CHAPTER 411

FORMERLY SENATE SUBSTITUTE NO. 1

FOR

SENATE BILL NO. 535

AS AMENDED BY

SENATE AMENDMENT NOS. 1 & 2

AND

HOUSE AMENDMENT NO. 1

AN ACT TO AMEND CHAPTER 65, TITLE 29, DELAWARE CODE, TO PROVIDE A LIMITATION ON APPROPRIATIONS BY THE GENERAL ASSEMBLY.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 65, Title 29, Delaware Code, by adding thereto a new section to read as follows:

"§6532. Limitation on appropriations

(a) No appropriation, supplemental appropriation, or budget act shall cause the aggregate State General Fund appropriations enacted for any given fiscal year to exceed 98 percent of the estimated State General Fund revenue for such fiscal year from all sources, including estimated unencumbered funds remaining at the end of the previous fiscal year. An Act approved pursuant to the provisions of Article VIII, Section 3 of the Delaware Constitution of 1897 shall not be considered an appropriation for the purpose of this section. Estimated unencumbered funds are calculated by taking the estimated General Fund cash balance at the end of the fiscal year less estimated revenue anticipation bonds or notes, estimated encumbrances, estimated continuing appropriations and the amount of the Budget Reserve Fund as established in subsection (c) of this section at the end of said fiscal year. The amount of said revenue estimate and estimated unencumbered funds remaining shall be determined by the most recent joint resolution approved from time to time by a majority of the members elected to each House of the General Assembly and signed by the Governor.

(b) Notwithstanding subsection (a) of this section, any portion of the amount between 98 and 100 percent of the estimated State General Fund revenue for any fiscal year as estimated in accordance with subsection (a) of this section may be appropriated in any given fiscal year in the event of emergencies involving the health, safety, or welfare of the citizens of the State of Delaware, such appropriations to be approved by three-fifths of the members elected to each House of the General Assembly.

(c) There is hereby established a Budget Reserve Account within the General Fund. Within forty-five (45) days after the end of any fiscal year, the excess of any unencumbered funds remaining from the said fiscal year shall be paid by the Secretary of Finance into

the Budget Reserve Account; provided, however, that no such payment will be made which would increase the total of the Budget Reserve Account to more than five percent (5%) of only the estimated State General Fund revenues as set by the provisions of subsection (a)

of this section. The excess of any unencumbered funds shall be determined by subtracting from the actual unencumbered funds at

the end of any fiscal year an amount which together with the latest estimated General Fund revenues is necessary to fund the ensuing fiscal year's General Fund budget including the required estimated supplemental and automatic appropriation for said ensuing fiscal year less estimated reversions. The General Assembly by three-fifths vote of the members elected to each House may appropriate from the Budget Reserve Account such additional sums as may be necessary to fund any unanticipated deficit in any given fiscal year or to provide funds required as a result of any revenue reduction enacted by the General Assembly.

(d) For purposes of calculating the estimated cash balance as of June 30, 1978, the carry-over deficit from the fiscal year ending June 30, 1977, shall be assumed to be zero."

Section 2. If any provisions of this Act, or of any rule, regulation or order thereunder or the application of such provision to any person or circumstance, shall be invalid, the remainder of this Act and the application of such provisions of this Act or of such rule,

regulations or order to persons or circumstances other than those to which it is held invalid shall not be affected thereby.

Approved July 1, 1978.