HB 1454 Summary

• Removes the restriction limiting political subdivisions to transferring only 10% of annual budget to rainy day funds, allowing transfers of unused and unencumbered funds at any time.

• Permits transfer of unobligated cash balances from any fiscal year to rainy day funds if the transfer amount is specified in the establishing ordinance or resolution and does not exceed 10% of the annual budget.

• Allows rainy day funds to be financed from specified sources including unused and unencumbered funds under state tax code provisions, or any other funding source approved in the establishing ordinance or resolution.

• Rainy day funds remain subject to the same appropriation process as other tax-funded funds and cannot result in reduced tax levies for the political subdivision.

• Effective July 1, 2013.