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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
budget stabilization fund; deposits
Purpose
Increases the statutory cap on the Budget Stabilization Fund (BSF).
Background
The BSF consists of monies transferred from the state General Fund and is administered by the State Treasurer. The BSF is designed to set revenue aside during times of economic growth to utilize during times of below-trend growth. At the end of a fiscal year, the BSF balance is prohibited from exceeding 7 percent of the state General Fund revenue for that fiscal year. Any monies that exceed the 7 percent threshold are required to be transferred by the State Treasurer to the state General Fund (A.R.S. § 35-144). The estimated FY 2019 BSF ending balance, assuming the Legislature continues to notwithstand the statutory formula, is $439,986,000 which is 4.1 percent of revenues (JLBC FY 2020 Baseline).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Increases the percentage cap for the BSF from 7 percent to 10 percent.
2. Makes technical changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
January 25, 2019
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