Committee reviews Appropriations language to let Emergency Board use balance reserve for declared emergencies and federal funding changes

Budget staff and legislators reviewed draft changes to the Appropriations Act that would let the Emergency Board, with joint fiscal committee involvement, release money from the general fund balance reserve in response to declared emergencies or reductions in federal funding.

The staff presentation explained that the proposed amendment would add statutory authority allowing the Emergency Board to “unreserve this amount from the balance reserve, replenish spending authority if needed,” in the event of a declared emergency while the General Assembly is out of session, and would also create a process to respond when federal fund revenues fall below the amounts set in the Appropriations Act. Budget staff (Speaker 4) identified the July flood last year as an example of when such flexibility could let previously appropriated one-time funds be redeployed for recovery needs.

The draft defines “unduplicated appropriations” for government function units and establishes a tiered response depending on the size of a federal-fund reduction. For small changes the Secretary of Administration would notify the Joint Fiscal Committee (JFC); for larger reductions the Secretary must prepare expenditure-reduction and…