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.