Bill Text: OH HB476 | 2011-2012 | 129th General Assembly | Introduced

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Bill Title: That is scheduled to take effect June 1, 2013, to continue the provisions of this act on and after that effective date.

Spectrum: Partisan Bill (Democrat 23-0)

Status: (Introduced - Dead) 2012-03-13 - To Finance & Appropriations [HB476 Detail]

Download: Ohio-2011-HB476-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 476

Representatives Ramos, Pillich 

Cosponsors: Representatives Murray, Hagan, R., Driehaus, Antonio, Boyd, Yuko, Reece, Phillips, Fende, Fedor, Lundy, Celeste, Winburn, Foley, Gerberry, Budish, Heard, Szollosi, Carney, Sykes, Slesnick 

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A BILL

To amend sections 131.43 and 131.44 and enact

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sections 131.441 and 131.442 of the Revised Code

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to create the Local Government Job Fund in the

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state treasury to provide funding to local

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governments for job creation, maintenance, and

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retention programs; to require the Director of

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Budget and Management, in any year that the state

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unemployment rate exceeds six percent, to transfer

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the amount, if any, that would be transferred to

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the Budget Stabilization Fund or the Income Tax

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Reduction Fund to the Local Government Job Fund;

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and to amend the version of section 131.44 of the

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Revised Code that is scheduled to take effect June

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1, 2013, to continue the provisions of this act on

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and after that effective date.

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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 be amended and	16
sections 131.441 and 131.442 of the Revised Code be enacted to	17
read as follows:	18

Sec. 131.43.  There is hereby created in the state treasury	19
the budget stabilization fund. ItIn years when the state	20
unemployment rate, as measured by the director of job and family	21
services, is less than six per cent, it is the intent of the	22
general assembly to maintain an amount of money in the budget	23
stabilization fund that amounts to approximately five per cent of	24
the general revenue fund revenues for the preceding fiscal year.	25
The governor shall include in the state budget hethe governor	26
submits to the general assembly under section 107.03 of the	27
Revised Code proposals for transfers between the general revenue	28
fund and the budget stabilization fund for the ensuing fiscal	29
biennium. The balance in the fund may be combined with the balance	30
in the general revenue fund for purposes of cash management.	31

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

32

(1) "Surplus revenue" means the excess, if any, of the total	33
fund balance over the required year-end balance.	34

(2) "Total fund balance" means the sum of the unencumbered	35
balance in the general revenue fund on the last day of the	36
preceding fiscal year plus the balance in the budget stabilization	37
fund.	38

(3) "Required year-end balance" means the sum of the	39
following:	40

(a) Five per cent of the general revenue fund revenues for	41
the preceding fiscal year;	42

(b) "Ending fund balance," which means one-half of one per	43
cent of general revenue fund revenues for the preceding fiscal	44
year;	45

(c) "Carryover balance," which means, with respect to a	46
fiscal biennium, the excess, if any, of the estimated general	47
revenue fund appropriation and transfer requirement for the second	48
fiscal year of the biennium over the estimated general revenue	49
fund revenue for that fiscal year;	50

(d) "Capital appropriation reserve," which means the amount,	51
if any, of general revenue fund capital appropriations made for	52
the current biennium that the director of budget and management	53
has determined will be encumbered or disbursed;	54

(e) "Income tax reduction impact reserve," which means an	55
amount equal to the reduction projected by the director of budget	56
and management in income tax revenue in the current fiscal year	57
attributable to the previous reduction in the income tax rate made	58
by the tax commissioner pursuant to division (B) of section	59
5747.02 of the Revised Code.	60

(4) "Estimated general revenue fund appropriation and	61
transfer requirement" means the most recent adjusted	62
appropriations made by the general assembly from the general	63
revenue fund and includes both of the following:	64

(a) Appropriations made and transfers of appropriations from	65
the first fiscal year to the second fiscal year of the biennium in	66
provisions of acts of the general assembly signed by the governor	67
but not yet effective;	68

(b) Transfers of appropriationappropriations from the first	69
fiscal year to the second fiscal year of the biennium approved by	70
the controlling board.	71

