Briefing explains bond levy equalization closeout, transfers and governor's proposed transfers

Keith Bybee and committee staff reviewed the cash reconciliation section of the budget book and the set of transfers to other funds included in the governor's proposal.

Bybee told the committee that House Bill 521 (referenced during the presentation as H 521) closed the older bond levy equalization program and established a new state bonding structure for school facilities; he said the law directs the remaining bond levy equalization balance be transferred to the general fund. "There was existing cash in the bond levy equalization program, and because that program no longer exists, the law suggested specifically that that money would be brought back into the general fund," Bybee said.

Committee members asked about the size and timing of that transfer. Bybee said the closing balance on the old bond levy equalization account was about $62.8 million and that the state controller will transfer that amount to the general fund. He and other staff noted this is mainly a timing and structural change: the Legislature created a new bonding structure that will handle school facility debt differently and the remaining cash from the discontinued program flows back to the general fund per the statute.

Bybee also reviewed other transfers the governor proposed, including transfers for transportation projects that have driven much of the recent transfer activity, a proposed $60 million transfer to fire suppression deficiency warrants, and the mechanics of reappropriation and executive carryforward (obligations that cross fiscal years). He advised members to look at the cash reconciliation tables in the Special Reports folder on SharePoint for further details.

No formal actions were taken during the briefing; staff committed to follow up on timing and how the transferred funds interact with outstanding bonding obligations.