Relating to the use of moneys in the Iowa economic emergency fund, and including effective date provisions

This bill relates to the use of moneys in the Iowa economic emergency fund. Currently, moneys in the Iowa economic emergency fund may be used for cash flow purposes, provided that any moneys so allocated are returned to the fund by the end of that fiscal year. The bill requires an executive order by the governor in order to use the moneys in the fund for cash flow purposes. Currently, an appropriation from the Iowa economic emergency fund to the general fund is authorized for purposes of reducing or preventing an overdraft on or deficit in the general fund. The amount of the appropriation is the amount used from the Iowa economic emergency fund for cash flow purposes and that was not returned to the fund by the end of the fiscal year, not to exceed percent of the adjusted revenue estimate for the fiscal year for which the appropriation is made. There are two conditions that must be met before the appropriation can be made. First, prior to the appropriation, the balance of the general fund at the end of the fiscal year for which the appropriation is made is negative. Second, the governor issues an official proclamation and notifies the legislative fiscal committee and the legislative services agency that the balance of the general fund is negative and that the appropriation made brings the general fund into balance. The bill provides instead that moneys in the Iowa economic emergency fund may be used to prevent or reduce an overdraft on or deficit in the general fund, upon executive order by the governor, in an amount not to exceed percent of the adjusted revenue estimate for the fiscal year for which the moneys are spent. The bill prohibits moneys in the fund from being used for this purpose until the governor issues an official proclamation and notifies the legislative fiscal committee and the legislative services agency that the balance of the general fund is negative and that an appropriation from the Iowa economic emergency fund brings the general fund into balance or reduces the deficit in the general fund. The bill takes effect upon enactment.