CHAPTER 509

FORMERLY

SENATE SUBSTITUTE NO. 1

FOR

SENATE BILL NO. 536

AS AMENDED BY

SENATE AMENDMENT NOS. 1, 2, 3, 4

AND

HOUSE AMENDMENT NO. 1

AN ACT PROPOSING AN AMENDMENT TO ARTICLE 8, SECTION 6, OF THE CONSTITUTION OF THE STATE OF DELAWARE BY LIMITING APPROPRIATIONS TO 98 PERCENT OF THE STATE REVENUE.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all the members elected to each House thereof concurring therein):

Section 1. Amend Article 8, Section 6 of the Constitution of 1897 of the State of Delaware by designating the existing

paragraph thereof as subsection (a) and inserting new subsections to read as follows:

"(b) No appropratton, 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 Section 3 of this Article 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 encumberances, estimated continuing appropriations and the amount of the Budget Reserve Account as established in subsection (d) 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.

(c) Notwithstanding subsection (b) 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 (b) 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.

(d) 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 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 (b) 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 revenues is necessary to fund the ensuing fiscal year's General Fund Budget including the required estimated General Fund supplemental and automatic appropriations for said ensuing fiscal year less estimated reversions. The General Assembly by a 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."

Approved July 12, 1978.