A bill meant to ease future budget crises goes to the governor.
State senators passed a measure setting up a revenue stabilization fund, which socks away extra gross production and corporate income taxes in good years for withdrawal during revenue failures or ahead of down years.
Sen. David Holt said lawmakers are often criticized for a lack of long-term planning.
"This is definitely an instance where we can meet that criticism with some of the greatest forethought, I think, we've produced here in a long time," Holt said. "This is something that, for decades to come, our successors will quite possibly — they won't know our names, but they'll be very grateful to us."
For money to go into the fund, state revenue must exceed February 2014 certified levels.
"Every year, we talk about how we run low on funds and how gross production tax really has a negative impact on our budget, our core services," said Sen. Rob Standridge. "And I think we should definitely pass this in a year where we can't use it for a year when we may need it."
In the event of a revenue failure or certified revenue estimates falling below current fiscal year levels, up to one-fourth of the fund balance may be withdrawn to stave off cuts.
"If it had been in place for the last 20 years, we would have had a couple hundred million dollars this year to help with our budget shortfall," Holt said. "I think most of us would wish that, that number was even higher."
The bill passed 42–2. Sen. Charles Wyrick said he voted no because he wanted a cap on fund collections.
