, Gaspard, Hayner and Vognild
Making an appropriation for the budget stabilization account.
BACKGROUND:
The budget stabilization account was created in 1981 to be implemented in the 1983-85 biennium. The statute specifies three types of transfers to the account by appropriation: transfers whenever personal income growth adjusted for inflation exceeds 3 percent; transfers of ending cash balances; and other transfers as determined by the Legislature.
Withdrawal of funds from the account requires a 60 percent favorable vote of each house. The funds may be used: to continue programs at budgeted levels if state revenues are less than forecast; to provide the Governor with reserve expenditure authority if revenues are less than forecast; for labor force training; and to reduce unemployment caused by economic cycles.
SUMMARY:
$200 million is appropriated from the general fund to the State Treasurer for immediate transfer to the budget stabilization account.
Appropriation: $200 million
Revenue: none
Fiscal Note: none requested
Effective Date:The bill contains an emergency clause and takes effect immediately.