Bill Text: MS HB209 | 2019 | Regular Session | Introduced


Bill Title: State budget; proposed and actual shall not exceed average of revenues received during previous three fiscal years.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2019-02-05 - Died In Committee [HB209 Detail]

Download: Mississippi-2019-HB209-Introduced.html

MISSISSIPPI LEGISLATURE

2019 Regular Session

To: Appropriations

By: Representative Ladner

House Bill 209

AN ACT TO AMEND SECTIONS 27-103-125, 27-103-139 AND 27-103-211, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE TOTAL PROPOSED EXPENDITURES AND ACTUAL APPROPRIATIONS FROM THE STATE GENERAL FUND IN THE STATE BUDGET SHALL NOT EXCEED THE AMOUNT OF THE AVERAGE OF THE ACTUAL GENERAL FUND REVENUES RECEIVED DURING THE PREVIOUS THREE FISCAL YEARS; TO AMEND SECTION 27-103-213, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A PORTION OF THE UNENCUMBERED CASH BALANCE IN THE STATE GENERAL FUND AT THE CLOSE OF EACH FISCAL YEAR SHALL BE DISTRIBUTED TO THE MISSISSIPPI FUTURE BUDGET FUND; TO CREATE NEW SECTION 27-103-215, MISSISSIPPI CODE OF 1972, TO CREATE A SPECIAL FUND IN THE STATE TREASURY TO BE DESIGNATED THE MISSISSIPPI FUTURE BUDGET FUND; TO PROVIDE THAT MONEY IN THE FUND SHALL NOT BE APPROPRIATED BY THE LEGISLATURE FOR THE STATE BUDGET FOR THE CURRENT FISCAL YEAR OR THE UPCOMING FISCAL YEAR, BUT MAY BE APPROPRIATED DURING ANY LATER REGULAR LEGISLATIVE SESSION FOR THE STATE BUDGET FOR A LATER FISCAL YEAR; TO PROVIDE THAT MONEY IN THE FUND MAY BE USED TO PROVIDE FUNDS FOR THE DISASTER ASSISTANCE TRUST FUND WHEN THOSE FUNDS ARE IMMEDIATELY NEEDED TO PROVIDE FOR DISASTER ASSISTANCE; TO AMEND SECTION 33-15-307, MISSISSIPPI CODE OF 1972, TO PROVIDE THE PROCEDURE FOR REQUISITIONING AND TRANSFERRING FUNDS FROM THE MISSISSIPPI FUTURE BUDGET FUND TO THE DISASTER ASSISTANCE TRUST FUND; TO PROVIDE THAT NOT MORE THAN TWENTY PERCENT OF THE AMOUNT OF THE MONEY IN THE MISSISSIPPI FUTURE BUDGET FUND MAY BE TRANSFERRED TO THE DISASTER ASSISTANCE TRUST FUND DURING ANY FISCAL YEAR; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Section 27-103-125, Mississippi Code of 1972, is amended as follows:

     27-103-125.  The proposed budget of each state agency shall show the amounts required for operating expenses separately from the amounts required for permanent improvements.  The overall budget shall show, separately by each source, the estimated amount of general fund revenue and of special fund revenues of general fund agencies.  The total proposed expenditures in Part 1 of the overall budget shall not exceed the amount of * * *estimated revenues that will be available in the general and special funds for appropriation or use during the succeeding fiscal year, including any balances other than unencumbered balances in general funds that will be on hand in the general and special funds at the close of the then current fiscal year the average of the actual general and special fund revenues received during the previous three (3) fiscal years.  The total proposed expenditures from the State General Fund in Part 1 of the overall budget shall not exceed * * *ninety-eight percent (98%) of the amount of general fund revenue estimate for the succeeding fiscal year.  However, for fiscal years 2010, 2011, 2012, 2016 and 2017 only, the total proposed expenditures from the State General Fund in Part 1 of the overall budget shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for the succeeding fiscal year, and for fiscal year 2018, the total proposed expenditures from the State General Fund in Part 1 of the overall budget shall not exceed ninety-nine percent (99%) of the amount of general fund revenue estimate for the succeeding fiscal year.  The general fund revenue estimate shall be the estimate jointly adopted by the Governor and the Joint Legislative Budget Committee the amount of the average of the actual general fund revenues received during the previous three (3) fiscal years.  The Legislative Budget Office may recommend additional taxes or sources of revenue if in its judgment those additional funds are necessary to adequately support the functions of the state government.

