SUMMARY:

This bill amends the method of appropriating funds for the Homeowner Tax Relief Grants (HTRG).

In general, this legislation provides the grant in FY 09 (current year budget), but thereafter shifts payment of the HTRG to the supplemental budget, and it would be triggered only if there is a 3 percent growth plus inflation when compared to a previous year when the HTRG was funded.  

REQUIREMENTS:

• For FY 2009, the General Assembly shall appropriate funds to provide homeowner tax relief grants to counties, municipalities, and school districts. 
•  If the amount appropriated is sufficient to fund the eligible assessed value stated in the General Appropriations Act, the grants may not be reduced or withdrawn for any reason. Current law specifies that the appropriation be not less than that specified in the FY 2004 Appropriations Act.   
• If the amount appropriated in the General Appropriations Act is insufficient to fund the eligible assessed values stated in the Act, the amount appropriated for homeowner tax relief grants may be adjusted.
• Beginning on July 1, 2009 (FY 2010), the General Assembly shall appropriate funds to provide homeowner tax relief grants to counties, municipalities and school districts and the supplemental appropriations bill shall specify the amount appropriated and the eligible assessed value of each qualified homestead in the state for the specified tax year. 
• If the amount appropriated in the General Appropriations Act is sufficient to fund the eligible assessed value stated in the General Appropriations Act, that amount shall not be reduced or withdrawn for any reason.  
• If the amount in the supplemental appropriations bill is insufficient to fund the eligible assessed value stated in the supplemental appropriations bill, the amount appropriated is authorized to be, but not required to be, adjusted in the General Appropriations Act for the next succeeding fiscal year.
• Beginning on July 1, 2009 (FY 2010), no funds shall be appropriated for homeowner tax relief grants in any supplemental appropriation bill or General Appropriations Act unless the estimated amount of total revenues available for distribution for the current fiscal year exceeds the amount of estimated total revenues available for distribution enumerated in the most recent fiscal year in which homeowner tax relief grants were appropriated by 3 percent plus the percent change in the rate of economic inflation on individual taxpayers as determined by the Consumer Price Index.
• Beginning on July 1, 2009 (FY 2010), in any fiscal year in which projected revenues on which appropriations are based exceed actual revenues and an appropriation for homeowner tax relief grants is made, the Governor shall require state agencies to reserve appropriations for budget reductions to be recommended to the General Assembly at its next regular session or (the Governor is) to withhold agency allotment requests for such appropriations as necessary to maintain spending within actual revenues.

POINTS TO CONSIDER:

• Ties future HTRG funding to a revenue growth of 3 percent plus inflation, and the appropriation will be made in the amended budget, thus assuring that future funding promises cannot be made unless the revenue is there to support them.
• Mandates funding for this year (FY 09) and thus ensures funding to school boards that have already built current budgets with the grant included.
• The mandate that state agencies not exceed actual revenue collections as compared to annual appropriations estimated should be a protection for school boards.
• The source of funding the HTRG in FY 09 will be important to school boards, and they will favor either 1) new sources of revenue and not merely switching around funds already allocated, or 2) enabling school boards to adjust budgets so that expenditures are sufficiently cut to cover the cost.

EFFECTIVE DATE:  Upon approval of the Governor or upon becoming law without such approval.