Vermont § 4026 - Education Fund budget stabilization reserve; creation and purpose [Effective until contingency met; see also 16 V.S.A. § 4026 effective July 1, 2028 if contingency met, set out below]

§ 4026. Education Fund budget stabilization reserve; creation and purpose [Effective until contingency met; see also 16 V.S.A. § 4026 effective July 1, 2028 if contingency met, set out below]

• (a) It is the purpose of this section to reduce the effects of annual variations in State
  revenues upon the Education Fund budget of the State by reserving certain surpluses
  in Education Fund revenues that may accrue for the purpose of offsetting deficits. (b) There is hereby created an Education Fund budget stabilization reserve determined
  on a budgetary basis and administered by the Commissioner of Finance and Management.
  Any budgetary basis undesignated Education Fund surplus occurring at the close of
  a fiscal year shall be reserved within the Education Fund budget stabilization reserve,
  provided that the balance reserved shall not exceed five percent of the prior fiscal
  year education fund appropriations, reduced by the amount distributed to school districts
  by municipalities for netting purposes under 32 V.S.A. § 5402(c), and any additional amounts as may be authorized by the General Assembly. Any undesignated
  Education Fund surplus and accrued interest remaining after the Education Fund budget
  stabilization reserve has been brought to the maximum authorized level shall remain
  in the Education Fund. When the General Assembly next meets, it may specifically appropriate
  the use of the undesignated Education Fund surplus for increased support for education. (c) In any fiscal year, if the Education Fund is found to have an undesignated fund deficit,
  the Education 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 Education 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. (e) The enactment of this chapter and other provisions of the Equal Educational Opportunity
  Act of which it is a part have been premised upon estimates of balances of revenues
  to be raised and expenditures to be made under the act for such purposes as education
  spending payments, categorical State support grants, provisions for property tax income
  sensitivity, payments in lieu of taxes, current use value appraisals, tax stabilization
  agreements, the stabilization reserve established by this section, and for other purposes.
  If the stabilization reserve established under this section should in any fiscal year
  be less than 5.0 percent of the prior fiscal year’s appropriations from the Education
  Fund, as defined in subsection (b) of this section, the Joint Fiscal Committee shall
  review the information provided pursuant to 32 V.S.A. § 5402b and provide the General Assembly its recommendations for change necessary to restore
  the stabilization reserve to the statutory level provided in subsection (b) of this
  section. (Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 94, eff. March 11, 1998; 2001, No. 63, § 265; 2001, No. 110 (Adj. Sess.), § 46, eff. May 23, 2002; 2003, No. 68, § 26, eff. June 18, 2003; 2019, No. 6, § 83, eff. April 22, 2019; 2023, No. 183 (Adj. Sess.), § 23, eff. July 1, 2024.) § 4026. Education Fund budget stabilization reserve [Effective July 1, 2028 if contingency met; see also 16 V.S.A. § 4026 effective until contingency met, set out above] (a) It is the purpose of this section to reduce the effects of annual variations in State
  revenues upon the Education Fund budget of the State by reserving certain surpluses
  in Education Fund revenues that may accrue for the purpose of offsetting deficits. (b) There is hereby created an Education Fund budget stabilization reserve determined
  on a budgetary basis and administered by the Commissioner of Finance and Management.
  Any budgetary basis undesignated Education Fund surplus occurring at the close of
  a fiscal year shall be reserved within the Education Fund budget stabilization reserve,
  provided that the balance reserved shall not exceed five percent of the prior fiscal
  year education fund appropriations, reduced by the amount distributed to school districts
  by municipalities for netting purposes under 32 V.S.A. § 5402(c), and any additional amounts as may be authorized by the General Assembly. Any undesignated
  Education Fund surplus and accrued interest remaining after the Education Fund budget
  stabilization reserve has been brought to the maximum authorized level shall remain
  in the Education Fund. When the General Assembly next meets, it may specifically appropriate
  the use of the undesignated Education Fund surplus for increased support for education. (c) In any fiscal year, if the Education Fund is found to have an undesignated fund deficit,
  the Education 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 Education 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. (e) If the stabilization reserve established under this section should in any fiscal year
  be less than 5.0 percent of the prior fiscal year’s appropriations from the Education
  Fund, as defined in subsection (b) of this section, the Joint Fiscal Committee shall
  review the information provided pursuant to 32 V.S.A. § 5402b and provide the General Assembly its recommendations for change necessary to restore
  the stabilization reserve to the statutory level provided in subsection (b) of this
  section. (Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 94, eff. March 11, 1998; 2001, No. 63, § 265; 2001, No. 110 (Adj. Sess.), § 46, eff. May 23, 2002; 2003, No. 68, § 26, eff. June 18, 2003; 2019, No. 6, § 83, eff. April 22, 2019; 2023, No. 183 (Adj. Sess.), § 23, eff. July 1, 2024; 2025, No. 73, § 39, contingently eff. July 1, 2028.)