     SECTION 2.  Section 27-103-139, Mississippi Code of 1972, is amended as follows:

     27-103-139.  On or before November 15 preceding each regular session of the Legislature, except the first regular session of a new term of office, the Governor shall submit to the members of the Legislature, the Legislative Budget Office or the members-elect, as the case may be, and to the executive head of each state agency a balanced budget for the succeeding fiscal year.  The budget submitted shall be prepared in a format that will include performance measurement data associated with the various programs operated by each agency.  The total proposed expenditures in the balanced budget shall not exceed the amount of * * *estimated revenues that will be available for appropriation or use during the succeeding fiscal year, including any balances other than unencumbered balances in general funds that will be on hand at the close of the then current fiscal year, as determined by the revenue estimate jointly adopted by the Governor and the Legislative Budget Committee the average of the actual general and special fund revenues received during the previous three (3) fiscal years.  The total proposed expenditures from the State General Fund in the balanced budget shall not exceed * * *ninety-eight percent (98%) of the amount of general fund revenue estimate for the succeeding fiscal year.  However, for fiscal years 2010, 2011, 2012, 2016 and 2017 only, the total proposed expenditures from the State General Fund in the balanced budget shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for the succeeding fiscal year, and for fiscal year 2018, the total proposed expenditures from the State General Fund in the balanced budget shall not exceed ninety-nine percent (99%) of the amount of general fund revenue estimate for the succeeding fiscal year.  The general fund revenue estimate shall be the estimate jointly adopted by the Governor and the Joint Legislative Budget Committee the amount of the average of the actual general fund revenues received during the previous three (3) fiscal years.

     The revenues used in preparing the balanced budget shall be only those revenues that will be available under the general laws of the state as they exist when the balanced budget is prepared, and shall not include any proposed revenues that would become available only after the enactment of new legislation.  If the Governor has any recommendations for additional proposed expenditures or proposed revenues that are not included in his balanced budget, he shall submit those recommendations in a supplement that is separate from his balanced budget, and whenever the Governor recommends any such additional proposed expenditures, he also shall recommend proposed revenues that are sufficient to fund the additional proposed expenditures, providing specific details regarding the sources and the total amount of those proposed revenues.

     The Governor may employ a budget officer for the purpose of receiving information from the State Fiscal Officer and preparing his recommendations on the budget.  If the Governor determines that information received from the State Fiscal Officer is not sufficient to enable him to prepare his budget recommendations, he may request an appropriation from the Legislature to provide additional staff within the Governor's office for that purpose.  At the first regular session after his election for Governor, the Governor shall submit any budget recommendations plus the required revenue source recommendations no later than January 31 of that year.

     SECTION 3.  Section 27-103-211, Mississippi Code of 1972, is amended as follows:

     27-103-211.  The total sum appropriated by the Legislature from the State General Fund for any fiscal year shall not exceed * * *ninety-eight percent (98%) of the general fund revenue estimate for that fiscal year developed by the Department of Revenue and the University Research Center and adopted by the Joint Legislative Budget Committee.  The unencumbered balances in general funds that will be available and on hand at the close of the fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund under Section 27-103-203.  However, for fiscal years 2010, 2011, 2012, 2015, 2016 and 2017 only, the total sum appropriated by the Legislature from the State General Fund shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for that fiscal year, and for fiscal year 2018, the total sum appropriated by the Legislature from the State General Fund shall not exceed ninety-nine percent (99%) of the amount of the general fund revenue estimate adopted by the Joint Legislative Budget Committee for that fiscal year the amount of the average of the actual general fund revenues received during the previous three (3) fiscal years.

     SECTION 4.  Section 27-103-213, Mississippi Code of 1972, is amended as follows:

     27-103-213.  (1)  The unencumbered cash balance in the General Fund in the State Treasury at the close of each fiscal year shall be distributed to * * *the Municipal Revolving Fund, the Working Cash-Stabilization Reserve Fund * * * and, the Capital Expense Fund and the Mississippi Future Budget Fund in the manner provided in this section * * *, except for fiscal year 2014 in which the unencumbered cash balance at the close of fiscal year 2014 shall be distributed as provided in subsection (4) of this section, and fiscal year 2016 in which the unencumbered cash balance at the close of fiscal year 2016 shall be distributed as provided in subsection (5) of this section.

     (2)  (a)  At the end of each fiscal year, the Executive Director of the Department of Finance and Administration and the State Treasurer shall determine the extent of the unencumbered cash balance existing in the General Fund in the State Treasury.

