| 1 | A bill to be entitled |
| 2 | An act relating to the Florida Savings Fund; amending s. |
| 3 | 215.32, F.S.; establishing the Florida Savings Fund; |
| 4 | conforming provisions; specifying that the fund balance is |
| 5 | part of the working capital balance of the state; |
| 6 | providing for the calculation of the required fund |
| 7 | balance; providing for transfer of funds from the General |
| 8 | Revenue Fund to the Florida Savings Fund; requiring that |
| 9 | interest earned by the Florida Savings Fund be deposited |
| 10 | in the General Revenue Fund; providing for the use of |
| 11 | funds in the Florida Savings Fund; amending s. 216.221, |
| 12 | F.S.; specifying conditions for determining when a deficit |
| 13 | in the General Revenue Fund is deemed to occur for |
| 14 | purposes of adjusting appropriations to prevent such a |
| 15 | deficit; authorizing the Chief Financial Officer to |
| 16 | transfer funds from the Florida Savings Fund to the |
| 17 | General Revenue Fund under certain circumstances; |
| 18 | conforming cross-references; amending s. 216.222, F.S.; |
| 19 | revising the conditions for determining when a deficit in |
| 20 | the General Revenue Fund is deemed to occur for purposes |
| 21 | of transferring funds from the Budget Stabilization Fund |
| 22 | to offset such a deficit; amending s. 252.37, F.S.; |
| 23 | authorizing funds in the Florida Savings Fund to be |
| 24 | transferred and expended under certain emergency |
| 25 | conditions; providing an effective date. |
| 26 |
|
| 27 | Be It Enacted by the Legislature of the State of Florida: |
| 28 |
|
| 29 | Section 1. Subsection (1) and paragraph (a) of subsection |
| 30 | (2) of section 215.32, Florida Statutes, are amended, and |
| 31 | paragraph (d) is added to subsection (2) of that section, to |
| 32 | read: |
| 33 | 215.32 State funds; segregation.- |
| 34 | (1) All moneys received by the state shall be deposited in |
| 35 | the State Treasury unless specifically provided otherwise by law |
| 36 | and shall be deposited in and accounted for by the Chief |
| 37 | Financial Officer within the following funds, which funds are |
| 38 | hereby created and established: |
| 39 | (a) General Revenue Fund. |
| 40 | (b) Trust funds. |
| 41 | (c) Budget Stabilization Fund. |
| 42 | (d) Florida Savings Fund. |
| 43 | (2) The source and use of each of these funds shall be as |
| 44 | follows: |
| 45 | (a) The General Revenue Fund shall consist of all moneys |
| 46 | received by the state from every source whatsoever, except as |
| 47 | provided in paragraphs (b), and (c), and (d). Such moneys shall |
| 48 | be expended pursuant to General Revenue Fund appropriations |
| 49 | acts, transferred as provided in paragraph (c) or paragraph (d), |
| 50 | or maintained as unallocated general revenue. Unallocated |
| 51 | general revenue shall be considered the working capital balance |
| 52 | of the state and shall consist of moneys in the General Revenue |
| 53 | Fund that are in excess of the amount needed to meet General |
| 54 | Revenue Fund appropriations for the current fiscal year and the |
| 55 | balance of the Florida Savings Fund. |
| 56 | (d)1. The Florida Savings Fund shall consist of amounts |
| 57 | equal to the difference between 5 percent of the official |
| 58 | estimate of total funds available for appropriation from the |
| 59 | General Revenue Fund for a fiscal year and the balance of the |
| 60 | Lawton Chiles Endowment Fund, which shall be calculated |
| 61 | according to the following formula: |
| 62 |
|
| 63 | FSF = (0.05 x AGR) - LCE |
| 64 |
|
| 65 | Where: |
| 66 | FSF = the required balance of the Florida Savings Fund |
| 67 | established pursuant to this subparagraph. |
| 68 | AGR = the official estimate of total funds available for |
| 69 | appropriation from the General Revenue Fund according |
| 70 | to the most recent financial outlook statement adopted |
| 71 | by the Revenue Estimating Conference before the |
