HB 1161 Summary

• Replaces the term "allotments" with "budget reductions" throughout state budget control statutes to clarify the director of the budget's authority to control spending rates.

• Requires the office of management and budget to order budget reductions under section 54-44.1-12 prior to approval of additional cash flow financing if a revenue shortfall exceeds five percent.

• Maintains provisions allowing the first 2.5% of general fund budget reductions to be offset by transfers from the foundation aid stabilization fund, with additional reductions available after budget stabilization fund transfers are exhausted.

• Preserves the budget section of legislative management's authority to object to budget reductions or expenditures determined to be contrary to legislative intent, with burden of proof on budget units in judicial review.

• Requires state agencies receiving special fund appropriations to report how they would reduce special fund spending by the same percentage as any general fund budget reduction, due within 60 days of the reduction.