32 V.S.A. § 308 — General Fund Budget Stabilization Reserve; creation and purpose

(a) It is the purpose of this section to reduce the effects of annual variations in State
revenues upon the General Fund budget of the State by reserving certain surpluses
in General Fund revenues that may accrue for the purpose of offsetting deficits or
reducing General Fund bonds.
(b) There is hereby created a General Fund Budget Stabilization Reserve determined on
a budgetary basis and administered by the Commissioner of Finance and Management.
Any budgetary basis undesignated General Fund surplus occurring at the close of a
fiscal year shall be reserved within the General Fund Budget Stabilization Reserve,
provided that the balance reserved shall not exceed five percent of the appropriations
from the General Fund for the prior fiscal year, and any additional amounts as may
be authorized by the General Assembly. Any undesignated General Fund surplus remaining
after the General Fund Budget Stabilization Reserve has been brought to the maximum
authorized level shall remain in the General Fund. When the General Assembly next
meets, it may specifically appropriate the use of the undesignated General Fund surplus
for the reduction of General Fund bonds authorized but yet to be issued by the Treasurer,
a reduction of revenues, or for other needs as the General Assembly may determine.
(c) In any fiscal year, if the General Fund is found to have an undesignated fund deficit,
the General Fund Budget Stabilization Reserve shall be used by the Commissioner of
Finance and Management to the extent necessary to offset the undesignated fund deficit
as determined by Generally Accepted Accounting Principles.
(d) Determination of the amount of the undesignated General Fund surplus or fund deficit
in any fiscal year for the purposes of this section shall be made by the Commissioner
of Finance and Management. Adjustments shall be made to the amounts authorized in
subsections (b) and (c) of this section upon receipt of the final audited annual report
of the Commissioner of Finance and Management. (