This will improve fiscal efficiency by reclaiming unused or obsolete state funds and increasing transparency over inactive cash funds.
Automatic Transfers from Repealed Cash Funds
Starting June 30, 2025, and annually thereafter, the Office of the State Controller must:
Transfer the remaining balance of any repealed cash fund into the General Fund, unless another law provides otherwise.
This ensures that leftover money from defunct or obsolete programs is returned to support general state spending.
Annual Report to the Joint Budget Committee The Controller must submit a report each year that includes:
A list of dormant funds:
Identifies any cash funds that have had no appropriations in the past two fiscal years.
Provides the current balance of those unused funds.
Total recovered funds:
Summarizes the total amount of money transferred to the General Fund from repealed cash funds.
Overall Effect
Promotes efficient management of state money.
Helps prevent public funds from sitting idle in accounts for defunct programs.
Improves legislative oversight and budget planning by requiring annual disclosure of dormant or recovered fund balances.
Summary
Joint Budget Committee. The bill requires the office of the state
controller (office) to transfer, unless otherwise provided, on June 30, 2025, and each June 30 thereafter, the balance of any repealed cash fund to the general fund. The bill requires the office to annually submit a report to the joint budget committee that:
•
Identifies any funds that have not been appropriated from in the last 2 state fiscal years and the balance of those funds; and •
Identifies the total amount that the office has transferred to the general fund from repealed cash funds.