          (b)  As used in this section, the term "unencumbered cash balance" or "unencumbered General Fund cash balance" means the amount in the State General Fund after deducting all appropriations and other expenditures.  However, if the Legislature has authorized additional or deficit appropriations or transfers from the State General Fund for that fiscal year, those amounts shall be subtracted from the unencumbered cash balance in the General Fund before determining the amount available for distribution.  The unencumbered General Fund cash balance shall not be determined until after August 31 of each year, and it shall not be made until the State Treasurer has received a certificate in writing from the Executive Director of the Department of Finance and Administration, with notification to the Legislative Budget Office, showing the amount of the unencumbered General Fund cash balance.

     (3)  If any unencumbered General Fund cash balance is available for distribution under this section, the distribution of those funds shall be made by the Executive Director of the Department of Finance and Administration in the following order:

 * * *To the Municipal Revolving Fund, an amount equal to Seven Hundred Fifty Thousand Dollars ($750,000.00); however, if the amount of the unencumbered General Fund cash balance is less than Seven Hundred Fifty Thousand Dollars ($750,000.00), then the total amount of the unencumbered General Fund cash balance shall be distributed to the Municipal Revolving Fund.

          ( * * *ba)  To the Working Cash-Stabilization Reserve Fund, fifty percent (50%) of the amount of the unencumbered General Fund cash balance * * *after the distributions are made under paragraph (a), not to exceed ten percent (10%) of the General Fund appropriations for the fiscal year that the unencumbered General Fund cash balance represents.  For the purposes of this paragraph ( * * *ba), the appropriations for the fiscal year shall be the total amount contained in the actual appropriation bills passed by the Legislature.

          ( * * *cb)  To the Capital Expense Fund, * * *any remaining twenty-five percent (25%) of the amount of the unencumbered General Fund cash balance after the distributions are made under * * *paragraphs (a) and paragraph (b).

          (c)  To the Mississippi Future Budget Fund, any remaining amount of the unencumbered General Fund cash balance after the distributions are made under paragraphs (a) and (b).

 * * * (4)  For fiscal year 2014, if any unencumbered General Fund cash balance is available for distribution under this section at the close of the fiscal year, the distribution of those funds shall be made by the Executive Director of the Department of Finance and Administration in the following order:

  (a)  To the Municipal Revolving Fund, an amount equal to Seven Hundred Fifty Thousand Dollars ($750,000.00); however, if the amount of the unencumbered General Fund cash balance is less than Seven Hundred Fifty Thousand Dollars ($750,000.00), then the total amount of the unencumbered General Fund cash balance shall be distributed to the Municipal Revolving Fund.

  (b)  To the Working Cash-Stabilization Reserve Fund, the amount of the unencumbered General Fund cash balance not distributed under paragraph (a) until such time as the balance in the fund reaches Forty Million Dollars ($40,000,000.00).

  (c)  To the Working Cash-Stabilization Reserve Fund, Two Hundred Eighty-six Million Nine Hundred Fifty-nine Thousand Seven Hundred Ninety-eight Dollars ($286,959,798.00) of the amount of the unencumbered General Fund cash balance after the distributions are made under paragraphs (a) and (b); however, if the amount of the unencumbered General Fund cash balance is less than Two Hundred Eighty-six Million Nine Hundred Fifty-nine Thousand Seven Hundred Ninety-eight Dollars ($286,959,798.00), then the total amount of the unencumbered General Fund cash balance after the distributions are made under paragraphs (a) and (b) shall be distributed to the Working Cash-Stabilization Reserve Fund.  For the purposes of this paragraph (c), the appropriations for the fiscal year shall be the total amount contained in the actual appropriation bills passed by the Legislature.

  (d)  To the Capital Expense Fund, any remaining amount of the unencumbered General Fund cash balance after the distributions are made under paragraphs (a), (b) and (c).

(5)  For fiscal year 2016, if any unencumbered General Fund cash balance is available for distribution under this section at the close of the fiscal year, the distribution of those funds shall be made by the Executive Director of the Department of Finance and Administration in the following order:

  (a)  To the Municipal Revolving Fund, an amount equal to Seven Hundred Fifty Thousand Dollars ($750,000.00); however, if the amount of the unencumbered General Fund cash balance is less than Seven Hundred Fifty Thousand Dollars ($750,000.00), then the total amount of the unencumbered General Fund cash balance shall be distributed to the Municipal Revolving Fund.

  (b)  To the Capital Expense Fund, any remaining amount of the unencumbered General Fund cash balance after the distributions are made under paragraph (a).