(5) "Estimated general revenue fund revenue" means the most	72
recent such estimate available to the director of budget and	73
management.	74

(B)(1) Not later than the thirty-first day of July each year,	75
the director of budget and management shall determine the surplus	76
revenue that existed on the preceding thirtieth day of June and	77
transfer from the general revenue fund, to the extent of the	78
unobligated, unencumbered balance on the preceding thirtieth day	79
of June in excess of one-half of one per cent of the general	80
revenue fund revenues in the preceding fiscal year, the following:	81

(a) In years when the state unemployment rate, using the most	82
recently calculated annual rate as measured by the director of job	83
and family services, is six per cent or greater, to the local	84
government job fund created in section 131.441 of the Revised Code	85
an amount equal to the surplus revenue.	86

(b) In years when division (B)(1)(a) of this section does not	87
apply, as follows:	88

(i) First, to the budget stabilization fund, any amount	89
necessary for the balance of the budget stabilization fund to	90
equal five per cent of the general revenue fund revenues of the	91
preceding fiscal year;	92

(b)(ii) Then, to the income tax reduction fund, which is	93
hereby created in the state treasury, an amount equal to the	94
surplus revenue.	95

(2) Not later than the thirty-first day of July each year,	96
the director shall determine the percentage that the balance in	97
the income tax reduction fund is of the amount of revenue that the	98
director estimates will be received from the tax levied under	99
section 5747.02 of the Revised Code in the current fiscal year	100
without regard to any reduction under division (B) of that	101
section. If that percentage exceeds thirty-five one hundredths of	102
one per cent, the director shall certify the percentage to the tax	103
commissioner not later than the thirty-first day of July.	104

(C) The director of budget and management shall transfer	105
money in the income tax reduction fund to the general revenue	106
fund, the local government fund, and the public library fund as	107
necessary to offset revenue reductions resulting from the	108
reductions in taxes required under division (B) of section 5747.02	109
of the Revised Code in the respective amounts and percentages	110
prescribed by division (A) of section 5747.03 and divisions (A)	111
and (B) of section 131.51 of the Revised Code as if the amount	112
transferred had been collected as taxes under Chapter 5747. of the	113
Revised Code. If no reductions in taxes are made under that	114
division that affect revenue received in the current fiscal year,	115
the director shall not transfer money from the income tax	116
reduction fund to the general revenue fund, the local government	117
fund, and the public library fund.	118

Sec. 131.441.  There is hereby created in the state treasury	119
the local government job fund. The fund shall consist of transfers	120
made to the fund under section 131.44 of the Revised Code.	121
Interest earned on money in the fund shall be credited to the	122
fund.	123

Money in the fund shall be used to fund job creation,	124
maintenance, and retention programs and for other purposes related	125
to increasing employment in the state.	126

Sec. 131.442.  Not later than thirty days after a transfer to	127
the local government job fund is made under section 131.44 of the	128
Revised Code, the director of budget and management shall transfer	129
the following:	130

(A) To the undivided local government fund of each county, an	131
amount from the local government job fund proportional to the	132
amount distributed to each county from the local government fund	133
under division (B) of section 5747.50 of the Revised Code;	134

(B) To the general fund of each municipal corporation that	135
receives money from the local government fund, an amount from the	136
local government job fund proportional to the amount distributed	137
to each municipal corporation from the local government fund under	138
division (C) of section 5747.50 of the Revised Code.	139

Section 2.  That existing sections 131.43 and 131.44 of the	140
Revised Code are hereby repealed.	141

Section 3.  That the version of section 131.44 of the Revised	142
Code that is scheduled to take effect on June 1, 2013, be amended	143
to read as follows:	144

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

145

(1) "Surplus revenue" means the excess, if any, of the total	146
fund balance over the required year-end balance.	147

(2) "Total fund balance" means the sum of the unencumbered	148
balance in the general revenue fund on the last day of the	149
preceding fiscal year plus the balance in the budget stabilization	150
fund.	151

(3) "Required year-end balance" means the sum of the	152
following:	153

(a) Five per cent of the general revenue fund revenues for	154
the preceding fiscal year;	155

