MISSISSIPPI LEGISLATURE
2005 5th Extraordinary Session
To: Appropriations
By: Senator(s) Gordon, Little, Burton, Dawkins, Frazier, Gollott, Jackson (11th), Jackson (32nd), Jordan, Walls
AN ACT TO AMEND SECTION 31-17-123, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF THE STATE FISCAL OFFICER AND THE STATE TREASURER MAKE A DETERMINATION THAT STATE-SOURCE SPECIAL FUNDS ARE NOT SUFFICIENT TO COVER DEFICIENCIES IN THE GENERAL FUND, THAT THE STATE OF MISSISSIPPI IS UNABLE TO REPAY SPECIAL FUND BORROWING WITHIN THE FISCAL YEAR IN WHICH THE BORROWING WAS DONE OR THAT THE STATE SOURCE FUNDS ARE INSUFFICIENT FOR DISASTER SUPPORT OR ASSISTANCE PURPOSES DUE TO HURRICANES KATRINA AND RITA, AND THAT THE STATE BOND COMMISSION MAKES A DETERMINATION THAT SUCH DEFICIENCY OR INABILITY TO REPAY OR INSUFFICIENCY IS THE RESULT OF A STATE OF EMERGENCY WITHIN THE STATE OF MISSISSIPPI, THE STATE BOND COMMISSION IS AUTHORIZED TO OBTAIN A LINE OF CREDIT, IN AN AMOUNT NOT TO EXCEED $500,000,000.00, FROM A COMMERCIAL LENDER, INVESTMENT BANKING GROUP OR A CONSORTIUM OF EITHER OR BOTH; TO PROVIDE THAT THE LENGTH OF SUCH INDEBTEDNESS SHALL NOT EXTEND BEYOND THREE YEARS FOLLOWING THE ORIGINATION OF THE LINE OF CREDIT; TO PROVIDE THAT SUCH LINE OF CREDIT SHALL BE AUTHORIZED AND APPROVED BY THE STATE BOND COMMISSION AND HAVE SUCH TERMS AND DETAILS AS PROVIDED BY RESOLUTION OF THE STATE BOND COMMISSION; TO PROVIDE THAT SUCH PROCEEDS SHALL BE RECEIVED BY THE STATE TREASURER AND DEPOSITED INTO THE DISASTER RECOVERY FUND AND USED TO COVER DEFICIENCIES IN THE GENERAL FUND, TO REPAY SPECIAL FUND BORROWING AND/OR TO COVER ANY INSUFFICIENCY IN DISASTER SUPPORT OR ASSISTANCE; TO ESTABLISH A DISASTER RECOVERY FUND FOR SUCH PURPOSE; TO PROVIDE THAT UPON THE APPROVAL OF THE STATE FISCAL OFFICER, THE DIRECTOR OF THE MISSISSIPPI EMERGENCY MANAGEMENT AGENCY MAY USE FUNDS FROM THE LINE OF CREDIT TO MATCH FEDERAL FUNDS AND FOR PERSONNEL RELATED EXPENSES DUE TO THE HURRICANE KATRINA AND/OR HURRICANE RITA DISASTERS; TO AMEND SECTION 27-104-13, MISSISSIPPI CODE OF 1972, TO SUSPEND UNTIL JULY 1, 2006, THE REQUIREMENT FOR THE STATE FISCAL OFFICER TO REDUCE ALLOCATIONS OF GENERAL FUNDS AND STATE-SOURCE SPECIAL FUNDS TO STATE AGENCIES WHEN GENERAL FUND REVENUES RECEIVED FOR THE FISCAL YEAR FALL BELOW 98% OF THE SINE DIE GENERAL FUND REVENUE ESTIMATE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 31-17-123, Mississippi Code of 1972, is amended as follows:
31-17-123. (1) The intent of the Legislature is to authorize borrowing funds under the provisions of Sections 31-17-101 through 31-17-123 to offset any temporary cash flow deficiencies and should not be construed to authorize the borrowing of any funds in an amount that cannot be repaid during the fiscal year in which the funds are borrowed.
(2) (a) Notwithstanding any provision of this chapter to the contrary, in the event that the State Fiscal Officer and the State Treasurer make a determination that (i) state-source special funds are not sufficient to cover deficiencies in the General Fund, (ii) the State of Mississippi is unable to repay special fund borrowing within the fiscal year in which it was borrowed, or (iii) state-source funds are insufficient for disaster support and/or assistance purposes due to Hurricanes Katrina and/or Rita; and that the State Bond Commission makes a determination that such deficiency, inability to repay, or insufficiency is the result of a state of emergency within the State of Mississippi, the State Bond Commission is authorized to obtain a line of credit, in an amount not to exceed Five Hundred Million Dollars ($500,000,000.00), from a commercial lender, investment banking group or a consortium of either, or both. The length of indebtedness under this subsection shall not extend past three (3) years following the origination of the line of credit. The line of credit shall be authorized and approved by the State Bond Commission and shall have such terms and details as may be provided by resolution of the State Bond Commission. Loan proceeds shall be received and disbursed by the State Treasurer and deposited into the Disaster Recovery Fund, a special fund hereby created in the State Treasury, and shall be used to cover deficiencies in the General Fund, to repay special fund borrowing and/or to cover any insufficiency in disaster support and/or assistance. Monies remaining in the Disaster Recovery Fund at the end of a fiscal year shall not lapse into the State General Fund, but shall remain in the Disaster Recovery Fund.
