SB 449 Summary

• Redefines county rainy day fund as a cash account for unforeseen circumstances or loss in revenue, funded from excess revenue collections from the previous fiscal year with a dedicated line item in the budget.

• Increases allowable rainy day fund usage for general budget supplementation from one-eighth (1/8) to one-quarter (1/4) of the fund balance when the county's current general budget is less than the previous year's budget.

• Replaces revenue shortage provisions with authorization to expend up to ten percent (10%) of rainy day fund balance by board resolution for exigent circumstances.

• Clarifies capital reserve fund can be funded from non-general budget sources and requires dedicated line items when funded from the general budget.

• Becomes effective July 1, 2025, with an emergency clause allowing it to take effect upon passage and approval.