November 27, 2020
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_h5707__
HB 5707

1
A bill to be entitled
2An act relating to the Florida Savings Fund; amending s.
3215.32, F.S.; establishing the Florida Savings Fund;
4conforming provisions; specifying that the fund balance is
5part of the working capital balance of the state;
6providing for the calculation of the required fund
7balance; providing for transfer of funds from the General
8Revenue Fund to the Florida Savings Fund; requiring that
9interest earned by the Florida Savings Fund be deposited
10in the General Revenue Fund; providing for the use of
11funds in the Florida Savings Fund; amending s. 216.221,
12F.S.; specifying conditions for determining when a deficit
13in the General Revenue Fund is deemed to occur for
14purposes of adjusting appropriations to prevent such a
15deficit; authorizing the Chief Financial Officer to
16transfer funds from the Florida Savings Fund to the
17General Revenue Fund under certain circumstances;
18conforming cross-references; amending s. 216.222, F.S.;
19revising the conditions for determining when a deficit in
20the General Revenue Fund is deemed to occur for purposes
21of transferring funds from the Budget Stabilization Fund
22to offset such a deficit; amending s. 252.37, F.S.;
23authorizing funds in the Florida Savings Fund to be
24transferred and expended under certain emergency
25conditions; providing an effective date.
26
27Be It Enacted by the Legislature of the State of Florida:
28
29     Section 1.  Subsection (1) and paragraph (a) of subsection
30(2) of section 215.32, Florida Statutes, are amended, and
31paragraph (d) is added to subsection (2) of that section, to
32read:
33     215.32  State funds; segregation.-
34     (1)  All moneys received by the state shall be deposited in
35the State Treasury unless specifically provided otherwise by law
36and shall be deposited in and accounted for by the Chief
37Financial Officer within the following funds, which funds are
38hereby created and established:
39     (a)  General Revenue Fund.
40     (b)  Trust funds.
41     (c)  Budget Stabilization Fund.
42(d)  Florida Savings Fund.
43     (2)  The source and use of each of these funds shall be as
44follows:
45     (a)  The General Revenue Fund shall consist of all moneys
46received by the state from every source whatsoever, except as
47provided in paragraphs (b), and (c), and (d). Such moneys shall
48be expended pursuant to General Revenue Fund appropriations
49acts, transferred as provided in paragraph (c) or paragraph (d),
50or maintained as unallocated general revenue. Unallocated
51general revenue shall be considered the working capital balance
52of the state and shall consist of moneys in the General Revenue
53Fund that are in excess of the amount needed to meet General
54Revenue Fund appropriations for the current fiscal year and the
55balance of the Florida Savings Fund.
56     (d)1.  The Florida Savings Fund shall consist of amounts
57equal to the difference between 5 percent of the official
58estimate of total funds available for appropriation from the
59General Revenue Fund for a fiscal year and the balance of the
60Lawton Chiles Endowment Fund, which shall be calculated
61according to the following formula:
62
63
FSF = (0.05 x AGR) - LCE
64
65Where:
66FSF =     the required balance of the Florida Savings Fund
67established pursuant to this subparagraph.
68AGR =     the official estimate of total funds available for
69appropriation from the General Revenue Fund according
70to the most recent financial outlook statement adopted
71by the Revenue Estimating Conference before the
72Legislature's enactment of the General Appropriations
73Act.
74LCE =     the balance of the Lawton Chiles Endowment Fund as of
75the date that the Revenue Estimating Conference
76certifies the required balance of the Florida Savings
77Fund pursuant to subparagraph 2.
78
79     2.  Before the effective date of the General Appropriations
80Act for a fiscal year, the Revenue Estimating Conference shall
81certify the required balance of the Florida Savings Fund for
82that fiscal year, calculated as provided in subparagraph 1., and
83the amount needed for transfer to the fund for its balance to
84equal the required balance.
