SB 2773 — State budget; provide for transfer of funds.

SB2773 (As SentPassed tothe Governor)Senate) - 2018 Regular Session MISSISSIPPI LEGISLATURE Regular Session To:

Senator(s) Clarke Senate Bill 2773 (As SentPassed tothe Governor)Senate) AN ACT TORELATING PROVIDE FOR CERTAIN TRANSFERS TO THE CAPITALSTATE EXPENSEBUDGET FUNDAND DURINGTRANSFERS FISCALOF YEARFUNDS; 2018;

TO TRANSFERBRING BUDGETFORWARD CONTINGENCYSECTIONS FUNDS27-103-125, 27-103-139, 27-103-203, 27-103-211, 27-103-213, 41-113-11, 43-13-407 AND 65-37-13, MISSISSIPPI CODE OF 1972, RELATING TO THE CLEVELANDSTATE CLINIC;GENERAL FUND AND OTHER FUNDS;

TO TRANSFERPROVIDE CAPITALFOR EXPENSECERTAIN FUNDSTRANSFERS TOIN THEFISCAL GREENVILLEYEAR AIRPORT,2018 AIR SERVICE DEVELOPMENT ACT AND THEFISCAL DEPARTMENTYEAR OF2019; REVENUE;

TO REPEAL SECTION 22, CHAPTER 99, LAWS OF 2017, WHICH PROVIDES FOR THE FUNDING OF A CERTAIN NUMBER OF HOME- AND COMMUNITY-BASED WAIVER SLOTS BY THE STATE DEPARTMENT OF MENTAL HEALTH;

TO AMEND SECTION 37, CHAPTER 102, LAWS OF 2017, TO INCREASE THE MAXIMUM AMOUNT OF GENERAL FUNDS APPROPRIATED TO THE STATE DEPARTMENT OF EDUCATION THAT SHALL BE USED FOR THE SCHOOL RECOGNITION PROGRAM;

TO AMEND SECTION 37, CHAPTER 102, LAWS OF 2017, TO INCREASE THE NUMBER OF PERMANENT TIME-LIMITED POSITIONS FOR THE STATE DEPARTMENT OF EDUCATION THAT SHALL BE USED FOR VOCATIONAL TECHNICAL EDUCATION;

TO AMEND SECTION 13, CHAPTER 64, LAWS OF 2017, WHICH AUTHORIZES THE COMMISSIONER OF THE DEPARTMENT OF CORRECTIONS TO TRANSFER SPENDING AUTHORITY BETWEEN AND WITHIN BUDGETS, TO DELETE THE PROHIBITION ON TRANSFERS THAT INCREASE THE MAJOR OBJECT OF EXPENDITURE FOR SALARIES;

TO AMEND SECTION 3, CHAPTER 1, LAWS OF 2017, WHICH TRANSFERS CERTAIN AMOUNTS IN THE FISCAL YEAR 2018 APPROPRIATION TO THE DEPARTMENT OF PUBLIC SAFETY AMONG VARIOUS CATEGORIES;

     SECTION 1.1.  Section 27-103-125, Mississippi Code of 1972, is brought forward as follows:

 During     Fiscal27-103-125.  YearThe 2018,proposed budget of each state agency shall show the amounts required for operating expenses separately from the amounts required for permanent improvements.  The overall budget shall show, separately by each source, the estimated amount of general fund revenue and of special fund revenues of general fund agencies.  The total proposed expenditures in Part 1 of the overall budget shall not exceed the amount of estimated revenues that will be available in the general and special funds for appropriation or use during the succeeding fiscal year, including any balances other than unencumbered balances in general funds that will be on hand in the general and special funds at the close of the then current fiscal year.  The total proposed expenditures from the State FiscalGeneral OfficerFund in Part 1 of the overall budget shall transfernot toexceed ninety-eight percent (98%) of the Capitalamount Expenseof general fund revenue estimate for the succeeding fiscal year.  However, for fiscal years 2010, 2011, 2012, 2016 and 2017 only, the total proposed expenditures from the State General Fund outin Part 1 of the followingoverall enumeratedbudget funds,shall not exceed one hundred percent (100%) of the amountsamount listedof belowthe general fund revenue estimate for the succeeding fiscal year, and for fiscal year 2018, the total proposed expenditures from eachthe fund:State General Fund in Part of the overall budget shall not exceed ninety-nine percent (99%) of the amount of general fund revenue estimate for the succeeding fiscal year.  The general fund revenue estimate shall be the estimate jointly adopted by the Governor and the Joint Legislative Budget Committee.  The Legislative Budget Office may recommend additional taxes or sources of revenue if in its judgment those additional funds are necessary to adequately support the functions of the state government.

