June 24, 2010
Management and Fiscal Policy Committee
Robert H. Drummer, Senior Legislative
Charles H. Sherer, Legislative Analyst
Resolution to Approve Reserve and Selected Fiscal Policies
Bill 36-10, Finance - Revenue Stabilization Fund - Amendments
A Resolution to Approve Reserve and Selected Fiscal Policies and Bill 36-10, Finance
Revenue Stabilization Fund Amendments, both sponsored by the Council President at the request of
the County Executive, were introduced on May 27, 2010. A Management and Fiscal Policy
Committee (MFP) worksession for both the Resolution and Bill was held on June 14. A public
hearing was held on June
The Resolution would establish a goal of a structurally balanced budget where only recurring
revenue is used to fund recurring expenses. The Resolution would also gradually increase the target
total reserve over the next 9 years and thereby reduce the revenue available for agency spending. Bill
36-10 would amend the law governing the Revenue Stabilization Fund consistent with the proposed
new fiscal policies governing the reserve. The Bill would modify the method of determining the
mandatory annual contribution to the Fund and remove the current cap on the Fund.
The major policy issues are:
Should the Council adopt a policy goal of a structurally balanced budget?
Should the Council modify the method of calculating the total reserve?
Should the Council modify the amount ofthe target reserve?
Should the total reserve have a maximum size? If so, what should it be?
Should the Revenue Stabilization Fund continue to have a maximum size? If so, what should