75-6706. Budget stabilization fund; credits; expenditures; legislative budget committee study.
(a) On July 1, 2017, the budget stabilization fund is hereby established in the state treasury.
(b) On or before the 10th day of each month commencing July 1, 2017, the director of accounts and reports shall transfer from the state general fund to the budget stabilization fund interest earnings based on:
(1) The average daily balance of moneys in the budget stabilization fund, for the preceding month; and
(2) the net earnings rate of the pooled money investment portfolio for the preceding month.
(c) On and after July 1, 2017, no moneys in the budget stabilization fund shall be expended pursuant to this subsection unless the expenditure either has been approved by an appropriation or other act of the legislature or has been approved by the state finance council acting on this matter which is hereby characterized as a matter of legislative delegation and subject to the guidelines prescribed in K.S.A. 75-3711(c), and amendments thereto.
(d) (1) The legislative budget committee shall study and review the policy concerning the balance of, transfers to and expenditures from the budget stabilization fund. The legislative budget committee study and review shall include, but not be limited to, the following:
(A) Risk-based budget stabilization fund practices utilized in other states.
(B) The appropriate number of years to review the state general fund:
(i) Revenue variances from projections; and
(ii) expenditure variances from budgets.
(C) The entity to certify the amount necessary in the budget stabilization fund to maintain the appropriate risk-based balance.
(D) Plan to fund the budget stabilization fund.
(E) Process and circumstances to reach the appropriate risk-based balance, including the amount of risk that is acceptable.
(F) Circumstances under which expenditures may be made from the fund.
(2) The legislative budget committee may make recommendations and introduce legislation as it deems necessary to implement such recommendations.
(e) On or before August 15, 2021, the director of the budget, in consultation with the director of legislative research, shall certify the amount of the unencumbered ending balance in the state general fund for fiscal year 2021. Such ending balance shall not include the transfers made pursuant to K.S.A. 75-6707, and amendments thereto. Upon making such certification, the director of the budget shall authorize the director of accounts and reports to transfer 10% of such ending balance from the state general fund to the budget stabilization fund.
History: L. 2016, ch. 106, § 2; L. 2017, ch. 54, § 47; L. 2018, ch. 109, § 126; May 31.