FUND                              FUND NUMBER         AMOUNT Unclaimed Property Fund           3317800000      $17,911,475.00 Department of Revenue             3376900000      $ 7,400,000.00 Hurricane Disaster Reserve Fund   667SS00000      $    18,850.00 TOTAL                                             $25,330,325.00      SECTION 2.  DuringSection Fiscal27-103-139, YearMississippi 2019,Code the State Fiscal Officer shall transfer One Million Five Hundred Thousand Dollars ($1,500,000.00) of Budget1972, Contingencyis Fundsbrought toforward theas Mississippifollows: Development Authority for the National Diabetes and Obesity Research Center for contracting with the Cleveland Clinic;

and     Three27-103-139.  MillionOn Sixor Hundredbefore Seventy-sixNovember Thousand15 Fivepreceding Hundredeach Sixty-sixregular Dollarssession ($3,676,566.00)of the Legislature, except the first regular session of Capitala Expensenew Fundsterm of office, the Governor shall submit to the Departmentmembers of Correctionsthe forLegislature, medicalthe Legislative Budget Office or the members-elect, as the case may be, and privateto prisons.the executive head of each state agency a balanced budget for the succeeding fiscal year.

     The SECTIONbudget 3. submitted Forshall Fiscalbe Yearprepared 2019,in a format that will include performance measurement data associated with the various programs operated by each agency.  The total proposed expenditures in the balanced budget shall not exceed the amount of estimated revenues that will be available for appropriation or use during the succeeding fiscal year, including any balances other than unencumbered balances in general funds that will be on hand at the close of the then current fiscal year, as determined by the revenue estimate jointly adopted by the Governor and the Legislative Budget Committee.  The total proposed expenditures from the State FiscalGeneral OfficerFund in the balanced budget shall transfernot toexceed ninety-eight percent (98%) of the Mississippiamount Developmentof Authoritygeneral Twofund Millionrevenue Sevenestimate Hundredfor Thousandthe Dollarssucceeding ($2,700,000.00)fiscal year.  However, for fiscal years 2010, 2011, 2012, 2016 and 2017 only, the total proposed expenditures from the State General Fund in the balanced budget shall not exceed one hundred percent (100%) of Capitalthe Expenseamount Fundsof the general fund revenue estimate for the Greenvillesucceeding Airportfiscal year, and Sevenfor Hundredfiscal Fiftyyear Thousand2018, Dollarsthe ($750,000.00)total proposed expenditures from the State General Fund in the balanced budget shall not exceed ninety-nine percent (99%) of Capitalthe Expenseamount Fundsof general fund revenue estimate for the Airsucceeding Servicefiscal Developmentyear.  Act.The general fund revenue estimate shall be the estimate jointly adopted by the Governor and the Joint Legislative Budget Committee.

     NotwithstandingThe revenues used in preparing the amountbalanced transferredbudget shall be only those revenues that will be available under the provisionsgeneral laws of the section,state inas nothey eventexist when the balanced budget is prepared, and shall not include any proposed revenues that would become available only after the amountenactment transferredof exceednew legislation.  If the amountGovernor lapsedhas any recommendations for theseadditional projectsproposed atexpenditures or proposed revenues that are not included in his balanced budget, he shall submit those recommendations in a supplement that is separate from his balanced budget, and whenever the endGovernor recommends any such additional proposed expenditures, he also shall recommend proposed revenues that are sufficient to fund the additional proposed expenditures, providing specific details regarding the sources and the total amount of Fiscalthose Yearproposed 2018.revenues.

     SECTIONThe 4.Governor may employ a budget officer for the purpose of receiving information from the State Fiscal Officer and preparing his recommendations on the budget.  If the Governor determines that information received from the State Fiscal Officer is not sufficient to enable him to prepare his budget recommendations, he may request an appropriation from the Legislature to provide additional staff within the Governor's office for that purpose.  At the first regular session after his election for Governor, the Governor shall submit any budget recommendations plus the required revenue source recommendations no later than January 31 of that year.

 For     FiscalSECTION Year3.  2019,Section the27-103-203, StateMississippi FiscalCode Officer shall transfer One Million Eight Hundred Thousand Dollars ($1,800,000.00) of Capital1972, Expenseis Fundsbrought toforward theas Departmentfollows: of Revenue.  The department shall have the authority to receive, escalate, budget and expend the funds provided within this section in accordance with rules and regulations of the Department of Finance and Administration in a manner consistent with the escalation of federal funds.

