SENATE BILL 135

55th legislature - STATE OF NEW MEXICO - second session, 2022

INTRODUCED BY

Siah Correa Hemphill and Mimi Stewart

 

 

 

 

 

AN ACT

RELATING TO STATE FUNDS; LIMITING TRANSFERS OF CERTAIN EXCESS REVENUE TO THE GENERAL FUND OPERATING RESERVE IF THE BALANCE OF THE TAX STABILIZATION RESERVE IS GREATER THAN TWENTY PERCENT OF THE AGGREGATE RECURRING APPROPRIATIONS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 6-4-4 NMSA 1978 (being Laws 1987, Chapter 347, Section 4, as amended) is amended to read:

     "6-4-4. TRANSFERS BETWEEN GENERAL FUND RESERVES.--

          A. [For the seventy-seventh and subsequent fiscal years] If the revenues of the general fund exceed the total of appropriations from the general fund, the excess revenue shall be transferred to the general fund operating reserve; provided that:

                (1) if the sum of the excess revenue plus the balance in the general fund operating reserve prior to the transfer is greater than eight percent of the aggregate recurring appropriations from the general fund for the previous fiscal year, then an amount equal to the smaller of either the amount of the excess revenue or the difference between the sum and eight percent of the aggregate recurring appropriations from the general fund for the previous fiscal year shall be transferred to the tax stabilization reserve; and

                (2) if, prior to the transfer, the balance of the tax stabilization reserve at the end of the fiscal year is greater than twenty percent of the aggregate recurring appropriations for that fiscal year from the general fund, as determined by the department of finance and administration, no transfer pursuant to this subsection shall be made.

          B. If the balance in the general fund operating reserve as of the end of a fiscal year is less than one percent of aggregate general fund appropriations for that fiscal year, as determined by the department of finance and administration, then an amount equal to the smaller of either one percent of aggregate general fund appropriations for that fiscal year or the amount necessary to bring the balance of the general fund operating reserve to one percent of aggregate general fund appropriations for that fiscal year shall be transferred from the tax stabilization reserve to the general fund operating reserve."