Relating to the home ownership assistance program, and making an appropriation

Presentado por el comité Appropriations (successor To Ssb 3168) del Senado

Temas:State budget

La misma legislación: SSB 3168, SF 2307

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Dónde está ahora

Hecho: Presentado18 de febrero de 2020
Hecho: Subcomité26 de febrero de 2020
Hecho: Comité del Senado18 de febrero de 2020
Se detuvo: Lo aprueba el SenadoMurió al terminar la Asamblea General
Sigue: Comité de la Cámara
Sigue: Lo aprueba la Cámara
Sigue: A gobernador(a)
Sigue: Firmado como ley

Murió al terminar la sesión La sesión de 2020 terminó el 14 de junio de 2020, la última sesión ordinaria de la Asamblea General. Los proyectos que no pasaron por ambas cámaras murieron. ¿Qué es el embudo (funnel)?

Qué contiene

La explicación oficial está en inglés; todavía no hay resumen en palabras sencillas.

This bill provides that moneys appropriated to the veterans affairs commission from the veterans trust fund in a fiscal year that remain unobligated or unexpended at the close of the fiscal year shall not revert to the trust fund but shall be appropriated to the Iowa finance authority to provide grants to veterans to participate in the home ownership assistance program established under Code section 16.54.

Texto completo del proyecto (en inglés)¹

Nota fiscal

Resumen con IA This bill transfers any leftover money from the Veterans Trust Fund to the Iowa Finance Authority to support the Veterans Home Ownership Program. It is estimated to result in an appropriation of $785,000 to the program in fiscal year 2021. For fiscal year 2022 and beyond, an estimated $240,000 could be transferred to the program. (en inglés)²

Lea la nota fiscal (en inglés)

Description

Senate File 2307 amends the Veterans Trust Fund (VTF) to appropriate any unobligated or unexpended funds from the spendable portion of the VTF at the end of the fiscal year to the Iowa Finance Authority for the Veterans Home Ownership Program in the succeeding fiscal year.

Background

The Veterans Home Ownership Program provides a $5,000 grant to a service member for a down payment and closing costs toward the purchase of a new home in the State of Iowa. Iowa Code section 35A.13(4)(a) appropriates $500,000 from the Lottery Fund transfer of $2.5 million to the VTF, and any interest earned on the VTF to the Commission for services specified in Iowa Code section 35A.13(6). The appropriation requires that funds unexpended or unobligated at the end of the fiscal year revert to the VTF.

Assumptions

The full amount of the lottery transfer is spent annually on services. Once that amount is spent, the Commission then spends the interest earned.
Monthly reports and the State accounting system indicate that the interest has not reverted to the principal of the VTF and has remained in the spendable portion of the Fund to be spent on awards in succeeding fiscal years. Approximately $568,000 of interest income was brought forward into FY 2020.
The VTF has earned $279,000 in interest income through the first seven months of FY 2020. There will likely be another $200,000 earned by the end of FY 2020.
The Commission has not yet made any awards from the interest in the VTF in FY 2020. Based on previous fiscal year averages, an estimated $262,000 will be awarded from the interest in FY 2020.

Fiscal Impact

Senate File 2307 will result in the appropriation of an estimated $785,000 from the VTF to the Home Ownership Assistance Program in FY 2021.

Due to the variability of interest earned on the VTF, and the practice of retaining interest earned each fiscal year, increasing the spending power from the VTF, estimating a future appropriation to the Home Ownership Assistance Program is difficult. For FY 2022 and years thereafter, based on three-year averages of spending and interest, an estimated $240,000 could be transferred.