     SECTION27-103-203.  5.(1)  There is created in the State Treasury a special fund, separate and apart from any other fund, to be designated the Working Cash-Stabilization Reserve Fund.

 Section     22,(2)  ChapterThe 99,Working LawsCash-Stabilization ofReserve 2017,Fund whichshall providesnot be considered as a surplus or available funds when adopting a balanced budget as required by law.  The State Treasurer shall invest all sums in the Working Cash-Stabilization Reserve Fund not needed for the fundingpurposes provided for in this section in certificates of deposit, repurchase agreements and other securities as authorized in Section 27-105-33(d) or Section 7-9-103, as the State Treasurer may determine to yield the highest market rate available.  If the Ayers Settlement Fund is created under Section 37-101-27(5), the first Five Million Dollars ($5,000,000.00) of interest earned on those sums each fiscal year shall be deposited into that fund until a certaintotal numberof Seventy Million Dollars ($70,000,000.00) has been deposited into the fund.  The interest, or the remaining interest if the Ayers Settlement Fund is created, that is earned on those sums shall be deposited in the Working Cash-Stabilization Reserve Fund until the balance of Homeprincipal and Community-Basedinterest Waiverin slotsthe fund reaches ten percent (10%) of the total General Fund appropriations for the current fiscal year, and all interest earned in excess of amounts necessary to maintain the ten percent (10%) fund balance requirement shall be deposited by the State DepartmentTreasurer ofinto Mentalthe Health,State isGeneral repealed.Fund.

     SECTION(3)  6.The Working Cash-Stabilization Reserve Fund, except for Fifteen Million Dollars ($15,000,000.00) and the amount of the interest and income earned on the principal of the Ayers Endowment Trust created by Section 37-101-27, shall be used by the State Treasurer for cash flow needs throughout the year when the Executive Director of the Department of Finance and Administration certifies that in his opinion there will be cash flow deficiencies in the State General Fund.  No borrowing of monies from other special funds for such purposes as authorized by Section 31-17-101 et seq., shall be made as long as an unencumbered balance in excess of Fifteen Million Dollars ($15,000,000.00) and the interest and income earned on the principal of the Ayers Endowment Trust created by Section 37-101-27 remains in the fund.  The State Treasurer shall reimburse the fund for all sums borrowed for those purposes from General Fund revenues collected during the fiscal year in which those funds are used.  The State Treasurer shall immediately notify the Legislative Budget Office and the State Department of Finance and Administration of each transfer into and out of the fund.  Fifteen Million Dollars ($15,000,000.00) in the Working Cash-Stabilization Reserve Fund shall remain available for exclusive use of the Ayers Endowment Trust created by Section 37-101-27.  If the Ayers Settlement Fund is created under Section 37-101-27(5), beginning when a total of Fifty-five Million Dollars ($55,000,000.00) has been deposited into the fund, for each annual deposit of interest to that fund under subsection (2) of this section, the Ayers Endowment Trust created under Section 37-101-27(1) shall be reduced by an equal amount annually until the Ayers Endowment Trust reaches Zero Dollars ($0.00), at which time any requirements concerning the Ayers Endowment Trust in this section shall be null and void.

 Section     37,(4) Chapter The 102,Working LawsCash-Stabilization Reserve Fund, except for Forty Million Dollars ($40,000,000.00), shall also be used for the purpose of 2017,covering isany amendedprojected deficits that may occur in the General Fund at the end of a fiscal year as follows:a result of revenue shortfalls.  If the Governor determines that a deficit in revenues from all sources may occur, it shall be the duty of the Executive Director of the Department of Finance and Administration to transfer such funds as necessary to the General Fund to alleviate the deficit in accordance with Sections 27-104-13 and 31-17-123;

    however, Sectionnot 37.more than Fifty Million Dollars ($50,000,000.00) may be transferred from the fund for that purpose in any one (1) fiscal year with the exception of fiscal year 2016.  However, for fiscal year 2017, not more than One Hundred Million Dollars ($100,000,000.00) may be transferred from the fund for that purpose.

