GREEN SHEET REDIGEST
HB 267 2020 Regular Session Gary Carter
FUNDS/FUNDING: (Constitutional Amendment) Allows for the use of the Budget
Stabilization Fund for state costs associated with a federally declared disaster
DIGEST
Present constitution establishes the Budget Stabilization Fund and provides for various
deposits into the fund including 25% of any nonrecurring revenues and mineral revenues
collected by the state over a base amount of $750 million. Further authorizes the legislature
to increase the base amount every 10 years by a law enacted by 2/3 of the elected members
of each house of the legislature. Increases provided for in law in 2004 and 2015 have
increased the base amount to $950 million.
Present constitution provides for the fund to be used only under the following conditions,
after consent of 2/3 of the elected members of each house of the legislature:
(1)If the official forecast of recurring money for the next fiscal year is less than the
official forecast of recurring money for the current fiscal year, the difference, not to
exceed 1/3 of the fund shall be incorporated into the next year's official forecast.
(2)If a deficit for the current fiscal year is projected due to a decrease in the official
forecast, an amount equal to 1/3 of the fund not to exceed the projected deficit may
be appropriated.
Proposed constitutional amendment provides for the use of the fund for the state costs
associated with a federally declared disaster, not to exceed an amount equal to 1/3 of the
fund, after consent of 2/3 of the elected members of each house of the legislature.
Present constitution provides for deposits into the fund including monies in excess of the
expenditure limit, mineral revenues, and nonrecurring revenues.
Proposed constitutional amendment retains the deposits into the fund in present constitution
and adds the deposit of an amount equivalent to the federal funds received by the state for
the reimbursement of disaster costs, not to exceed the amount of the costs appropriated out
of the fund.
Present constitution prohibits the amount included in the official forecast for the next fiscal
year and the amount appropriated for the current fiscal year from exceeding 1/3 of the fund
balance at the beginning of the current fiscal year. Proposed constitutional amendment
prohibits the combined amount of the fund incorporated in the official forecast in the next
fiscal year, in the current fiscal year, and as a result of a federally declared disaster, from
exceeding 1/3 of the balance at the beginning of the current fiscal year.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held November 3, 2020.
(Amends Const. Art. VII, §10.3(C)(3) and (4); Adds Const. Art. VII, §10.3(A)(5) and (C)(5))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the
engrossed bill
1. Technical amendment.
2. Clarifies that an amount equivalent to the money received by the state from
federal reimbursement shall be deposited in the Budget Stabilization Fund.
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Prepared by Martha Hess.