General Fund and Transportation Fund Balance Reserves

# (a)

There is hereby created within the General Fund a General Fund Balance Reserve, also known as the “Rainy Day Reserve.” After satisfying the requirements of section 308 of this title, and after other reserve requirements have been met, any remaining unreserved and undesignated end of fiscal year General Fund surplus shall be reserved in the General Fund Balance Reserve. The General Fund Balance Reserve shall not exceed 10 percent of the appropriations from the General Fund for the prior fiscal year without legislative authorization.
(1), (2) [Repealed.]

(3) Of the funds that would otherwise be reserved in the General Fund Balance Reserve under this subsection, the following amounts shall be reserved as necessary and transferred from the General Fund as follows:

# (A)

25 percent to the Vermont State Retirement Fund established by 3 V.S.A. § 473; and

# (B)

25 percent to the Postretirement Adjustment Allowance Account established in 16 V.S.A. § 1949a.

# (b)

# (1)

The General Assembly may unreserve and appropriate or transfer an amount not to exceed 10 percent of the General Fund Balance Reserve to fund unforeseen or emergency needs.
It is the intent of the General Assembly that any General Fund Balance Reserve funds utilized in accordance with this section be replenished.

# (2)

If the official State revenue estimates of the Emergency Board for the General Fund, determined under section 305a of this title, have been reduced by two percent or more from the estimates determined and assumed for purposes of the appropriations act or budget adjustment act, funds in the General Fund Balance Reserve may be unreserved and appropriated or transferred by the General Assembly to compensate for a reduction of revenues.

# (c)

There is hereby created within the Transportation Fund a Transportation Fund Balance Reserve. After satisfying the requirements of section 308a of this title, and after other reserve requirements have been met, any remaining unreserved and undesignated end of fiscal year Transportation Fund surplus shall be reserved in the Transportation Fund Balance Reserve. Monies from this Reserve shall be available for appropriation by the General Assembly.

# (d)

Determination of the amounts of the General Fund and Transportation Fund Balance Reserves shall be made by the Commissioner of Finance and Management and reported, along with the amounts appropriated pursuant to subsection (a) of this section, to the legislative Joint Fiscal Committee at its first meeting following September 1 of each year. (