 Of     the(5)  The Working Cash-Stabilization Reserve Fund also shall be used to provide funds appropriatedfor inthe SectionDisaster 1(a), * * *Assistance TwentyTrust MillionFund Threewhen Hundredthose Eighty-onefunds Thousandare Oneimmediately Hundredneeded Fifty-nineto Dollarsprovide ($20,381,159.00)for Twentydisaster Millionassistance Fourunder HundredSections Forty-seven33-15-301 Thousandthrough Sixty-six33-15-317.  DollarsAny ($20,447,066.00)transfer shallof befunds usedfrom forthe Working Cash-Stabilization Reserve Fund to the SchoolDisaster RecognitionAssistance ProgramTrust authorizedFund byshall Sectionbe 37-19-10,made Mississippiin Codeaccordance with the provisions of 1972.subsection (5) of Section 33-15-307.

SECTION     7. (6)  SectionThe 5,Department Chapterof 102,Finance Lawsand Administration shall immediately send notice of 2017,any istransfers amendedmade, asor follows:other action taken under authority of this section, to the Legislative Budget Office.

Section     5.(7)  Funds deposited in the Working Cash-Stabilization Reserve Fund shall be used only for the purposes specified in this section, and as long as the provisions of this section remain in effect, no other expenditure, appropriation or transfer of funds in the Working Cash-Stabilization Reserve Fund shall be made except by act of the Legislature making specific reference to the Working Cash-Stabilization Reserve Fund as the source of those funds.

 Of     the(8)  Any funds appropriated infrom thisthe act,Working theCash-Stabilization followingReserve positionsFund that are authorizedunexpended forat the Stateend Department of Education,a excludingfiscal theyear expensesshall oflapse into the VocationalWorking andCash-Stabilization TechnicalReserve EducationFund. Division:

      AUTHORIZEDSECTION POSITIONS:4.  Section 27-103-211, Mississippi Code of 1972, is brought forward as follows:

Permanent:        Full27-103-211.  Time...........The total sum appropriated by the Legislature from the State General Fund for any fiscal year shall not exceed ninety-eight percent (98%) of the general fund revenue estimate for that fiscal year developed by the Department of Revenue and the University Research Center and adopted by the Joint Legislative Budget Committee.  The unencumbered balances in general funds that will be available and on hand at the close of the fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund under Section 27-103-203.  However, for fiscal years 2010, 2011, 2012, 2015, 2016 and only, the total sum appropriated by the Legislature from the State General Fund shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for that fiscal year, and for fiscal year 2018, the total sum appropriated by the Legislature from the State General Fund shall not exceed ninety-nine percent (99%) of the amount of the general fund revenue estimate adopted by the Joint Legislative Budget Committee for that fiscal year.

          392SECTION Part5.  Time..........Section 27-103-213, Mississippi Code of 1972, is brought forward as follows:

            327-103-213.  Time-Limited:(1)  The unencumbered cash balance in the General Fund in the State Treasury at the close of each fiscal year shall be distributed to the Municipal Revolving Fund, the Working Cash-Stabilization Reserve Fund and the Capital Expense Fund in the manner provided in this section, except for fiscal year 2014 in which the unencumbered cash balance at the close of fiscal year 2014 shall be distributed as provided in subsection (4) of this section, and fiscal year 2016 in which the unencumbered cash balance at the close of fiscal year 2016 shall be distributed as provided in subsection (5) of this section.

Full Time........... * * *121 Part Time..........         0      With(2)  the(a)  fundsAt herein appropriated, it shall be the agency'send responsibilityof toeach makefiscal certainyear, that funds required to be appropriated for "Personal Services" for Fiscal Year 2019 do not exceed Fiscal Year 2018 funds appropriated for that purpose, unless programs or positions are added to the agency'sExecutive FiscalDirector Yearof 2018 budget by the MississippiDepartment Legislature. of BasedFinance onand dataAdministration providedand by the Legislative Budget Office, the State PersonnelTreasurer Board shall determine and publish the projectedextent annual cost to fully fund all appropriated positions in compliance with the provisions of this act.  It shall be the responsibilityunencumbered ofcash thebalance agencyexisting headin to ensure that no single personnel action increases this projected annual cost and/or the FiscalGeneral YearFund 2018in appropriations for "Personal Services" when annualized, with the exception of escalated funds and the award of benchmarks.  If, at the time the agency takes any action to change "Personal Services," the State PersonnelTreasury. Board determines that the agency has taken an action which would cause the agency to exceed this projected annual cost or the Fiscal Year 2018 "Personal Services" appropriated level, when annualized, then only those actions which reduce the projected annual cost and/or the appropriation requirement will be processed by the State Personnel Board until such time as the requirements of this provision are met.

