Bill No.: SF0053                  Drafter:  DKG

LSO No.:  08LSO-0317              Effective Date:  3/15/2008

Enrolled Act No.:  SEA0033

Chapter No.:

Prime Sponsor:     Joint Appropriations Interim Committee

Catch Title:       Common school reserve account funding.

Subject:  Funding for the common school reserve account.

Summary/Major Elements:

· Current law establishes a spending policy amount for earnings from the permanent mineral trust fund and the common school account in the permanent land fund.  To the extent earnings exceed the spending policy amounts, the excess is deposited to a reserve account for each fund.  Once the reserve account reaches 75% of the spending policy amount for the respective fund, the excess flows to the appropriate corpus.

· Currently the common school reserve account funding described above is through the general fund.

· This act changes the funding of the common school reserve account from general funds to the stream of federal mineral royalties in excess of $200 million each year.  (These FMRs would otherwise flow to the school foundation program account.)

· For the current fiscal year the act provides a general fund appropriation to the school foundation program account of the lesser of the amount of funds distributed to the common school reserve account under the act or $56,514,455 (the projected amount of that flow).