| 72 | Legislature's enactment of the General Appropriations |
| 73 | Act. |
| 74 | LCE = the balance of the Lawton Chiles Endowment Fund as of |
| 75 | the date that the Revenue Estimating Conference |
| 76 | certifies the required balance of the Florida Savings |
| 77 | Fund pursuant to subparagraph 2. |
| 78 |
|
| 79 | 2. Before the effective date of the General Appropriations |
| 80 | Act for a fiscal year, the Revenue Estimating Conference shall |
| 81 | certify the required balance of the Florida Savings Fund for |
| 82 | that fiscal year, calculated as provided in subparagraph 1., and |
| 83 | the amount needed for transfer to the fund for its balance to |
| 84 | equal the required balance. |
| 85 | 3. The Chief Financial Officer, once each calendar |
| 86 | quarter, shall transfer from the General Revenue Fund to the |
| 87 | Florida Savings Fund an amount equal to 25 percent of the amount |
| 88 | certified by the Revenue Estimating Conference as needed for |
| 89 | transfer to the Florida Savings Fund pursuant to subparagraph 2. |
| 90 | 4. Interest earned by the Florida Savings Fund shall be |
| 91 | deposited in the General Revenue Fund. |
| 92 | 5. Funds in the Florida Savings Fund may only be expended |
| 93 | or transferred as authorized in s. 216.221 and this section. |
| 94 | Except as provided in this section, an appropriation or transfer |
| 95 | may not be made from the Florida Savings Fund for any other |
| 96 | purpose. |
| 97 | a. Funds in the Florida Savings Fund may be expended |
| 98 | pursuant to s. 252.37 for an emergency as defined in s. 252.34 |
| 99 | declared by the Governor under s. 252.36 or declared by law. |
| 100 | b. Funds in the Florida Savings Fund may be transferred to |
| 101 | the General Revenue Fund pursuant to s. 215.18. |
| 102 | Section 2. Section 216.221, Florida Statutes, is amended |
| 103 | to read: |
| 104 | 216.221 Appropriations as maximum appropriations; |
| 105 | adjustment of budgets to avoid or eliminate deficits.- |
| 106 | (1) All appropriations shall be maximum appropriations, |
| 107 | based upon the collection of sufficient revenues to meet and |
| 108 | provide for such appropriations. It is the duty of the Governor, |
| 109 | as chief budget officer, to ensure that revenues collected will |
| 110 | be sufficient to meet the appropriations and that no deficit |
| 111 | occurs in any state fund. |
| 112 | (2) For purposes of this section, a deficit in the General |
| 113 | Revenue Fund is deemed to occur when the official estimate of |
| 114 | funds available in the General Revenue Fund, combined with the |
| 115 | funds available in the Florida Savings Fund, for a fiscal year |
| 116 | falls below the total amount appropriated from the General |
| 117 | Revenue Fund for that fiscal year. |
| 118 | (3)(2) The Legislature may annually provide direction in |
| 119 | the General Appropriations Act regarding use of any state funds |
| 120 | to offset General Revenue Fund deficits. |
| 121 | (4) If the Chief Financial Officer determines, in |
| 122 | consultation with the Revenue Estimating Conference, that the |
| 123 | total funds available in the General Revenue Fund for a fiscal |
| 124 | year fall below the total amount appropriated from the General |
| 125 | Revenue Fund for that fiscal year, the Chief Financial Officer |
| 126 | shall transfer an amount necessary to cover the shortfall from |
| 127 | the Florida Savings Fund to the General Revenue Fund. |
| 128 | (5)(3) For purposes of preventing a deficit in the General |
| 129 | Revenue Fund, all branches and agencies of government shall |
| 130 | participate in deficit reduction efforts. Absent specific |
| 131 | legislative direction, when budget reductions are required in |
| 132 | order to prevent a deficit under the provisions of subsection |
| 133 | (9) (7), each branch shall reduce its General Revenue Fund |
| 134 | appropriations by a proportional amount. |
