SB 345 Summary

• Limits annual State General Fund appropriations beginning fiscal year 2020 to revenues collected in the preceding 12 months, excluding nonrecurring revenues, certified by the Director of Finance and Legislative Services Agency.

• Creates two new funds within the State Treasury: the General Fund Budget Reserve Fund (capped at 10% of prior year appropriations) and the General Fund Capital Fund, with interest retained in each fund.

• Transfers 75% of unexpended and reverted General Fund monies annually back to respective offices and 25% to the new reserve and capital funds, prioritizing the reserve fund until it reaches the 10% cap.

• Authorizes use of General Fund Budget Reserve Fund for natural disasters, emergencies without federal aid, revenue reductions, unexpected one-time expenses, and routine expenses during extenuating circumstances through supplemental appropriation bills.

• Authorizes General Fund Capital Fund for critical one-time capital improvements through supplemental appropriation bills, with preference for projects creating efficiencies and cost savings, and caps non-education designated revenues at fiscal year 2019 levels.