Date: 03/18/2009

Final
SUMMARY for HCR09-1002

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Refer House Concurrent Resolution 09-1002 to the CPASS



12:01 PM -- HCR 09-1002 - Concerning a Constitutional Rainy Day Fund

Representative Gardner C., prime sponsor, briefly discussed the provisions of the bill. He noted that the resolution refers an amendment to the state constitution to voters in November 2010 to create the State Savings and Trust Fund in the State Treasury. The amendment does not require that any money be allocated to the fund; separate legislation would be needed to put money in the fund. Income and interest earned on money deposited in the fund would be counted as revenue subject to TABOR. The resolution only takes effect if approved by voters.

The committee discussed the mechanisms in the resolution for accessing money. Representative Gardner C. responded by saying that the legislature can access money from the saving account by a majority vote to transfer to the General Fund up to whatever amount is required to allow General Fund appropriations to increase by the allowable growth rate (6 percent) during any year in which there is insufficient revenue for that to occur. He noted that by a two-thirds vote, the legislature could transfer or appropriate money from the fund for any purpose.

On the repayment requirements, Representative Gardner C. noted that the resolution requires the General Assembly to repay or begin repaying the fund in the fiscal year immediately following any year or series of consecutive years during which money is spent from the fund. Specifically, the amendment requires that one-sixth of the allowable increase in General Fund appropriations be used to repay the fund each year until the fund's balance equals or exceeds the balance that existed prior to the first expenditure of money from the fund, adjusted for inflation. Under current law, that would require that growth in General Fund appropriations be limited to 5 percent rather than 6 percent, with the remaining 1 percent deposited into the fund for as many years as it takes for the fund to be fully repaid. After a brief committee discussion, the resolution was placed on the table for action and no amendments were offered.


12:16 PM
BILL:HCR 09-1002
TIME: 12:16:39 PM
MOVED:Roberts
MOTION:Refer House Concurrent Resolution 09-1002 to the Committee on Appropriations. The motion passed on a 8-1 vote.
SECONDED:Lambert
VOTE
Apuan
Yes
Benefield
Excused
Gerou
Yes
Kefalas
Yes
Kerr A.
No
Lambert
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
Yes
Judd
Excused
Final YES: 8 NO: 1 EXC: 2 ABS: 0 FINAL ACTION: PASS



12:22 PM

Recess.