Finally, the bill prohibits the legislature from passing any bill that would
authorize the expenditure of moneys from the budget stabilization fund so as to
reduce the balance of the budget stabilization fund below 3% of the estimated
expenditures from the general fund during the fiscal year, as projected in the
biennial budget act or acts, and requires that at least two-thirds of the members of
each house of the legislature approve any other bill authorizing any expenditure of
moneys from the budget stabilization fund.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB237, s. 1 1Section 1. 13.39 of the statutes is created to read:
AB237,3,2 213.39 Expenditure of moneys from the budget stabilization fund. (1)
3Except as provided in sub. (2), at least two-thirds of the members of each house of

1the legislature must approve any bill authorizing the expenditure of moneys from the
2budget stabilization fund.
AB237,3,7 3(2) The legislature may not approve any bill authorizing the expenditure of
4moneys from the budget stabilization fund if the expenditure of moneys would cause
5the balance of the budget stabilization fund to fall below 3% of the estimated
6expenditures from the general fund during the fiscal year, as reported in the
7summary, as defined in s. 16.518 (1).
AB237, s. 2 8Section 2. 16.518 (title) of the statutes is amended to read:
AB237,3,10 916.518 (title) Transfers to the budget stabilization fund and the cash
10building projects fund
.
AB237, s. 3 11Section 3. 16.518 (3) (a) of the statutes is amended to read:
AB237,3,1712 16.518 (3) (a) Subject to par. (b), if the amount of moneys projected to be
13deposited in the general fund during the fiscal year that are designated as "Taxes"
14in the summary is less than the amount of such moneys actually deposited in the
15general fund during the fiscal year, the secretary shall annually transfer from the
16general fund to the budget stabilization fund 50% 100% of the amount calculated
17under sub. (2).
AB237, s. 4 18Section 4. 16.518 (3) (b) 1. of the statutes is amended to read:
AB237,3,2219 16.518 (3) (b) 1. If the balance of the budget stabilization fund on June 30 of
20the fiscal year is at least equal to 5% 11% of the estimated expenditures from the
21general fund during the fiscal year, as reported in the summary, the secretary may
22not make the transfer under par. (a).
AB237, s. 5 23Section 5. 20.875 (2) (r) of the statutes is created to read:
AB237,4,3
120.875 (2) (r) Budget stabilization fund transfer for tax relief. A sum sufficient
2equal to the amount certified to the secretary of administration under s. 71.07 (7m)
3(d), to fund the tax credit under s. 71.07 (7m).
AB237, s. 6 4Section 6. 25.60 of the statutes is amended to read:
AB237,4,13 525.60 Budget stabilization fund. There is created a separate nonlapsible
6trust fund designated as the budget stabilization fund, consisting of moneys
7transferred to the fund from the general fund under s. 16.518 (3). Moneys in the
8budget stabilization fund may be used only for the purpose of providing state revenue
9stability during periods of below-normal economic activity when actual state
10revenues are lower than estimated revenues as provided in the summary, as defined
11in s. 16.518 (1), for the purpose of paying principal and interest on public debt
12contracted under subchs. I and IV of ch. 18, and for the purpose of the tax credit under
13s. 71.07 (7m).
AB237, s. 7 14Section 7. 71.07 (7m) of the statutes is created to read:
AB237,4,1615 71.07 (7m) Budget stabilization fund tax credit. (a) Definitions. In this
16subsection:
AB237,4,1817 1. "Claimant" means an individual taxpayer who is eligible for, and claims, the
18credit under sub. (9).
AB237,4,2119 2. "Credit percentage" means an amount calculated by the department by
20dividing the amount certified under par. (c) 1. by the sum of all projected claims under
21the credit under sub. (9) in the year to which the claim relates.
AB237,4,2522 (b) Filing claims. Subject to the limitations and conditions provided in this
23subsection, a claimant may claim as a credit against the tax imposed under s. 71.02,
24up to the amount of those taxes, an amount determined by the department under par.
25(c).
AB237,5,5
1(c) Determination of credit amount. 1. Not later than September 1 each year,
2the secretary of administration shall certify to the secretary of revenue the amount
3that is in the budget stabilization fund under s. 25.60 that exceeds 8% of the
4estimated expenditures from the general fund during the fiscal year, as reported in
5the summary, as defined in s. 16.518 (1).
AB237,5,76 2. If the amount of the certification is $100,000,000 or less, the amount that
7may be claimed in that taxable year is zero.
AB237,5,158 3. If the amount of the certification exceeds $100,000,000, the department shall
9determine the credit percentage for that taxable year. The credit amount shall be
10determined by multiplying the amount that a claimant claimed under the credit
11under sub. (9) by the credit percentage, but shall be modified so that the certified
12amount in the budget stabilization fund greater than 8% of the estimated
13expenditures from the general fund during the fiscal year, as reported in the
14summary, as defined in s. 16.518 (1), is expended as fully as possible and that the
15credit amount for each claimant is rounded down to the nearest whole dollar amount.
AB237,5,2016 (d) Certification of amounts claimed. No later than August 15 of the year
17following the year in which the department determines a credit amount under par.
18(c) 3., the department shall determine the amount of revenue lost because of credits
19claimed in the taxable year to which that credit amount relates. The amount of
20revenue lost shall be certified to the secretary of administration.
AB237,5,2221 (e) Limitations and conditions. 1. No credit may be allowed under this
22subsection unless it is claimed within the time period under s. 71.75 (2).
AB237,5,2423 2. Part-year residents and nonresidents of this state are not eligible for the
24credit under this subsection.
AB237,6,2
1(f) Administration. Subsection (9e) (d), to the extent that it applies to the credit
2under that subsection, applies to the credit under this subsection.
AB237, s. 8 3Section 8. 71.10 (4) (dt) of the statutes is created to read:
AB237,6,44 71.10 (4) (dt) Budget stabilization fund tax credit under s. 71.07 (7m).
AB237, s. 9 5Section 9. Initial applicability.
AB237,6,116 (1) Budget stabilization fund tax credit. The treatment of sections 71.07 (7m)
7and 71.10 (4) (dt) of the statutes first applies to taxable years beginning on January
81 of the year in which this subsection takes effect, except that if this subsection takes
9effect after July 31 the treatment of sections 71.07 (7m) and 71.10 (4) (dt) of the
10statutes first applies to taxable years beginning on January 1 of the year following
11the year in which this subsection takes effect.
AB237,6,1212 (End)
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