85     3.  The Chief Financial Officer, once each calendar
86quarter, shall transfer from the General Revenue Fund to the
87Florida Savings Fund an amount equal to 25 percent of the amount
88certified by the Revenue Estimating Conference as needed for
89transfer to the Florida Savings Fund pursuant to subparagraph 2.
90     4.  Interest earned by the Florida Savings Fund shall be
91deposited in the General Revenue Fund.
92     5.  Funds in the Florida Savings Fund may only be expended
93or transferred as authorized in s. 216.221 and this section.
94Except as provided in this section, an appropriation or transfer
95may not be made from the Florida Savings Fund for any other
96purpose.
97     a.  Funds in the Florida Savings Fund may be expended
98pursuant to s. 252.37 for an emergency as defined in s. 252.34
99declared by the Governor under s. 252.36 or declared by law.
100     b.  Funds in the Florida Savings Fund may be transferred to
101the General Revenue Fund pursuant to s. 215.18.
102     Section 2.  Section 216.221, Florida Statutes, is amended
103to read:
104     216.221  Appropriations as maximum appropriations;
105adjustment of budgets to avoid or eliminate deficits.-
106     (1)  All appropriations shall be maximum appropriations,
107based upon the collection of sufficient revenues to meet and
108provide for such appropriations. It is the duty of the Governor,
109as chief budget officer, to ensure that revenues collected will
110be sufficient to meet the appropriations and that no deficit
111occurs in any state fund.
112     (2)  For purposes of this section, a deficit in the General
113Revenue Fund is deemed to occur when the official estimate of
114funds available in the General Revenue Fund, combined with the
115funds available in the Florida Savings Fund, for a fiscal year
116falls below the total amount appropriated from the General
117Revenue Fund for that fiscal year.
118     (3)(2)  The Legislature may annually provide direction in
119the General Appropriations Act regarding use of any state funds
120to offset General Revenue Fund deficits.
121     (4)  If the Chief Financial Officer determines, in
122consultation with the Revenue Estimating Conference, that the
123total funds available in the General Revenue Fund for a fiscal
124year fall below the total amount appropriated from the General
125Revenue Fund for that fiscal year, the Chief Financial Officer
126shall transfer an amount necessary to cover the shortfall from
127the Florida Savings Fund to the General Revenue Fund.
128     (5)(3)  For purposes of preventing a deficit in the General
129Revenue Fund, all branches and agencies of government shall
130participate in deficit reduction efforts. Absent specific
131legislative direction, when budget reductions are required in
132order to prevent a deficit under the provisions of subsection
133(9) (7), each branch shall reduce its General Revenue Fund
134appropriations by a proportional amount.
135     (6)(4)  For purposes of preventing a deficit in the General
136Revenue Fund, appropriations to the legislative branch that are
137voluntarily placed in their reserve by the President of the
138Senate or the Speaker of the House of Representatives, or by
139both, may not be reduced, but may be included in any deficit
140reduction plan.
141     (7)(5)(a)  If, in the opinion of the Governor, after
142consultation with the Revenue Estimating Conference, a deficit
143will occur in the General Revenue Fund, he or she shall so
144certify to the commission and to the Chief Justice of the
145Supreme Court. No more than 30 days after certifying that a
146deficit will occur in the General Revenue Fund, the Governor
147shall develop for the executive branch, and the Chief Justice of
148the Supreme Court shall develop for the judicial branch, and
149provide to the commission and to the Legislature plans of action
150to eliminate the deficit.
151     (b)  If, in the opinion of the President of the Senate and
152the Speaker of the House of Representatives, after consultation
153with the Revenue Estimating Conference, a deficit will occur in
154the General Revenue Fund and the Governor has not certified the
155deficit, the President of the Senate and the Speaker of the
156House of Representatives shall so certify. Within 30 days after
157such certification, the Governor shall develop for the executive
158branch and the Chief Justice of the Supreme Court shall develop
159for the judicial branch and provide to the commission and to the
160Legislature plans of action to eliminate the deficit.