| 135 | (6)(4) For purposes of preventing a deficit in the General |
| 136 | Revenue Fund, appropriations to the legislative branch that are |
| 137 | voluntarily placed in their reserve by the President of the |
| 138 | Senate or the Speaker of the House of Representatives, or by |
| 139 | both, may not be reduced, but may be included in any deficit |
| 140 | reduction plan. |
| 141 | (7)(5)(a) If, in the opinion of the Governor, after |
| 142 | consultation with the Revenue Estimating Conference, a deficit |
| 143 | will occur in the General Revenue Fund, he or she shall so |
| 144 | certify to the commission and to the Chief Justice of the |
| 145 | Supreme Court. No more than 30 days after certifying that a |
| 146 | deficit will occur in the General Revenue Fund, the Governor |
| 147 | shall develop for the executive branch, and the Chief Justice of |
| 148 | the Supreme Court shall develop for the judicial branch, and |
| 149 | provide to the commission and to the Legislature plans of action |
| 150 | to eliminate the deficit. |
| 151 | (b) If, in the opinion of the President of the Senate and |
| 152 | the Speaker of the House of Representatives, after consultation |
| 153 | with the Revenue Estimating Conference, a deficit will occur in |
| 154 | the General Revenue Fund and the Governor has not certified the |
| 155 | deficit, the President of the Senate and the Speaker of the |
| 156 | House of Representatives shall so certify. Within 30 days after |
| 157 | such certification, the Governor shall develop for the executive |
| 158 | branch and the Chief Justice of the Supreme Court shall develop |
| 159 | for the judicial branch and provide to the commission and to the |
| 160 | Legislature plans of action to eliminate the deficit. |
| 161 | (c) In developing a plan of action to prevent deficits in |
| 162 | accordance with subsection (9) (7), the Governor and Chief |
| 163 | Justice shall, to the extent possible, preserve legislative |
| 164 | policy and intent, and, absent any specific direction to the |
| 165 | contrary in the General Appropriations Act, the Governor and |
| 166 | Chief Justice shall comply with the following guidelines for |
| 167 | reductions in the approved operating budgets of the executive |
| 168 | branch and the judicial branch: |
| 169 | 1. Education budgets should not be reduced more than |
| 170 | provided for in s. 215.16(2). |
| 171 | 2. The use of nonrecurring funds to solve recurring |
| 172 | deficits should be minimized. |
| 173 | 3. Newly created programs that are not fully implemented |
| 174 | and programs with critical audits, evaluations, and reviews |
| 175 | should receive first consideration for reductions. |
| 176 | 4. No agencies or branches of government receiving |
| 177 | appropriations should be exempt from reductions. |
| 178 | 5. When reductions in positions are required, the focus |
| 179 | should be initially on vacant positions. |
| 180 | 6. Reductions that would cause substantial losses of |
| 181 | federal funds should be minimized. |
| 182 | 7. Reductions to statewide programs should occur only |
| 183 | after review of programs that provide only local benefits. |
| 184 | 8. Reductions in administrative and support functions |
| 185 | should be considered before reductions in direct-support |
| 186 | services. |
| 187 | 9. Maximum reductions should be considered in budgets for |
| 188 | expenses including travel and in budgets for equipment |
| 189 | replacement, outside consultants, and contracts. |
| 190 | 10. Reductions in salaries for elected state officials |
| 191 | should be considered. |
| 192 | 11. Reductions that adversely affect the public health, |
| 193 | safety, and welfare should be minimized. |
| 194 | 12. The Budget Stabilization Fund should not be reduced to |
| 195 | a level that would impair the financial stability of this state. |
| 196 | 13. Reductions in programs that are traditionally funded |
