FISCAL NOTE

Senate Bill 331 as amended and reported by the Committee on Ways and Means Education amends the Education Trust Fund (ETF) Rolling Reserve Act of 2011 to: (1) codify current practices for the calculation of the annual ETF appropriation cap and the disposition of revenues in excess of the cap; and (2) modify certain dates regarding the transfer of funds between the ETF, Budget Stabilization Fund, and ETF Advancement and Technology Fund.

In addition, this bill creates the ETF Budget Reserve Fund to be funded, beginning on October 1, 2022, by excess revenues that are not transferred into the ETF Budget Stabilization Fund or the ETF Advancement and Technology Fund. The bill requires the Director of Finance to transfer 25% of the excess revenues from the previous fiscal year, by May 31 of each year, until the ETF Budget Reserve Fund balance equals $600 million; and any remaining excess revenues shall remain in the ETF as nonrecurring revenues.

This bill also provides that funds in the ETF Budget Reserve Fund may be appropriated, after the fund balance reaches $300 million, through an independent supplemental appropriation bill, enacted by at least two-thirds of the membership of each legislative chamber, to fund any of the following: (1) to offset a reduction in estimated revenues to the ETF for the current fiscal year; (2) to fund education employee or retiree pay raises or bonuses; (3) to provide funding for unanticipated obligations; or (4) to provide temporary tax relief.

This bill will not otherwise affect state or local funding.