161     (c)  In developing a plan of action to prevent deficits in
162accordance with subsection (9) (7), the Governor and Chief
163Justice shall, to the extent possible, preserve legislative
164policy and intent, and, absent any specific direction to the
165contrary in the General Appropriations Act, the Governor and
166Chief Justice shall comply with the following guidelines for
167reductions in the approved operating budgets of the executive
168branch and the judicial branch:
169     1.  Education budgets should not be reduced more than
170provided for in s. 215.16(2).
171     2.  The use of nonrecurring funds to solve recurring
172deficits should be minimized.
173     3.  Newly created programs that are not fully implemented
174and programs with critical audits, evaluations, and reviews
175should receive first consideration for reductions.
176     4.  No agencies or branches of government receiving
177appropriations should be exempt from reductions.
178     5.  When reductions in positions are required, the focus
179should be initially on vacant positions.
180     6.  Reductions that would cause substantial losses of
181federal funds should be minimized.
182     7.  Reductions to statewide programs should occur only
183after review of programs that provide only local benefits.
184     8.  Reductions in administrative and support functions
185should be considered before reductions in direct-support
186services.
187     9.  Maximum reductions should be considered in budgets for
188expenses including travel and in budgets for equipment
189replacement, outside consultants, and contracts.
190     10.  Reductions in salaries for elected state officials
191should be considered.
192     11.  Reductions that adversely affect the public health,
193safety, and welfare should be minimized.
194     12.  The Budget Stabilization Fund should not be reduced to
195a level that would impair the financial stability of this state.
196     13.  Reductions in programs that are traditionally funded
197by the private sector and that may be assumed by private
198enterprise should be considered.
199     14.  Reductions in programs that are duplicated among state
200agencies or branches of government should be considered.
201     (8)(6)  If the Revenue Estimating Conference projects a
202deficit in the General Revenue Fund in excess of 1.5 percent of
203the moneys appropriated from the General Revenue Fund during a
204fiscal year or when the cumulative total of a series of
205projected deficits in the General Revenue Fund exceeds 1.5
206percent of the moneys appropriated from the General Revenue
207Fund, the deficit shall be resolved by the Legislature.
208     (9)(7)  Deficits in the General Revenue Fund that do not
209meet the amounts specified by subsection (8) (6) shall be
210resolved by the Governor for the executive branch and the Chief
211Justice of the Supreme Court for the judicial branch. The
212Governor and Chief Justice shall implement any directions
213provided in the General Appropriations Act related to
214eliminating deficits and to reducing agency and judicial branch
215budgets, including the use of those legislative appropriations
216voluntarily placed in reserve. In addition, the Governor and
217Chief Justice shall implement any directions in the General
218Appropriations Act relating to the resolution of deficit
219situations. When reducing state agency or judicial branch
220budgets, the Governor or the Chief Justice, respectively, shall
221use the guidelines prescribed in subsection (7) (5). The
222Executive Office of the Governor, and the Chief Justice for the
223judicial branch, shall implement the deficit reduction plans
224through amendments to the approved operating budgets in
225accordance with s. 216.181.
226     (10)(8)  The Chief Financial Officer also has the duty to
227ensure that revenues being collected will be sufficient to meet
228the appropriations and that no deficit occurs in any fund of the
229state.
230     (11)(9)  If, in the opinion of the Chief Financial Officer,
231after consultation with the Revenue Estimating Conference, a
232deficit will occur, he or she shall report his or her opinion to
233the Governor, the President of the Senate, and the Speaker of
234the House of Representatives in writing. In the event the
235Governor does not certify a deficit, or the President of the
236Senate and the Speaker of the House of Representatives do not
237certify a deficit within 10 days after the Chief Financial
238Officer's report, the Chief Financial Officer shall report his
239or her findings and opinion to the commission and the Chief
240Justice of the Supreme Court.
