SB398
To Amend The Law Concerning The Transfer Of Remaining General Revenues; And To Transfer A Portion Of Remaining General Revenues To The Municipal Aid Fund.
Last Action (May 1, 2023): Sine Die adjournment
Sponsors
AI-Generated Summary
Senate Bill 398 amends Arkansas state law concerning the distribution of surplus general revenues. The bill mandates that 10% of any remaining general revenues, following specified primary distributions, be transferred to the Municipal Aid Fund. The remaining 90% of those surplus funds are to be transferred to the General Revenue Allotment Reserve Fund on the last business day of each month. The legislation effectively earmarks a specific portion of the state's year-end or monthly surplus for municipal financial support. This change modifies the existing waterfall structure for the allocation of excess state general revenue funds.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are municipalities across Arkansas. By directing a fixed 10% of remaining general revenues into the Municipal Aid Fund, these local government entities receive an additional, recurring source of state funding that can be used for general municipal purposes as dictated by existing law.
Who Might Suffer?
The primary entity negatively impacted is the General Revenue Allotment Reserve Fund. Because a portion of remaining revenues is now diverted to the Municipal Aid Fund before reaching the Reserve Fund, the amount of money available for other state-level purposes, emergency reserves, or various budgetary allotments supported by the Reserve Fund will be reduced.
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