HB5402 Summary

• Amends the State Finance Act to limit transfers among line item appropriations to State agencies from the same treasury fund to 1% of aggregate amounts appropriated starting in State fiscal year 2025.

• Prohibits transfer of moneys appropriated to State agencies from grants, reimbursements, or matching funds received from outside parties (including federal government) to different line items or agencies beginning in fiscal year 2025.

• Provides special temporary provisions allowing higher transfer limits: 4% for fiscal year 2023 and 8% for fiscal year 2024 for operational or lump sum expenses only.

• Establishes specific transfer authority for certain agencies (Department of Children and Family Services, Department on Aging, Department of Healthcare and Family Services, State Board of Education, and Department of Central Management Services) with defined percentage limits and eligible line items.

• Requires Governor certification and 30-day advance notice to General Assembly for long-term care rebalancing transfers, limited to 4% of amounts appropriated for institutional services redirected to community-based programs.