Vermont § 308 - General Fund Budget Stabilization Reserve; creation and purpose

§ 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. (Added 1987, No. 114, § 2, eff. June 29, 1987; amended 1991, No. 50, § 284; 1993, No. 25, § 74, eff. May 18, 1993; 1997, No. 61, § 260b.)