              Any(b)  transfersAs used in this section, the term "unencumbered cash balance" or escalations"unencumbered shallGeneral beFund madecash inbalance" accordancemeans withthe amount in the terms,State conditionsGeneral andFund proceduresafter establisheddeducting byall lawappropriations orand allowableother underexpenditures.  However, if the termsLegislature sethas forthauthorized withinadditional thisor act. deficit Theappropriations or transfers from the State PersonnelGeneral BoardFund shallfor notthat escalatefiscal positionsyear, withoutthose writtenamounts approvalshall be subtracted from the Departmentunencumbered ofcash Financebalance andin Administration. the General Fund before determining the amount available for distribution.  The Departmentunencumbered General Fund cash balance shall not be determined until after August 31 of Financeeach year, and Administrationit shall not providebe writtenmade approvaluntil tothe escalateState anyTreasurer fundshas forreceived salariesa and/orcertificate positionsin withoutwriting prooffrom the Executive Director of availabilitythe Department of newFinance orand additionalAdministration, fundswith abovenotification to the appropriatedLegislative level.Budget Office, showing the amount of the unencumbered General Fund cash balance.

     No(3)  generalIf fundsany authorizedunencumbered toGeneral beFund expendedcash hereinbalance shallis beavailable usedfor todistribution replaceunder federalthis fundssection, and/orthe otherdistribution specialof those funds whichshall arebe beingmade usedby forthe salariesExecutive authorizedDirector underof the provisionsDepartment of thisFinance act and whichAdministration arein withdrawnthe andfollowing noorder: longer available.

              None(a)  ofTo the fundsMunicipal hereinRevolving appropriatedFund, shallan beamount usedequal in violation of Internal Revenue Service Publication 15-A relating to theSeven reportingHundred ofFifty incomeThousand paidDollars to($750,000.00); contract employees, as interpreted by the Office of the State Auditor.

    however, SECTIONif 8. the Sectionamount 13,of Chapterthe 64,unencumbered LawsGeneral ofFund 2017,cash balance is amendedless asthan follows:Seven Hundred Fifty Thousand Dollars ($750,000.00), then the total amount of the unencumbered General Fund cash balance shall be distributed to the Municipal Revolving Fund.

              Section(b)  13. To Thethe CommissionerWorking ofCash-Stabilization theReserve MississippiFund, Departmentfifty ofpercent Corrections(50%) isof herebythe authorizedamount toof transferthe spendingunencumbered authorityGeneral betweenFund andcash withinbalance budgets,after boththe positionsdistributions andare funds,made inunder anparagraph amount(a), not to exceed twenty-fiveten percent (25%)(10%) of the authorizedGeneral budgetsFund inappropriations thefor aggregate.  It is further the intentionfiscal ofyear the Legislature that the Departmentunencumbered ofGeneral CorrectionsFund shallcash submitbalance writtenrepresents.  justificationFor for the transferpurposes to the Legislative Budget Office and the Department of Financethis andparagraph Administration(b), on or before the fifteenthappropriations offor the monthfiscal prioryear to the effective date of the transfer. * * *  However, no transfers shall be authorized which increase the majortotal objectamount ofcontained expenditure "Salaries, Wages and Fringe Benefits" in anythe budgetactual authorizedappropriation inbills Sectionpassed 3by ofthe thisLegislature. act.

SECTION          9. (c)  SectionTo 3,the ChapterCapital 1,Expense LawsFund, any remaining amount of 2017,the isunencumbered amendedGeneral asFund follows:cash balance after the distributions are made under paragraphs (a) and (b).

     Section(4)  3.For fiscal year 2014, if any unencumbered General Fund cash balance is available for distribution under this section at the close of the fiscal year, the distribution of those funds shall be made by the Executive Director of the Department of Finance and Administration in the following order:

 Of          the(a)  fundsTo appropriated under the provisionsMunicipal ofRevolving SectionsFund, 1an andamount 2,equal notto moreSeven thanHundred theFifty amountsThousand setDollars forth($750,000.00); below shall be expended for the respective major objects or purposes of expenditure and authorized positions:

DIVISIONhowever, OFif MISSISSIPPIthe HIGHWAYamount SAFETYof PATROLthe  unencumbered MAJORGeneral OBJECTSFund OFcash EXPENDITURE:balance is less than Seven Hundred Fifty Thousand Dollars ($750,000.00), then the total amount of the unencumbered General Fund cash balance shall be distributed to the Municipal Revolving Fund.