Connecticut House Bill HB05105

Connecticut 2010 Regular Session

• Introduced: 2/10/10
• Refer: 2/10/10

Caption

An Act Concerning Transfers Of General Fund Surplus To The Budget Reserve Fund.

Impact

The implementation of HB 05105 is likely to have a substantial impact on state laws governing budgetary and financial policies. By amending section 4-30a of the general statutes, the bill seeks to create a more resilient financial structure that can withstand economic fluctuations. The requirement for automatic transfers of surpluses above the designated threshold will ensure that the state maintains a healthier reserve, potentially reducing the need for drastic budget cuts or tax increases during periods of economic downturn.

Summary

House Bill 05105 proposes significant changes to the management of the state's General Fund surplus by increasing the maximum permissible balance of the Budget Reserve Fund from ten percent to fifteen percent of the current fiscal year net appropriations. This legislative measure is primarily aimed at enhancing the fiscal stability of the state and ensuring that any excess General Fund surplus is strategically allocated to bolster the Budget Reserve Fund. As part of this bill, the State Treasurer would be required to transfer any projected surplus exceeding one percent of net appropriations into the Budget Reserve Fund during the fiscal year, enforcing a proactive approach to fiscal management.

Contention

While the bill is backed by proponents who argue it will secure the state's financial future and prevent overspending, there may be concerns among certain legislators about the implications of restricting access to surplus funds. Opponents could argue that the automatic transfer requirement might limit flexibility in allocating surplus funds for immediate needs or programs. The debate over HB 05105 is expected to center on the balance between prudent fiscal policy and the necessity for adaptable budgeting in response to fluctuating economic conditions.