Specifies that moneys in this fund may only be used to increase any unreserved
balance of the general fund reported as a negative amount in the most recent CAFR.
The bill also creates a mechanism to address the worsening of the state's GAAP
deficit. In particular, the bill directs the governor, when the unreserved general fund
balance in the most recent CAFR is a larger negative amount than the unreserved
general fund balance reported in the CAFR for the previous year, to recommend
legislation to eliminate this increase.
Currently, the biennial state budget report prepared by the secretary of DOA under
the direction of the governor must contain a number of specified types of information,
including the effect of the recommendations in the biennial budget bill or bills on the
GAAP deficit. The bill clarifies this requirement by removing ambiguous text and
simplifying this requirement.
The bill creates two other provisions to provide the legislature additional
information on the effects of legislation on the state's general fund balance based on
GAAP. These provisions:

Direct the Legislative Fiscal Bureau to identify, where feasible,
recommendations in specified versions of a biennial budget bill that may have a
significant impact on the GAAP general fund balance.
Expand the fiscal estimate process to include an estimate of the effects of a bill,
other than an executive budget bill, on the GAAP general fund balance.
Effective Dates
In general, the bill takes effect on the day after publication. The expansion of the
fiscal estimate process in the bill takes effect nine months after publication. The transfer
by the bill of moneys in the general fund to the budget stabilization fund and the GAAP
deficit reduction fund and the duty of the governor to recommend legislation to address
any worsening of the GAAP deficit take effect on July 1, 2007.
SB144, s. 1 1Section 1. 13.093 (2) (a) of the statutes is amended to read:
SB144,4,62 13.093 (2) (a) Any bill making an appropriation, any bill increasing or
3decreasing existing appropriations or state or general local government fiscal
4liability or revenues, and any bill that modifies an existing surcharge or creates a
5new surcharge that is imposed under ch. 814, shall, before any vote is taken thereon
6by either house of the legislature if the bill is not referred to a standing committee,
7or before any public hearing is held before any standing committee or, if no public
8hearing is held, before any vote is taken by the committee, incorporate a reliable
9estimate of the anticipated change in appropriation authority or state or general
10local government fiscal liability or revenues under the bill, including to the extent
11possible the impact of such changes on the general fund balance in the most recently
12published comprehensive annual financial report, as defined in s. 16.002 (1g), and

13a projection of such changes in future biennia. For purposes of this paragraph, a bill
14increasing or decreasing the liability or revenues of the unemployment reserve fund
15is considered to increase or decrease state fiscal liability or revenues. Except as
16otherwise provided by joint rules of the legislature or this paragraph, such estimates
17shall be made by the department or agency administering the appropriation or fund
18or collecting the revenue. The joint survey committee on retirement systems shall
19prepare the fiscal estimate with respect to the provisions of any bill referred to it

1which create or modify any system for, or make any provision for, the retirement of
2or payment of pensions to public officers or employees. The director of state courts
3shall prepare the fiscal estimate with respect to the provisions of any bill that
4modifies an existing surcharge or creates a new surcharge that is imposed under ch.
5814. When a fiscal estimate is prepared after the bill has been introduced, it shall
6be printed and distributed as are amendments.
SB144, s. 2 7Section 2. 13.95 (1m) (c) of the statutes is created to read:
SB144,4,118 13.95 (1m) (c) The legislative fiscal bureau shall prepare a report identifying,
9where feasible, recommendations in each version of the biennial budget bill or bills
10that may have a significant impact on the general fund balance in the most recently
11published comprehensive annual financial report, as defined in s. 16.002 (1).
SB144, s. 3 12Section 3. 16.002 (1) of the statutes is renumbered 16.002 (1m).
SB144, s. 4 13Section 4. 16.002 (1g) of the statutes is created to read:
SB144,4,1514 16.002 (1g) "Comprehensive annual financial report" means a financial
15statement prepared under s. 16.40 (3m).
SB144, s. 5 16Section 5. 16.40 (3) (title) of the statutes is amended to read:
SB144,4,1717 16.40 (3) (title) Prepare budgetary basis annual financial statement.
SB144, s. 6 18Section 6. 16.40 (3m) of the statutes is created to read:
SB144,4,2319 16.40 (3m) Prepare annual financial statement based on generally accepted
20accounting principles.
Prepare at the end of each fiscal year not later than
21December 31, a financial statement for the state in accordance with generally
22accepted accounting principles as promulgated by the governmental accounting
23standards board.
SB144, s. 7 24Section 7. 16.46 (9) of the statutes is repealed and recreated to read:
SB144,5,3
116.46 (9) The estimated impact of the recommendations in the biennial budget
2bill or bills on the general fund balance in the most recently published comprehensive
3annual financial report.
SB144, s. 8 4Section 8. 16.50 (7) (b) of the statutes is amended to read:
SB144,5,145 16.50 (7) (b) Following such notification, the governor shall submit a bill
6containing his or her recommendations for correcting the imbalance between
7projected revenues and authorized expenditures, including, if the imbalance is
8caused by actual general fund revenues being 98 percent or less of estimated general
9fund revenues under s. 20.005 (1) as published in the biennial budget act or acts,
a
10recommendation as to whether moneys should be transferred from the budget
11stabilization fund to the general fund. If the legislature is not in a floorperiod at the
12time of the secretary's notification, the governor shall call a special session of the
13legislature to take up the matter of the projected revenue shortfall and the governor
14shall submit his or her bill for consideration at that session.
SB144, s. 9 15Section 9. 16.50 (8) of the statutes is created to read:
SB144,5,2116 16.50 (8) Deficit increase. (a) If following the publishing of any comprehensive
17annual financial report the secretary determines that the unreserved balance of the
18general fund in that report is a larger negative amount than the unreserved balance
19of the general fund in the comprehensive annual financial report for the previous
20fiscal year, the secretary shall immediately notify the governor, the presiding officers
21of each house of the legislature, and the joint committee on finance of the difference.
SB144,6,422 (b) Following such notification, the governor shall submit a bill containing his
23or her recommendations for eliminating the difference, so that the unreserved
24balance in the most recently published comprehensive annual financial report, as
25adjusted by the governor's recommendations, is no less than the unreserved balance

