§ 615A. Budget stabilization.

(a)

Creation and Purpose. The Budget Stabilization Account is established to retain revenues for future use to be used to maintain a consistent level of service without requiring a substantial tax increase if estimated revenues decline substantially during the course of the budget year.

(b)

Non-Lapse. Appropriations to the Budget Stabilization Account are not subject to the lapse provisions of Section 611 of the Charter.

(c)

Appropriations to the Budget Stabilization Account. Except as provided in subsection (e), any estimated surplus and any unbudgeted surplus shall be appropriated to the Budget Stabilization Account. Other revenues may be appropriated to the Budget Stabilization Account if the Executive includes such an appropriation in the proposed budget and if it is approved by the County Council pursuant to Section 606 of the Charter.

(d)

Conditions Under Which Appropriations Are Not Required To Be Made. The appropriations otherwise required by subsection (d) are not required to be made if either of the following conditions exists:

(1)

At the time the budget is adopted for the ensuing fiscal year, the amount of funds in the Budget Stabilization Account equals or exceeds 7% of the total general fund expenditures for the last completed fiscal year, as determined by audit; or

(2)

During the current fiscal year, funds have been or are being transferred from the Budget Stabilization Account to the General fund revenues in the current expense budget pursuant to subsection (f).

(e)

Use of Budget Stabilization Account. Funds appropriated in the Budget Stabilization Account may be transferred from the Budget Stabilization Account to the general fund revenues in the current expense budget under the following conditions and pursuant to the following procedure:

(1)

Conditions. Funds appropriated in the Budget Stabilization Account may be used only for:

(i)

Emergencies, pursuant to 610(b) of the Charter; or

(ii)

At such time as the County Executive determines that both the following conditions exist:

a.

Revenues for the current fiscal year are anticipated to be substantially below the revenue included in the current fiscal year's budget; and

b.

Reasonable reductions in expenditures will not be sufficient to offset the anticipated revenue shortfall.

(2)

Procedure. Provided that the conditions in paragraph (1) are met, the County Executive may transfer funds from the Budget Stabilization Account to the general fund revenues in the current expense budget by an ordinance enacted pursuant to this subsection which amends the Annual Budget and Appropriation Ordinance. A bill to amend the Budget Ordinance shall be introduced by the County Council at the request of the County Executive. The County Council may decrease the amount to be transferred from the Budget Stabilization Account but may not increase it. The ordinance amending the Budget Ordinance shall be adopted by the affirmative vote of a majority of the members of the County Council, shall be exempt from the Executive Veto, shall take effect from the date of enactment, and shall not be subject to referendum.

(f)

Precedence. The provisions of this section of the Charter concerning the Budget Stabilization Account shall supersede any inconsistent provisions of the Charter.

Editor's note

An amendment adding § 615A proposed by Res. No. 166, 1991 was approved at an election held Nov. 3, 1992, and became effective Dec. 3, 1992. An amendment to subsection (a)(3) and (4) proposed by Res. No. 119, 1996 was approved at an election held Nov. 5, 1996, and became effective Dec. 5, 1996. An amendment to § 615A proposed by Res. No. 100, 2012 was approved at an election held on Nov. 6, 2012, and became effective on Dec. 6, 2012.