Appropriations Committee votes to repeal Budget Reserve Account and fold balance into general fund

Senator Hicks presented Senate File 168 to the House Appropriations Committee and the panel voted to repeal the statutory Budget Reserve Account and move its operations and balances into the general fund.

Senate File 168 removes the separate statutory designation of the Budget Reserve Account — a savings account historically used as an intermediate “rainy day” or secondary checking account for general fund operations — and makes conforming amendments so the funds and statutory references move into the general fund structure. Senator Hicks told the committee the change is primarily a simplification and transparency measure: revenues that now flow into the reserve account (including federal mineral royalties and severance taxes) would instead be shown and maintained within the general fund.

Committee members discussed the mechanics and oversight implications and a sponsor coauthor affirmed that the bill preserves the current 5% reserve language in a clarified form for the general fund. Senator Garew, who worked with the sponsor on the measure, said the change is intended to streamline accounting and reduce legacy statutory language. There was no public opposition in the hearing.

Representative Aleman moved the bill for passage; Representative Sherwood seconded. The measure passed on a roll-call vote with six members voting aye, one excused. Committee staff recorded the roll as: Aleman — Aye; Angelos — Aye; Harrelson — Aye; Pendergraft — Aye; Sherwood — Aye; Smith — Excused; Chairman Bair — Aye. The committee advanced the bill to the next stage of consideration.

Ending

The committee's approval sends SF 168 to the full House with the result that the budget reserve account would be repealed if the Legislature enacts the bill; funds now routed into that account would remain in the general fund under revised statutory language.