8.55 - IOWA ECONOMIC EMERGENCY FUND.
8.55 IOWA ECONOMIC EMERGENCY FUND.
1. The Iowa economic emergency fund is created. The fund shall
be separate from the general fund of the state and the balance in the
fund shall not be considered part of the balance of the general fund
of the state. The moneys credited to the fund are not subject to
section 8.33 and shall not be transferred, used, obligated,
appropriated, or otherwise encumbered except as provided in this
section.
2. a. The maximum balance of the fund is the amount equal to
two and one-half percent of the adjusted revenue estimate for the
fiscal year. If the amount of moneys in the Iowa economic emergency
fund is equal to the maximum balance, moneys in excess of this amount
shall be transferred to the general fund.
b. Notwithstanding paragraph "a", any moneys in excess of
the maximum balance in the economic emergency fund after the
distribution of the surplus in the general fund of the state at the
conclusion of each fiscal year shall not be transferred to the
general fund of the state but shall be transferred to the senior
living trust fund. The total amount appropriated, reverted, or
transferred, in the aggregate, under this paragraph, section 8.57,
subsection 2, and any other law providing for an appropriation or
reversion or transfer of an appropriation to the credit of the senior
living trust fund, for all fiscal years beginning on or after July 1,
2004, shall not exceed the amount specified in section 8.57,
subsection 2, paragraph "c".
3. a. Except as provided in paragraphs "b" and "c",
the moneys in the Iowa economic emergency fund shall only be used
pursuant to an appropriation made by the general assembly. An
appropriation shall only be made for the fiscal year in which the
appropriation is made. The moneys shall only be appropriated by the
general assembly for emergency expenditures.
b. Moneys in the fund may be used for cash flow purposes
during a fiscal year provided that any moneys so allocated are
returned to the fund by the end of that fiscal year.
c. There is appropriated from the Iowa economic emergency
fund to the general fund of the state for the fiscal year in which
moneys in the fund were used for cash flow purposes, for the purposes
of reducing or preventing any overdraft on or deficit in the general
fund of the state, the amount from the Iowa economic emergency fund
that was used for cash flow purposes pursuant to paragraph "b"
and that was not returned to the Iowa economic emergency fund by June
30 of the fiscal year. The appropriation in this paragraph shall not
exceed fifty million dollars and is contingent upon all of the
following having occurred:
(1) The revenue estimating conference estimate of general fund
receipts made during the last quarter of the fiscal year was or the
actual fiscal year receipts and accruals were at least one-half of
one percent less than the comparable estimate made during the third
quarter of the fiscal year.
(2) The governor has implemented the uniform reductions in
appropriations required in section 8.31 as a result of subparagraph
(1) and such reduction was insufficient to prevent an overdraft on or
deficit in the general fund of the state or the governor did not
implement uniform reductions in appropriations because of the
lateness of the estimated or actual receipts and accruals under
subparagraph (1).
(3) The balance of the general fund of the state at the end of
the fiscal year prior to the appropriation made in this paragraph was
negative.
(4) The governor has issued an official proclamation and has
notified the co-chairpersons of the fiscal committee of the
legislative council and the legislative services agency that the
contingencies in subparagraphs (1) through (3) have occurred and the
reasons why the uniform reductions specified in subparagraph (2) were
insufficient or were not implemented to prevent an overdraft on or
deficit in the general fund of the state.
d. If an appropriation is made pursuant to paragraph "c"
for a fiscal year, there is appropriated from the general fund of the
state to the Iowa economic emergency fund for the following fiscal
year, the amount of the appropriation made pursuant to paragraph
"c".
e. Except as provided in section 8.58, the Iowa economic
emergency fund shall be considered a special account for the purposes
of section 8.53 in determining the cash position of the general fund
of the state for the payment of state obligations.
4. Notwithstanding section 12C.7, subsection 2, interest or
earnings on moneys deposited in the Iowa economic emergency fund
shall be credited to the rebuild Iowa infrastructure fund. Section History: Recent Form
84 Acts, ch 1305, § 21; 92 Acts, ch 1227, § 5; 94 Acts, ch 1181,
§8; 95 Acts, ch 214, § 13; 2001 Acts, 2nd Ex, ch 6, §27, 28, 37; 2002
Acts, ch 1169, §1; 2002 Acts, ch 1175, §73; 2002 Acts, 2nd Ex, ch
1001, §25, 26, 33, 52; 2003 Acts, ch 35, §45, 49; 2003 Acts, ch 179,
§29, 30, 40; 2004 Acts, ch 1175, §216; 2005 Acts, ch 179, §24, 25;
2006 Acts, ch 1173, §1, 3
Referred to in § 8.54, 8.57, 8.58 Footnotes
For future repeal of subsection 2, paragraph b, see §8.57,
subsection 2, paragraph d