| 197 | by the private sector and that may be assumed by private |
| 198 | enterprise should be considered. |
| 199 | 14. Reductions in programs that are duplicated among state |
| 200 | agencies or branches of government should be considered. |
| 201 | (8)(6) If the Revenue Estimating Conference projects a |
| 202 | deficit in the General Revenue Fund in excess of 1.5 percent of |
| 203 | the moneys appropriated from the General Revenue Fund during a |
| 204 | fiscal year or when the cumulative total of a series of |
| 205 | projected deficits in the General Revenue Fund exceeds 1.5 |
| 206 | percent of the moneys appropriated from the General Revenue |
| 207 | Fund, the deficit shall be resolved by the Legislature. |
| 208 | (9)(7) Deficits in the General Revenue Fund that do not |
| 209 | meet the amounts specified by subsection (8) (6) shall be |
| 210 | resolved by the Governor for the executive branch and the Chief |
| 211 | Justice of the Supreme Court for the judicial branch. The |
| 212 | Governor and Chief Justice shall implement any directions |
| 213 | provided in the General Appropriations Act related to |
| 214 | eliminating deficits and to reducing agency and judicial branch |
| 215 | budgets, including the use of those legislative appropriations |
| 216 | voluntarily placed in reserve. In addition, the Governor and |
| 217 | Chief Justice shall implement any directions in the General |
| 218 | Appropriations Act relating to the resolution of deficit |
| 219 | situations. When reducing state agency or judicial branch |
| 220 | budgets, the Governor or the Chief Justice, respectively, shall |
| 221 | use the guidelines prescribed in subsection (7) (5). The |
| 222 | Executive Office of the Governor, and the Chief Justice for the |
| 223 | judicial branch, shall implement the deficit reduction plans |
| 224 | through amendments to the approved operating budgets in |
| 225 | accordance with s. 216.181. |
| 226 | (10)(8) The Chief Financial Officer also has the duty to |
| 227 | ensure that revenues being collected will be sufficient to meet |
| 228 | the appropriations and that no deficit occurs in any fund of the |
| 229 | state. |
| 230 | (11)(9) If, in the opinion of the Chief Financial Officer, |
| 231 | after consultation with the Revenue Estimating Conference, a |
| 232 | deficit will occur, he or she shall report his or her opinion to |
| 233 | the Governor, the President of the Senate, and the Speaker of |
| 234 | the House of Representatives in writing. In the event the |
| 235 | Governor does not certify a deficit, or the President of the |
| 236 | Senate and the Speaker of the House of Representatives do not |
| 237 | certify a deficit within 10 days after the Chief Financial |
| 238 | Officer's report, the Chief Financial Officer shall report his |
| 239 | or her findings and opinion to the commission and the Chief |
| 240 | Justice of the Supreme Court. |
| 241 | (12)(10) When advised by the Revenue Estimating |
| 242 | Conference, the Chief Financial Officer, or any agency |
| 243 | responsible for a trust fund that a deficit will occur with |
| 244 | respect to the appropriations from a specific trust fund in the |
| 245 | current fiscal year, the Governor for the executive branch, or |
| 246 | the Chief Justice for the judicial branch, shall develop a plan |
| 247 | of action to eliminate the deficit. Before implementing the plan |
| 248 | of action, the Governor or the Chief Justice must comply with |
| 249 | the provisions of s. 216.177(2), and actions to resolve deficits |
| 250 | in excess of $1 million must be approved by the Legislative |
| 251 | Budget Commission. In developing the plan of action, the |
| 252 | Governor or the Chief Justice shall, to the extent possible, |
| 253 | preserve legislative policy and intent. |
| 254 | (13)(11) Once a deficit is determined to have occurred and |
| 255 | action is taken to reduce approved operating budgets and release |