241     (12)(10)  When advised by the Revenue Estimating
242Conference, the Chief Financial Officer, or any agency
243responsible for a trust fund that a deficit will occur with
244respect to the appropriations from a specific trust fund in the
245current fiscal year, the Governor for the executive branch, or
246the Chief Justice for the judicial branch, shall develop a plan
247of action to eliminate the deficit. Before implementing the plan
248of action, the Governor or the Chief Justice must comply with
249the provisions of s. 216.177(2), and actions to resolve deficits
250in excess of $1 million must be approved by the Legislative
251Budget Commission. In developing the plan of action, the
252Governor or the Chief Justice shall, to the extent possible,
253preserve legislative policy and intent.
254     (13)(11)  Once a deficit is determined to have occurred and
255action is taken to reduce approved operating budgets and release
256authority, no action may be taken to restore the reductions,
257either directly or indirectly.
258     Section 3.  Paragraph (a) of subsection (1) of section
259216.222, Florida Statutes, is amended to read:
260     216.222  Budget Stabilization Fund; criteria for
261withdrawing moneys.-
262     (1)  Moneys in the Budget Stabilization Fund may be
263transferred to the General Revenue Fund for:
264     (a)1.  Offsetting a deficit in the General Revenue Fund. A
265deficit is deemed to occur when the official estimate of funds
266available in the General Revenue Fund, combined with funds
267available in the Florida Savings Fund, for a fiscal year falls
268below the total amount appropriated from the General Revenue
269Fund for that fiscal year. Such a transfer must be made pursuant
270to s. 216.221, or pursuant to an appropriation by law.
271     2.  Notwithstanding the requirements of s. 216.221, if,
272after consultation with the Revenue Estimating Conference, the
273Chief Financial Officer believes that a deficit will occur in
274the General Revenue Fund and if:
275     a.  Fewer than 30 but more than 4 days are left in the
276fiscal year, the Legislature is not in session, and neither the
277Legislature nor the Legislative Budget Commission is scheduled
278to meet before the end of the fiscal year, or
279     b.  Fewer than 5 days are left in the fiscal year and the
280Governor and the Chief Justice, the Legislature, or the
281Legislative Budget Commission have not implemented measures to
282resolve the deficit,
283
284the Chief Financial Officer shall certify the deficit to the
285Governor, the Chief Justice, the President of the Senate, and
286the Speaker of the House of Representatives, and may thereafter
287withdraw funds from the Budget Stabilization Fund to offset the
288projected deficit in the General Revenue Fund. The Chief
289Financial Officer shall consult with the Governor and the chair
290and vice chair of the Legislative Budget Commission before any
291funds may be withdrawn from the Budget Stabilization Fund. At
292the beginning of the next fiscal year, the Chief Financial
293Officer shall promptly determine the General Revenue Fund
294balance to be carried forward. The Chief Financial Officer shall
295immediately repay the Budget Stabilization Fund for the
296withdrawn amount, up to the amount of the balance. If the
297General Revenue Fund balance carried forward is not sufficient
298to fully repay the Budget Stabilization Fund, the repayment of
299the remainder of the withdrawn funds shall be as provided in s.
300215.32(2)(c)3.
301     Section 4.  Subsection (2) of section 252.37, Florida
302Statutes, is amended to read:
303     252.37  Financing.-
304     (2)  It is the legislative intent that the first recourse
305be made to funds regularly appropriated to state and local
306agencies. If the Governor finds that the demands placed upon
307these funds in coping with a particular disaster declared by the
308Governor as a state of emergency are unreasonably great, she or
309he may make funds available by transferring and expending moneys
310appropriated for other purposes, by transferring and expending
311moneys out of any unappropriated surplus funds, or from the
312Budget Stabilization Fund or the Florida Savings Fund. Following
313the expiration or termination of the state of emergency, the
314Governor may transfer moneys with a budget amendment, subject to
315approval by the Legislative Budget Commission, to satisfy the
316budget authority granted for such emergency.
317     Section 5.  This act shall take effect upon becoming a law.


CODING: Words stricken are deletions; words underlined are additions.
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