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Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
February 19, 2004
Introduced by Reps. Harrell, W.D. Smith, Wilkins, Altman, Bingham, Ceips, Chellis, Clark, Cotty, Davenport, Edge, Frye, Gilham, Hagood, Hamilton, Harrison, Haskins, Hinson, Huggins, Koon, Leach, Limehouse, Littlejohn, Mahaffey, Martin, Merrill, E.H. Pitts, Quinn, Rice, Richardson, Simrill, D.C. Smith, G.M. Smith, G.R. Smith, J.R. Smith, Stewart, Stille, Taylor, Toole, Townsend, Tripp, Umphlett, Vaughn, Walker, White, Witherspoon, Young, Sandifer, Kirsh and Owens
S. Printed 2/19/04--H.
Read the first time January 13, 2004.
To whom was referred a Bill (H. 4475) to enact the Fiscal Discipline Plan of 2004 by designating Section 6 of Act 356 of 2002, relating to actions necessary for the State Budget and Control Board to cover an operating, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, in SECTION 3(A), page 2, line 26, by striking /general fund revenue equal/ and inserting /General Reserve Fund revenue up/ so that when amended SECTION 3(A) reads:
/ (A) Before the close of the state's books for fiscal year 2003-2004, the State Treasurer shall transfer an amount of fiscal year 2003-2004 General Reserve Fund revenue up to fifty million dollars to repay general depository accounts used to offset the fiscal year 2001-2002 operating deficit. /
Renumber sections to conform.
Amend title to conform.
ROBERT W. HARRELL, JR. for Committee.
EXPLANATION OF IMPACT:
Section 3 (A) requires the State Treasurer to transfer up to $50 million of FY 2003-04 General Revenue Fund revenue to repay the general depository accounts used to offset the FY 2001-02 operating deficit. The General Reserve Fund balance is currently $49,299,599.
Office of State Budget
TO ENACT THE FISCAL DISCIPLINE PLAN OF 2004 BY DESIGNATING SECTION 6 OF ACT 356 OF 2002, RELATING TO ACTIONS NECESSARY FOR THE STATE BUDGET AND CONTROL BOARD TO COVER AN OPERATING DEFICIT, AS SECTION 11-11-180, CODE OF LAWS OF SOUTH CAROLINA, 1976, AND AMENDING IT TO REQUIRE AN OPERATING DEFICIT TO BE PLACED FIRST ON THE AGENDA OF THE STATE BUDGET AND CONTROL BOARD AT THE FIRST BOARD MEETING FOLLOWING THE COMPTROLLER GENERAL'S REPORT OF THE DEFICIT TO THE BOARD, BY PROVIDING FOR THE REPAYMENT OF THE ACCUMULATED STATE OPERATING DEFICIT AND LIMITING GENERAL FUND APPROPRIATIONS GROWTH TO THREE PERCENT IN FISCAL YEARS 2003-2004 THROUGH 2008-2009 AND PROVIDING FOR THE USE OF SURPLUS REVENUES, AND TO PROVIDE THAT DURING THE SAME PERIOD ANNUALLY REQUIRED TRANSFERS TO THE GENERAL RESERVE FUND MUST BE CONSIDERED RECURRING GENERAL FUND APPROPRIATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act may be cited as the Fiscal Discipline Plan of 2004.
SECTION 2. Section 6, Act 356 of 2002, is designated as Section 11-11-180 of the 1976 Code and is amended to read:
SECTION 6. Section 11-11-180. (A) Upon the close of a fiscal year on June 30, the Comptroller General shall account for general fund revenues and expenditures from a budgetary-based approach no later than August 31 succeeding the end of the fiscal year. If expenditures exceed revenues and an operating deficit is determined, this information must be reported to the State Budget and Control Board, and the matter of the operating deficit must be placed as the first item on the agenda of the first meeting of the State Budget and Control Board following the Comptroller General's closing of the books for the fiscal year.
(B) Notwithstanding any other provision of law, upon a determination by the Comptroller General
that, at the close of a fiscal year , that funds will be are needed to balance the budgetary general fund after the use of the General Reserve Fund as provided in Section 11-11-310(B) of the 1976 Code, the State Budget and Control Board is authorized to borrow the amount needed to balance the budgetary general fund by borrowing from any department of state government any surplus which may be on hand in the Office of the State Treasurer to the credit of any such department. Upon approval by the board of a repayment schedule, the State Treasurer is authorized to transfer to the board from the general fund the amount necessary to repay the loan with interest no later than June 30 of the following fiscal year. This provision takes effect upon signature of the Governor."
SECTION 3. (A) Before the close of the state's books for fiscal year 2003-2004, the State Treasurer shall transfer an amount of fiscal year 2003-2004 general fund revenue equal to fifty million dollars to repay general depository accounts used to offset the fiscal year 2001-2002 operating deficit.
(B) To the extent revenues in the Capital Reserve Fund for fiscal years 2004-2005 and 2005-2006 are available for appropriation by the General Assembly, as provided in Article III, Section 36(B)(2) of the Constitution of this State and Section 11-11-320 of the 1976 Code, it is the intent of the General Assembly to make additional repayments of any remaining accumulated operating deficit for fiscal year 2001-2002 in an amount not to exceed fifty million dollars a year, if so much is necessary, as the first order of priority in the appropriation of Capital Reserve Fund revenues for fiscal years 2004-2005 and 2005-2006.
SECTION 4. (A) In addition to all other applicable limitations on general fund appropriations and notwithstanding any other provisions of law, for fiscal years 2004-2005 through 2008-2009, total general fund appropriations for the fiscal year may not exceed such appropriations for the preceding fiscal year by more than three percent. The Office of State Budget shall certify to the Governor and the chairmen respectively of the House Ways and Means Committee and Senate Finance Committee the total general fund appropriations allowed for a fiscal year pursuant to this section. In calculating the limitation, there must be removed from general fund appropriations for the preceding year any amounts determined by the Office of the State Budget to be nonrecurring. Before the Governor may submit the proposed budget for these fiscal years, the proposal must include the certificate of the Director of the Office of State Budget that the proposed budget conforms to the limitation imposed by this section. The annual general appropriations bill may not be given third reading in the House of Representatives and Senate unless a similar certificate is received by the presiding officer in each house from the Director of the Office of State Budget before the bill is given third reading.
(B) Notwithstanding any other provisions of law providing for the uses of surplus general fund revenues, after the close of books for fiscal years 2003-2004 through 2008-2009, to the extent any fiscal year 2001-2002 accumulated operating deficit remains:
(1) the State Treasurer first shall transfer to the appropriate depository accounts as much of the surplus as is necessary to eliminate the deficit;
(2) should any surplus remain after item (1) is accomplished, the remaining surplus must be applied to restore any amounts previously withdrawn from the general reserve fund and not previously restored; and
(3) should any surplus remain after items (1) and (2) are accomplished, the balance is deemed Capital Reserve Fund revenues and must be appropriated in the manner and used for the purposes provided by law for the Capital Reserve Fund.
SECTION 5. For fiscal years 2004-2005 through 2008-2009, amounts required to be transferred to the General Reserve Fund established pursuant to Article III, Section 34(A) of the Constitution of this State and Section 11-11-310 of the 1976 Code, including amounts necessary to restore previously withdrawn amounts, are deemed to be recurring general fund appropriations except that this budgetary treatment of these transfers does not affect the calculations of any spending formulas based on a percentage of general fund revenues.
SECTION 6. This act takes effect upon approval by the Governor.
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