The bill proposes the establishment of a Commonwealth Stabilization Fund, composed of undesignated fund balances from budgetary funds. It is essential that any transfers out of this fund can only occur through a roll call vote in both legislative branches. This requirement bolsters transparency and necessity in budget spending, ultimately encouraging the careful handling of state revenues and expenditure practices, which is crucial for long-term economic stability and growth.
Summary
House Bill 2936, presented by Representative John H. Rogers, focuses on the regulation of the Commonwealth’s fiscal policies, specifically concerning the Stabilization Fund. The bill mandates that the governor must submit a balanced budget to the General Court, ensuring that expenditures do not exceed expected revenue receipts. This is aimed at maintaining financial stability within the state by requiring proper fiscal oversight and accountability in the preparation of the state's budget.
Contention
Notably, the specific definitions within the bill related to a 'balanced budget' can lead to potential contention in legislative discussions. Critics may argue that such stringent requirements could limit the government's ability to respond flexibly to unexpected financial needs or emergencies. Moreover, the interpretation of what constitutes the 'consolidated net surplus' may lead to debates regarding the appropriate allocation and management of surplus funds, thereby stirring discussions among legislators on how to prioritize state funding across various sectors.
Provides relative to the disposition of certain state revenues through repeal of the Revenue Stabilization Trust Fund and dedication of certain revenues to the Budget Stabilization Fund. (EG SEE FISC NOTE GF RV See Note)