SB375 Summary

• Establishes procedures for transferring funds to the Restricted Reserve Fund from various sources including unobligated balances in the Rainy Day Fund, General Improvement Fund, Development and Enhancement Fund, and General Revenue Allotment Reserve Fund as of specified dates in 2021-2022.

• Creates $171,405,000 in designated set-asides within the Restricted Reserve Fund for specific purposes: $133.5 million for Executive/Legislative uses (requires 3/5 vote), $3 million for State Police Vehicles (requires 3/5 vote), $15 million for unallocated reserves (requires majority vote), $5.8 million for economic stimulus, Quick Action Closing Fund incentives, and $14.105 million for Department of Correction debt service (last three do not require approval).

• Transfers $10,000,000 to the Rainy Day Fund and directs all remaining unobligated funds to the Long Term Reserve Fund, with unspent set-aside amounts automatically transferring to Long Term Reserve Fund on July 1, 2023.

• Repeals the existing Rainy Day Fund statute effective December 31, 2022, transferring any remaining balances to the Long Term Reserve Fund.

• Amends the Restricted Reserve Fund approval process to require Legislative Council or Joint Budget Committee approval for transfers and includes an emergency clause for immediate effectiveness.