AGENDA ITEMS 13
Robert H. Drummer, Senior Legislative Attorney
Charles H. Sherer, Legislative Analyst
Resolution to Approve Reserve and Selected Fiscal Policies
Bill 36-10, Finance - Revenue Stabilization Fund Amendments
The Management and Fiscal Policy Committee recommendation (3-0):
adopt the Resolution
: and enact Bill 36-10 with amendments. The Committee plans to reconvene at 2:00 p.m. on
28 for a final review of these recommendations.
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. Management and Fiscal Policy Committee
(MFP) worksessions for both the Resolution and Bill were held on June 14 and June 24. A public
hearing was held on June 22. The MFP Committee plans to meet again on June 28.
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 of the target reserve?
Should the total reserve have a maximum size? If
what should it be?