1in the comprehensive annual financial report for the previous fiscal year. If the
2comprehensive annual financial report that contains the larger negative unreserved
3balance was published in an even-numbered year, the governor may include his or
4her recommendations in an executive budget bill introduced under s. 16.47 (1m).
SB144, s. 10 5Section 10. 16.518 (title) of the statutes is amended to read:
SB144,6,8 616.518 (title) Transfers to the budget stabilization fund and the cash
7building projects
generally accepted accounting principles deficit
8reduction
fund.
SB144, s. 11 9Section 11. 16.518 (4) and (5) of the statutes are created to read:
SB144,6,1410 16.518 (4) (a) Subject to par. (b) and after making any transfer under sub. (3)
11or determining that no transfer is required under sub. (3), the secretary shall
12annually transfer from the general fund to the budget stabilization fund an amount
13equal to the amount of the general fund balance that is required under s. 20.003 (4)
14for that fiscal year.
SB144,6,1815 (b) If the balance of the budget stabilization fund on June 30 of the fiscal year
16is at least equal to 5 percent of the estimated expenditures from the general fund
17during the fiscal year, as reported in the summary, the secretary may not make the
18transfer under par. (a).
SB144,6,22 19(5) (a) Subject to par. (b), the secretary shall annually transfer from the general
20fund to the generally accepted accounting principles deficit reduction fund an
21amount equal to the amount of the general fund balance required under s. 20.003 (4)
22for that fiscal year.
SB144,6,2423 (b) 1. The secretary may not make the transfer under par. (a) in a fiscal year if
24the secretary made a transfer in the fiscal year under sub. (4).
SB144,7,3
12. If the unreserved balance of the general fund in the comprehensive annual
2financial report for the previous fiscal year is at least $0, the secretary may not make
3the transfer under par. (a).
SB144, s. 12 4Section 12. 20.005 (3) (schedule) of the statutes: at the appropriate place,
5insert the following amounts for the purposes indicated: - See PDF for table PDF
SB144, s. 13 6Section 13. 20.875 (1) (a) of the statutes is amended to read:
SB144,7,87 20.875 (1) (a) General fund transfer. A sum sufficient equal to the amount that
8is required to be transferred under s. 16.518 (3) and (4).
SB144, s. 14 9Section 14. 20.877 of the statutes is created to read:
SB144,7,12 1020.877 Generally accepted accounting principles deficit reduction
11fund.
(1) Transfers to fund. There is appropriated to the generally accepted
12accounting principles deficit reduction fund:
SB144,7,1413 (a) General fund transfer. A sum sufficient equal to the amount that is required
14to be transferred under s. 16.518 (5).
SB144,7,16 15(2) Transfers from fund. There is appropriated from the generally accepted
16accounting principles deficit reduction fund to the general fund:
SB144,8,2
1(a) Generally accepted accounting principles deficit reduction fund transfer.
2The amounts in the schedule to be transferred no later than October 15 of each year.
SB144, s. 15 3Section 15. 25.17 (1) (fr) of the statutes is created to read:
SB144,8,54 25.17 (1) (fr) Generally accepted accounting principles deficit reduction fund.
5(s. 25.64).
SB144, s. 16 6Section 16. 25.60 of the statutes is amended to read:
SB144,8,14 725.60 Budget stabilization fund. There is created a separate nonlapsible
8trust fund designated as the budget stabilization fund, consisting of moneys
9transferred to the fund from the general fund under ss. 13.48 (14) (c), 16.518 (3) and
10(4)
, and 16.72 (4) (b). Moneys in this fund are reserved for a transfer from the fund
11to the general fund to provide state revenue stability during periods of below-normal
12economic activity when actual general fund revenues are 98 percent or less of
13estimated general fund revenues under s. 20.005 (1), as published in the biennial
14budget act or acts.
SB144, s. 17 15Section 17. 25.64 of the statutes is created to read:
SB144,8,22 1625.64 Generally accepted accounting principles deficit reduction
17fund.
There is created a separate nonlapsible trust fund designated as the generally
18accepted accounting principles deficit reduction fund, consisting of moneys
19transferred to the fund from the general fund under s. 16.518 (5). Moneys in this fund
20are reserved to increase any unreserved balance of the general fund reported as a
21negative amount in the most recent comprehensive annual financial report, as
22defined in s. 16.002 (1g).
SB144, s. 18 23Section 18. Effective dates.
SB144,8,2424 (1) This act takes effect on the day after publication, except as follows:
SB144,9,2
1(a) The treatment of section 13.093 (2) (a) of the statutes takes effect on the first
2day of the 9th month beginning after publication.
SB144,9,53 (b) The treatment of section 20.875 (1) (a) of the statutes and the creation of
4sections 16.50 (8), 16.518 (4) and (5), and 20.877 (1) (a) of the statutes take effect on
5July 1, 2007.
SB144,9,66 (End)
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