ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

 

HB 2610: budget stabilization fund; cap; repeal

Sponsor: Representative Parker B, LD 10

Committee on Appropriations

Overview

Repeals the limit on the fiscal year-end balance of the Budget Stabilization Fund (BSF).

History

The BSF, also known as the "Rainy Day Fund," was established in 1990 along with a formula to determine state General Fund (GF) deposits and withdrawals based on economic growth. Transfers from the BSF may not exceed the amount required to balance the GF budget. However, if the balance of the BSF exceeds 10% of annual GF revenues at the end of a fiscal year, the surplus is automatically deposited back into the GF (A.R.S. § 35-144).

Laws 2019, Ch. 54 increased the statutory cap on the BSF from 7% to 10% of annual GF revenues, beginning in FY 2020. For both FY 2023 and FY 2024, budget reconciliation legislation has used notwithstanding session law language to waive the 10% cap (Laws 2022, Ch. 308 § 7; Laws 2023, Ch. 145 § 2). The FY 2025 Baseline continues this budget reconciliation provision.

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRepeals the requirement that the BSF cannot exceed 10% of GF revenues. (Sec. 1)

2.   Removes the automatic transfer of excess monies in the BSF to the GF. (Sec. 1)

3.   Makes conforming changes. (Sec. 1)

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7.                     HB 2610

8.   Initials AF           Page 0 Appropriations

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