Bill > H2672

This bill mandates that the governor must submit a balanced budget to the general court, meaning that projected spending cannot exceed expected revenue, and if additional spending is approved, corresponding revenue must be identified. A balanced budget is defined as having a consolidated net surplus (the sum of undesignated balances in state funds, excluding those exempted by the general court) that is at least half of one percent of the fiscal year's revenue receipts, and also requires that at least half of one percent of revenue receipts be transferred to the Commonwealth Stabilization Fund. The bill establishes the Commonwealth Stabilization Fund, which holds undesignated balances from state budgetary funds and can only be accessed by a recorded vote of both branches of the general court. Furthermore, the comptroller will annually report the consolidated net surplus, and a portion equal to half of one percent of the previous year's tax revenue will be available for current year spending, with another equal amount transferred to the Stabilization Fund; any remaining surplus will also be transferred to the Stabilization Fund, with transfers made proportionally from fund balances without creating deficits, and any existing fund deficits will be addressed by transferring positive balances from other contributing funds before the surplus is certified.