HCS HB 1906 -- STATE FUNDS

SPONSOR:  Hollingsworth (Green, 73)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Fiscal
Review and Government Reform by a vote of 8 to 0.

This substitute requires that beginning Fiscal Year 2004, the
House Budget Committee and the Senate Appropriations Committee
review the cash balances in all state funds.  The committees are
to ensure that, where appropriate, balances in dedicated funds
are utilized prior to additional general revenue appropriations.

The following funds are exempt from review:

(1)  Constitutional funds;

(2)  Statutory funds approved by the voters of the state;

(3)  Funds that are deemed federal;

(4)  Funds created by law specifically for the purpose of
receiving donations and bequests;

(5)  Missouri Arts Council Trust Fund;

(6)  Funds that if transferred would violate the terms of an
existing trust;

(7)  Funds created by law specifically for professional
registration purposes;

(8)  Public Service Commission; and

(9)  Petroleum Storage Tank Fund.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Net Savings to General Revenue Fund of $0
in FY 2003, Unknown in FY 2004, and Unknown in FY 2005.
Estimated Net Cost to Various Dedicated State Funds of $0 in FY
2003, Unknown in FY 2004, and Unknown in FY 2005.

PROPONENTS:  Supporters say that the bill allows the Office of
Administration to sweep unencumbered fund balances, places a
surcharge on those funds for the cost of administration, and
eliminates a 1983 statute.  The fund sweep would be an important
component of a challenging budget.

Testifying for the bill were Representative Green (73); Quentin
Wilson, Cabinet Director for the Governor; and Jacqueline White,
Commissioner of Administration.

OPPONENTS:  Those who oppose the bill say that moneys in the
funds are dedicated to specific purposes and therefore are
obligated even if unused.  The Missouri Constitution delegates
the power of appropriation to the General Assembly.  Therefore, a
sweep conducted by the Office of Administration would be
unconstitutional.

Testifying against the bill were Missouri Petroleum Marketers
Association; Missouri Telecommunications Industry Association;
Missouri Industrial Energy Consumers; and Missouri Association of
Realtors.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:02 am