     SECTION 5.  The following shall be codified as Section 27-103-215, Mississippi Code of 1972:

     27-103-215.  (1)  There is created in the State Treasury a special fund, separate and apart from any other fund, to be designated the Mississippi Future Budget Fund.

     (2)  The fund shall consist of the amounts distributed to the fund under Section 27-103-213 and any other funds made available by the Legislature for deposit into the fund.  Money remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned from the investment of monies in the fund shall be deposited to the credit of the fund.  (3)  Money in the fund shall be expended upon appropriation by the Legislature for any authorized purpose.  However, the Legislature shall not be authorized to appropriate any money in the fund during a legislative session for the state budget for the current fiscal year or the upcoming fiscal year, but the money may be appropriated during any later regular legislative session for the state budget for a later fiscal year.

     (4)  The Mississippi Future Budget Fund may be used to provide funds for the Disaster Assistance Trust Fund when those funds are immediately needed to provide for disaster assistance under Sections 33-15-301 through 33-15-317.  Any transfer of funds from the Mississippi Future Budget Fund to the Disaster Assistance Trust Fund shall be made in accordance with the provisions of subsection (6) of Section 33-15-307.

     SECTION 6.  Section 33-15-307, Mississippi Code of 1972, is amended as follows:

     33-15-307.  (1)  The provisions of this article shall be invoked only pursuant to a state of emergency declared by the Governor or an emergency or major disaster declared by the President, or pursuant to an executive order of the Governor, or administrative order of the director, in order to provide state or local government resources and personnel in compliance with the provisions of the Emergency Management Assistance Compact, Section 45-18-1 et seq., or in nondeclared times for administrative and training costs associated with state disaster response and recovery programs.  Each declaration shall cite the cause for the declaration and define the area eligible for assistance and the type of assistance to be provided.

     (2)  The Disaster Assistance Trust Fund is created as a special fund in the State Treasury into which shall be paid any funds appropriated or otherwise made available by the Legislature  for disaster assistance, any funds transferred from the Working Cash-Stabilization Reserve Fund as provided under subsection (5) of this section, any income from investment of the funds in the trust fund, and federal reimbursement for administrative costs for management of the Individuals and Households Program (IHP), the Public Assistance Program, the Hazard Mitigation Program and Disaster Reservist Program.

     (3)  Income from investment of the funds in the trust fund, and all other funds deposited therein pursuant to law, shall be available for expenditure, transfer and allocation pursuant to this article.

     (4)  The Disaster Assistance Trust Fund shall be used only for the following purposes:

          (a)  The state's portion of the cost share for public assistance under a major disaster declaration.

          (b)  The state's cost share of the Individuals and Households Program (IHP) pursuant to Section 33-15-209(1) under a major disaster declared by the President.

          (c)  Administrative costs for managing the IHP * * *Program.

          (d)  Administrative costs for managing the Public Assistance Program.

          (e)  The State Temporary Housing Program pursuant to Section 33-15-217 under a state of emergency declared by the Governor.

          (f)  Out-of-pocket expenses, including travel, per diem, overtime and other similar expenses, of state or local agencies when so tasked by the Governor or the director for emergency response under the provisions of Section 33-15-11(b)(7) and current executive orders.  This includes actual emergency response and recovery activities, and applies to mobilization and deployment of personnel from state or local agencies to another state under the provisions of the Emergency Management Assistance Compact.  At the discretion of the director, this may include reimbursement of costs to local governments for overtime and backfill of deployed personnel within the state under the provisions of Section 33-15-15(a) and to jurisdictions who are signatories of the Statewide Mutual Aid Compact (SMAC).

          (g)  Costs incurred as a result of state active duty for the Mississippi National Guard when so tasked by the Governor to provide support to other agencies and local governments in a major disaster or emergency situation, or when tasked by the Governor to provide support to another state under the provisions of the Emergency Management Assistance Compact.

          (h)  The state's portion of the cost share for hazard mitigation under a major disaster declaration.

          (i)  Administrative costs of the Hazard Mitigation Program.

          (j)  Costs incurred as a result of the implementation of the Disaster Reservist Program under a major disaster declaration.

          (k)  Administrative costs of the Disaster Reservist Program.

          (l)  Costs incurred as a result of the implementation of public assistance, and/or individual assistance, and/or Disaster Reservist Program, and/or hazard mitigation, and/or temporary housing under a Governor's state of emergency.

          (m)  The state's portion of the cost share for public assistance under a major disaster declaration for tornado or other storm damage to public facilities and infrastructure occurring on November 10, 2002, as provided in Sections 1 through 16 of Chapter 3, Third Extraordinary Session 2002.

