§ 35-3-20 - State budget reserve and cash stabilization account.
SECTION 35-3-20
§ 35-3-20 State budget reserve and cashstabilization account. – (a) There is hereby created within the general fund a state budget reserve andcash stabilization account, which shall be administered by the state controllerand which shall be used solely for the purpose of providing such sums as may beappropriated to fund any unanticipated general revenue deficit caused by ageneral revenue shortfall.
(b) In carrying out the provisions of § 35-3-20.1, thestate controller shall, based on that fiscal years estimate, transfer theamounts needed to fund cash requirements during the fiscal year; the transfershall be adjusted at the end of the fiscal year in order to conform to therequirements of § 35-3-20.1. To the extent that funds so transferred arenot needed by the Rhode Island Capital Plan fund the funds may be loaned backto the general fund.
(c) For the fiscal year ending June 30, 2009, whenever theaggregate of the monies and securities held for the credit of the state budgetreserve and cash stabilization account exceeds three and four tenths of onepercent (3.4%) of total fiscal year resources, consisting of the aggregate of(1) actual revenues from taxes and other departmental general revenue sources;and (2) the general revenue balance available for appropriations at thebeginning of the fiscal year; the excess shall be transferred to the RhodeIsland Capital Plan fund, to be used solely for capital projects. Providedfurther, the applicable percentage shall increase by four-tenths of one percent(.4%) for the succeeding four (4) fiscal years as follows:
Fiscal year ending June 30, 2010 3.8%
Fiscal year ending June 30, 2011 4.2%
Fiscal year ending June 30, 2012 4.6%
Fiscal years ending June 30, 2013 and thereafter 5.0%
(d) At any time after the third quarter of a fiscal year,that it is indicated that total resources which are defined to be the aggregateof estimated general revenue, general revenue receivables, and available freesurplus in the general fund will be less than the estimates upon which currentappropriations were based, the general assembly may make appropriations fromthe state budget reserve and cash stabilization account for the differencebetween the estimated total resources and the original estimates upon whichenacted appropriations were based, but only in the amount of the differencebased upon the revenues projected at latest state revenue estimating conferencepursuant to chapter 16 of title 35 as reported by the chairperson of thatconference.
(e) Whenever a transfer has been made pursuant to subsection(d), that transfer shall be considered as estimated general revenues for thepurposes of determining the amount to be transferred to the Rhode IslandCapital Plan fund for the purposes of subsection 35-3-20.1(b).
(f) Whenever a transfer has been made pursuant to subsection(d), the amount of the transfer shall be transferred to the Rhode IslandCapital Plan fund from funds payable into the general revenue fund pursuant to§ 35-3-20.1 in the fiscal year following the fiscal year in which thetransfer was made.