(b) As security for the repayment of the principal and interest on the line of credit provided for in paragraph (a) of this subsection, the full faith, credit and resources of the State of Mississippi are hereby irrevocably pledged.
(c) Upon approval of the State Fiscal Officer, the Director of the Mississippi Emergency Management Agency is authorized to use amounts from the line of credit to match federal funds, and for personnel, call-back wages, base and overtime wages, travel, per diem and other out-of-pocket expenses incurred as a result of Hurricanes Katrina and/or Rita.
(d) This subsection (2) shall be complete authority for the borrowing authorized hereunder and shall not be subject to the limitations provided in the other provisions of this chapter or otherwise under state law.
(e) The State Treasurer shall notify the Legislative Budget Office and the State Department of Finance and Administration of each transfer into and out of the Disaster Recovery Fund on a quarterly basis.
SECTION 2. Section 27-104-13, Mississippi Code of 1972, is amended as follows:
27-104-13. (1) The State Fiscal Officer may disapprove or reduce and revise the estimates of general funds and state-source special funds for any general fund or special fund agency and for the "administration and other expenses" budget of the Mississippi Department of Transportation, in an amount not to exceed five percent (5%), if at any time he finds that funds will not be available within the period for which the budget is drawn, or if at any time he finds that the requested expenditures, or any part thereof, are not authorized by law, and that action shall be reported to the Legislative Budget Office.
The State Fiscal Officer may, upon his determination of need based upon a finding that funds will not be available within the period for which the budget is drawn, transfer funds as provided in Section 27-103-203, from the Working Cash-Stabilization Reserve Fund to the General Fund to supplement the general fund revenue. If the estimates of general funds and state-source special funds of all general fund and special fund agencies and of the "administration and other expenses" budget of the Mississippi Department of Transportation have been reduced by five percent (5%), additional reductions may be made, but shall consist of a uniform percentage reduction of general funds and state-source special funds to all general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation.
Any state-source special funds reduced under the provisions of this subsection (1) shall be transferred to the State General Fund upon requisitions for warrants signed by the respective agency head, and the transfer shall be made within a reasonable period to be determined by the State Fiscal Officer.
(2) The State Tax Commission and University Research Center, utilizing all available revenue forecast data, shall annually develop a general fund revenue estimate to be adopted by the Legislative Budget Office as of the date of sine die adjournment. If, at the end of October, or at the end of any month thereafter of any fiscal year, the revenues received for the fiscal year fall below ninety-eight percent (98%) of the Legislative Budget Office general fund revenue estimate at the date of sine die adjournment, the State Fiscal Officer shall reduce allocations of general funds and state-source special funds to general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation, in an amount necessary to keep expenditures within the sum of actual general fund receipts, including any transfers to the General Fund from the Working Cash-Stabilization Reserve Fund for the fiscal year.
The State Fiscal Officer may, upon his determination of need based on the revenue shortfall, transfer funds as provided in Section 27-103-203 from the Working Cash-Stabilization Reserve Fund to the General Fund to supplement the general fund revenue. State-source special funds in an amount equal to any reduction made under the provisions of this subsection (2) shall be transferred to the State General Fund upon requisitions for warrants signed by the respective agency head, and the transfer shall be made within a reasonable period to be determined by the State Fiscal Officer.
No agency's allocation shall be reduced in an amount to exceed five percent (5%); however, if the allocations of general funds and state-source special funds to all general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation have been reduced by five percent (5%), any additional reductions required to be made under this subsection (2) shall consist of a uniform percentage reduction of general funds and state-source special funds to all general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation. Any receipt from loans authorized by Sections 31-17-101 through 31-17-123 shall not be included as revenue receipts.
The State Fiscal Officer shall immediately send notice of any action taken under authority of this subsection (2) to the Legislative Budget Office.
The provisions of this subsection (2) requiring the State Fiscal Officer to reduce allocations of general funds and state-source special funds to general fund and special fund agencies and to the "administration and other expenses" budget of the Mississippi Department of Transportation shall be suspended during the period from the effective date of this act through June 30, 2006.
(3) For the purpose of this section, the term "state-source special funds"means any special funds in any agency derived from any source, but shall not include the following special funds: special funds derived from federal sources, from local or regional political subdivisions, from agricultural commodity assessments, or from donations; special funds held in a fiduciary capacity for the benefit of specific persons or classes of persons; self-generated special funds of the state institutions of higher learning or the state community or junior colleges; special funds of Mississippi Industries for the Blind, the State Port at Gulfport, Yellow Creek Inland Port, Pat Harrison Waterway District, Pearl River Basin Development District, Pearl River Valley Water Management District, Tombigbee River Valley Water Management District, Yellow Creek Watershed Authority, or Coast Coliseum Commission; special funds of the Department of Wildlife, Fisheries and Parks derived from the issuance of hunting or fishing licenses; and special funds generated by agencies whose primary function includes the establishment of standards and the issuance of licenses for the practice of a profession within the State of Mississippi.
SECTION 3. This act shall take effect and be in force from and after its passage.