(b) "Ending fund balance," which means one-half of one per	156
cent of general revenue fund revenues for the preceding fiscal	157
year;	158

(c) "Carryover balance," which means, with respect to a	159
fiscal biennium, the excess, if any, of the estimated general	160
revenue fund appropriation and transfer requirement for the second	161
fiscal year of the biennium over the estimated general revenue	162
fund revenue for that fiscal year;	163

(d) "Capital appropriation reserve," which means the amount,	164
if any, of general revenue fund capital appropriations made for	165
the current biennium that the director of budget and management	166
has determined will be encumbered or disbursed;	167

(e) "Income tax reduction impact reserve," which means an	168
amount equal to the reduction projected by the director of budget	169
and management in income tax revenue in the current fiscal year	170
attributable to the previous reduction in the income tax rate made	171
by the tax commissioner pursuant to division (B) of section	172
5747.02 of the Revised Code.	173

(4) "Estimated general revenue fund appropriation and	174
transfer requirement" means the most recent adjusted	175
appropriations made by the general assembly from the general	176
revenue fund and includes both of the following:	177

(a) Appropriations made and transfers of appropriations from	178
the first fiscal year to the second fiscal year of the biennium in	179
provisions of acts of the general assembly signed by the governor	180
but not yet effective;	181

(b) Transfers of appropriations from the first fiscal year to	182
the second fiscal year of the biennium approved by the controlling	183
board.	184

(5) "Estimated general revenue fund revenue" means the most	185
recent such estimate available to the director of budget and	186
management.	187

(B)(1) Not later than the thirty-first day of July each year,	188
the director of budget and management shall determine the surplus	189
revenue that existed on the preceding thirtieth day of June and	190
transfer from the general revenue fund, to the extent of the	191
unobligated, unencumbered balance on the preceding thirtieth day	192
of June in excess of one-half of one per cent of the general	193
revenue fund revenues in the preceding fiscal year, the following:	194

(a) In years when the state unemployment rate, using the most	195
recently calculated annual rate as measured by the director of job	196
and family services, is six per cent or greater, to the local	197
government job fund created in section 131.441 of the Revised Code	198
an amount equal to the surplus revenue.	199

(b) In years when division (B)(1)(a) of this section does not	200
apply, as follows:	201

(i) First, to the budget stabilization fund, any amount	202
necessary for the balance of the budget stabilization fund to	203
equal five per cent of the general revenue fund revenues of the	204
preceding fiscal year;	205

(b)(ii) Then, to the income tax reduction fund, which is	206
hereby created in the state treasury, an amount equal to the	207
surplus revenue.	208

(2) Not later than the thirty-first day of July each year,	209
the director shall determine the percentage that the balance in	210
the income tax reduction fund is of the amount of revenue that the	211
director estimates will be received from the tax levied under	212
section 5747.02 of the Revised Code in the current fiscal year	213
without regard to any reduction under division (B) of that	214
section. If that percentage exceeds thirty-five one hundredths of	215
one per cent, the director shall certify the percentage to the tax	216
commissioner not later than the thirty-first day of July.	217

(C) The director of budget and management shall transfer	218
money in the income tax reduction fund to the general revenue	219
fund, the local government fund, and the public library fund as	220
necessary to offset revenue reductions resulting from the	221
reductions in taxes required under division (B) of section 5747.02	222
of the Revised Code in the respective amounts and percentages	223
prescribed by division (A) of section 5747.03 and divisions (B)	224
and (C) of section 131.51 of the Revised Code as if the amount	225
transferred had been collected as taxes under Chapter 5747. of the	226
Revised Code. If no reductions in taxes are made under that	227
division that affect revenue received in the current fiscal year,	228
the director shall not transfer money from the income tax	229
reduction fund to the general revenue fund, the local government	230
fund, and the public library fund.	231

Section 4.  That the existing version of section 131.44 of	232
the Revised Code that is scheduled to take effect June 1, 2013, is	233
hereby repealed.	234

Section 5.  Sections 3 and 4 of this act shall take effect	235
June 1, 2013.	236