Bill Text: OH HB363 | 2011-2012 | 129th General Assembly | Introduced

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Bill Title: To increase the balance that must exist in the Budget Stabilization Fund, from 5% to 10% of the General Revenue Fund revenue, before revenue surpluses are applied to income tax reductions.

Spectrum: Strong Partisan Bill (Republican 30-2)

Status: (Introduced - Dead) 2011-11-01 - To Finance & Appropriations [HB363 Detail]

Download: Ohio-2011-HB363-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 363

Representative Duffey 

Cosponsors: Representatives Amstutz, Blessing, Terhar, Peterson, Roegner, McClain, Rosenberger, Wachtmann, Sears, Derickson, Butler, Grossman, Uecker, Baker, Henne, Hackett, Newbold, Hill, Ruhl, Stebelton, Hagan, C., Hall, Stinziano, Schuring, Stautberg, Sprague, Adams, R., Patmon, Huffman, Beck, Brenner 

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A BILL

To amend sections 131.43 and 131.44 of the Revised

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Code to increase the balance that must exist in

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the Budget Stabilization Fund, from 5% to 10% of

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the General Revenue Fund revenue, before revenue

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surpluses are applied to income tax reductions.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 131.43 and 131.44 of the Revised	6
Code be amended to read as follows:	7

Sec. 131.43.  There is hereby created in the state treasury	8
the budget stabilization fund. It is the intent of the general	9
assembly to maintain an amount of money in the budget	10
stabilization fund that amounts to approximately fiveten per cent	11
of the general revenue fund revenues for the preceding fiscal	12
year. The governor shall include in the state budget hethe	13
governor submits to the general assembly under section 107.03 of	14
the Revised Code proposals for transfers between the general	15
revenue fund and the budget stabilization fund for the ensuing	16
fiscal biennium. The balance in the fund may be combined with the	17
balance in the general revenue fund for purposes of cash	18
management.	19

Sec. 131.44.  (A) As used in this section:

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(1) "Surplus revenue" means the excess, if any, of the total	21
fund balance over the required year-end balance.	22

(2) "Total fund balance" means the sum of the unencumbered	23
balance in the general revenue fund on the last day of the	24
preceding fiscal year plus the balance in the budget stabilization	25
fund.	26

(3) "Required year-end balance" means the sum of the	27
following:	28

(a) Five per cent of the general revenue fund revenues for	29
the preceding fiscal year;	30

(b) "Ending fund balance," which means one-half of one per	31
cent of general revenue fund revenues for the preceding fiscal	32
year;	33

(c) "Carryover balance," which means, with respect to a	34
fiscal biennium, the excess, if any, of the estimated general	35
revenue fund appropriation and transfer requirement for the second	36
fiscal year of the biennium over the estimated general revenue	37
fund revenue for that fiscal year;	38

(d) "Capital appropriation reserve," which means the amount,	39
if any, of general revenue fund capital appropriations made for	40
the current biennium that the director of budget and management	41
has determined will be encumbered or disbursed;	42

(e) "Income tax reduction impact reserve," which means an	43
amount equal to the reduction projected by the director of budget	44
and management in income tax revenue in the current fiscal year	45
attributable to the previous reduction in the income tax rate made	46
by the tax commissioner pursuant to division (B) of section	47
5747.02 of the Revised Code.	48

(4) "Estimated general revenue fund appropriation and	49
transfer requirement" means the most recent adjusted	50
appropriations made by the general assembly from the general	51
revenue fund and includes both of the following:	52

(a) Appropriations made and transfers of appropriations from	53
the first fiscal year to the second fiscal year of the biennium in	54
provisions of acts of the general assembly signed by the governor	55
but not yet effective;	56

(b) Transfers of appropriations from the first fiscal year to	57
the second fiscal year of the biennium approved by the controlling	58
board.	59

(5) "Estimated general revenue fund revenue" means the most	60
recent such estimate available to the director of budget and	61
management.	62

(B)(1) Not later than the thirty-first day of July each year,	63
the director of budget and management shall determine the surplus	64
revenue that existed on the preceding thirtieth day of June and	65
transfer from the general revenue fund, to the extent of the	66
unobligated, unencumbered balance on the preceding thirtieth day	67
of June in excess of one-half of one per cent of the general	68
revenue fund revenues in the preceding fiscal year, the following:	69

(a) First, to the budget stabilization fund, any amount	70
necessary for the balance of the budget stabilization fund to	71
equal fiveten per cent of the general revenue fund revenues of	72
the preceding fiscal year;	73

(b) Then, to the income tax reduction fund, which is hereby	74
created in the state treasury, an amount equal to the surplus	75
revenue.	76

(2) Not later than the thirty-first day of July each year,	77
the director shall determine the percentage that the balance in	78
the income tax reduction fund is of the amount of revenue that the	79
director estimates will be received from the tax levied under	80
section 5747.02 of the Revised Code in the current fiscal year	81
without regard to any reduction under division (B) of that	82
section. If that percentage exceeds thirty-five one hundredths of	83
one per cent, the director shall certify the percentage to the tax	84
commissioner not later than the thirty-first day of July.	85

(C) The director of budget and management shall transfer	86
money in the income tax reduction fund to the general revenue	87
fund, the local government fund, and the public library fund as	88
necessary to offset revenue reductions resulting from the	89
reductions in taxes required under division (B) of section 5747.02	90
of the Revised Code in the respective amounts and percentages	91
prescribed by division (A) of section 5747.03 and divisions (B)	92
and (C) of section 131.51 of the Revised Code as if the amount	93
transferred had been collected as taxes under Chapter 5747. of the	94
Revised Code. If no reductions in taxes are made under that	95
division that affect revenue received in the current fiscal year,	96
the director shall not transfer money from the income tax	97
reduction fund to the general revenue fund, the local government	98
fund, and the public library fund.	99

Section 2. That existing sections 131.43 and 131.44 of the	100
Revised Code are hereby repealed.	101