          (n)  Actual costs, including personnel call-back wages, base and overtime wages, travel, per diem and other out-of-pocket expenses incurred by regional response teams as a result of being mobilized or deployed when so tasked by the Governor pursuant to Section 33-15-11(b)(7), or by the director for emergency response pursuant to Section 33-15-15(a).

          (o)  The state's portion of the cost share for public assistance under the Presidential Declaration of Major Disaster for the State of Mississippi (FEMA-1604-DR) dated August 29, 2005, for hurricane or other storm damage to public facilities and infrastructure as a result of Hurricane Katrina, as provided in Section 3 of Chapter 538, Laws of 2006.

     (5)  Whenever the director determines that funds are immediately needed in the Disaster Assistance Trust Fund to provide for disaster assistance under this article, he shall notify the Executive Director of the Department of Finance and Administration of his determination and shall requisition the amount of funds from the Working Cash-Stabilization Fund that are needed in the trust fund, which shall be subject to the limitations set forth below in this subsection.  At the same time he makes the requisition, the director shall notify the Lieutenant Governor, the Speaker of the House of Representatives and the respective Chairmen of the Senate Appropriations Committee, the Senate Finance Committee, the House Appropriations Committee and the House Ways and Means Committee of his determination of the need for the funds and the amount that he has requisitioned.  Upon receipt of such a requisition from the director, the Executive Director of the Department of Finance and Administration shall ascertain if the amount requisitioned is available in the Working Cash-Stabilization Reserve Fund and is within the limitations set forth below in this subsection and, if it is, he shall transfer that amount from the Working Cash-Stabilization Reserve Fund to the trust fund.  If the amount requisitioned is more than the amount available in the Working Cash-Stabilization Fund or above the limitations set forth below in this subsection, the executive director shall transfer the amount that is available within the limitations.  The maximum amount that may be transferred from the Working Cash-Stabilization Reserve Fund to the trust fund for any one (1) disaster occurrence shall be Five Hundred Thousand Dollars ($500,000.00) and the maximum amount that may be transferred during any fiscal year shall be One Million Dollars ($1,000,000.00).

     (6)  In addition to the funds provided under subsection (5) of this section, whenever the director determines that funds are immediately needed in the Disaster Assistance Trust Fund to provide for disaster assistance under this article, he shall notify the Executive Director of the Department of Finance and Administration of his determination and shall requisition the amount of funds from the Mississippi Future Budget Fund that are needed in the trust fund, which shall be subject to the limitations set forth below in this subsection.  At the same time he makes the requisition, the director shall notify the Lieutenant Governor, the Speaker of the House of Representatives and the respective Chairmen of the Senate Appropriations Committee, the Senate Finance Committee, the House Appropriations Committee and the House Ways and Means Committee of his determination of the need for the funds and the amount that he has requisitioned.  Upon receipt of such a requisition from the director, the Executive Director of the Department of Finance and Administration shall ascertain if the amount requisitioned is available in the Mississippi Future Budget Fund and is within the limitations set forth below in this subsection and, if it is, he shall transfer that amount from the Mississippi Future Budget Fund to the trust fund.  If the amount requisitioned is above the limitations set forth below in this subsection, the executive director shall transfer the amount that is available within the limitations.  The maximum amount that may be transferred from the Mississippi Future Budget Fund to the trust fund for disaster occurrence during any fiscal year shall be twenty percent (20%) of the amount of the money in the fund.

     ( * * *67)  Unexpended state funds in the Disaster Assistance Trust Fund at the end of a fiscal year shall not lapse into the State General Fund but shall remain in the trust fund for use under this article for as long as the funds are needed for the particular purpose for which they were appropriated, deposited or transferred into the trust fund.  After any state funds in the trust fund are no longer needed for the particular purpose for which they were appropriated, deposited or transferred into the trust fund, the director may use those funds for any other purpose under this article for which they currently are needed and for which other funds are not available.  If there is no current need for such funds for any purpose under this article, the funds and the income earned from the investment of the funds shall be transferred back to the particular fund or funds in the State Treasury from which they were appropriated or transferred into the trust fund, upon certification of the director to the Executive Director of the Department of Finance and Administration that the funds are not currently needed; however, if such funds are derived from the proceeds of general obligation bonds issued by the state under Section 3 of Chapter 538, Laws of 2006, such excess funds and the income earned from such funds shall be utilized to pay the debt service on such bonds.

     SECTION 7.  This act shall take effect and be in force from and after July 1, 2019.


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