| 256 | authority, no action may be taken to restore the reductions, |
| 257 | either directly or indirectly. |
| 258 | Section 3. Paragraph (a) of subsection (1) of section |
| 259 | 216.222, Florida Statutes, is amended to read: |
| 260 | 216.222 Budget Stabilization Fund; criteria for |
| 261 | withdrawing moneys.- |
| 262 | (1) Moneys in the Budget Stabilization Fund may be |
| 263 | transferred to the General Revenue Fund for: |
| 264 | (a)1. Offsetting a deficit in the General Revenue Fund. A |
| 265 | deficit is deemed to occur when the official estimate of funds |
| 266 | available in the General Revenue Fund, combined with funds |
| 267 | available in the Florida Savings Fund, for a fiscal year falls |
| 268 | below the total amount appropriated from the General Revenue |
| 269 | Fund for that fiscal year. Such a transfer must be made pursuant |
| 270 | to s. 216.221, or pursuant to an appropriation by law. |
| 271 | 2. Notwithstanding the requirements of s. 216.221, if, |
| 272 | after consultation with the Revenue Estimating Conference, the |
| 273 | Chief Financial Officer believes that a deficit will occur in |
| 274 | the General Revenue Fund and if: |
| 275 | a. Fewer than 30 but more than 4 days are left in the |
| 276 | fiscal year, the Legislature is not in session, and neither the |
| 277 | Legislature nor the Legislative Budget Commission is scheduled |
| 278 | to meet before the end of the fiscal year, or |
| 279 | b. Fewer than 5 days are left in the fiscal year and the |
| 280 | Governor and the Chief Justice, the Legislature, or the |
| 281 | Legislative Budget Commission have not implemented measures to |
| 282 | resolve the deficit, |
| 283 |
|
| 284 | the Chief Financial Officer shall certify the deficit to the |
| 285 | Governor, the Chief Justice, the President of the Senate, and |
| 286 | the Speaker of the House of Representatives, and may thereafter |
| 287 | withdraw funds from the Budget Stabilization Fund to offset the |
| 288 | projected deficit in the General Revenue Fund. The Chief |
| 289 | Financial Officer shall consult with the Governor and the chair |
| 290 | and vice chair of the Legislative Budget Commission before any |
| 291 | funds may be withdrawn from the Budget Stabilization Fund. At |
| 292 | the beginning of the next fiscal year, the Chief Financial |
| 293 | Officer shall promptly determine the General Revenue Fund |
| 294 | balance to be carried forward. The Chief Financial Officer shall |
| 295 | immediately repay the Budget Stabilization Fund for the |
| 296 | withdrawn amount, up to the amount of the balance. If the |
| 297 | General Revenue Fund balance carried forward is not sufficient |
| 298 | to fully repay the Budget Stabilization Fund, the repayment of |
| 299 | the remainder of the withdrawn funds shall be as provided in s. |
| 300 | 215.32(2)(c)3. |
| 301 | Section 4. Subsection (2) of section 252.37, Florida |
| 302 | Statutes, is amended to read: |
| 303 | 252.37 Financing.- |
| 304 | (2) It is the legislative intent that the first recourse |
| 305 | be made to funds regularly appropriated to state and local |
| 306 | agencies. If the Governor finds that the demands placed upon |
| 307 | these funds in coping with a particular disaster declared by the |
| 308 | Governor as a state of emergency are unreasonably great, she or |
| 309 | he may make funds available by transferring and expending moneys |
| 310 | appropriated for other purposes, by transferring and expending |
| 311 | moneys out of any unappropriated surplus funds, or from the |
| 312 | Budget Stabilization Fund or the Florida Savings Fund. Following |
| 313 | the expiration or termination of the state of emergency, the |
| 314 | Governor may transfer moneys with a budget amendment, subject to |
| 315 | approval by the Legislative Budget Commission, to satisfy the |
| 316 | budget authority granted for such emergency. |
| 317 | Section 5. This act shall take effect upon becoming a law. |