(a) The following terms, as used in this section, shall be defined as follows:
(1) “Appropriation” shall include automatic appropriations and continuing appropriations. An automatic appropriation shall be deemed made when any of the funds so appropriated are expended. A continuing appropriation shall be deemed made on the effective date of the first expenditure of funds so appropriated, notwithstanding the fact that the appropriation may be made continuing by virtue of a later act preventing the reversion of the appropriation.
(2) “Automatic appropriation” shall mean an appropriation which specifies no fixed dollar maximum amount, that amount being determined upon the occurrence of a stated future condition.
(3) “Budget Act” shall mean the Budget Appropriation Bill duly enacted according to §§ 6335 through 6338 of this title, approved by the Governor, and any amendatory legislation.
(4) “Budget Reserve Account” as used in subsection (b) of this section shall mean the Budget Reserve Account as of the close of the fiscal year next preceding the year in which the appropriation, supplemental appropriation or Budget Act described in that subsection is enacted.
(5) “Continuing appropriation” shall mean the unencumbered balance of any General Fund appropriation which, once established, is automatically renewed in any succeeding fiscal year without further legislative action.
(6) “General Fund” shall be as defined in § 6102 of this title.
(7) “Revenue anticipation bonds or notes” shall mean notes or bonds issued by the State in anticipation of the receipt by the State of taxes and revenues payable to the State and to the payment of which the State has pledged its full faith and credit, to the extent that the proceeds of such bonds or notes are deposited in the General Fund.
(8) “Supplemental appropriation” shall mean an appropriation provided by a Supplementary Appropriation Bill pursuant to § 6339 of this title.
(b) No appropriation, supplemental appropriation or budget act shall cause the aggregate General Fund appropriations enacted for any given fiscal year to exceed 98 percent of the estimated General Fund revenue for such fiscal year from all sources, including estimated unencumbered funds remaining at the end of the previous fiscal year. An act approved pursuant to Article VIII, § 3 of the Delaware Constitution of 1897, shall not be considered an appropriation for the purpose of this section. Estimated unencumbered funds are calculated by taking the estimated General Fund cash balance at the end of the fiscal year less estimated revenue anticipation bonds or notes, estimated encumbrances, estimated continuing appropriations and the amount of the Budget Reserve Fund as established in subsection (d) of this section at the end of said fiscal year. The amount of said revenue estimate and estimated unencumbered funds remaining shall be determined by the most recent joint resolution approved from time to time by a majority of the members elected to each House of the General Assembly and signed by the Governor.
(c) Notwithstanding subsection (b) of this section, any portion of the amount between 98 and 100 percent of the estimated General Fund revenue for any fiscal year as estimated in accordance with subsection (b) of this section may be appropriated in any given fiscal year in the event of emergencies involving the health, safety or welfare of the citizens of the State, such appropriations to be approved by3/5of the members elected to each House of the General Assembly.
(d) There is hereby established a Budget Reserve Account within the General Fund. Within 45 days after the end of any fiscal year, the excess of any unencumbered funds remaining from the said fiscal year shall be paid by the Secretary of Finance into the Budget Reserve Account; provided, however, that no such payment will be made which would increase the total of the Budget Reserve Account to more than 5 percent of only the estimated General Fund revenues as set by subsection (b) of this section. The excess of any unencumbered funds shall be determined by subtracting from the actual unencumbered funds at the end of any fiscal year an amount which together with the latest estimated General Fund revenues is necessary to fund the ensuing fiscal year’s General Fund budget including the required estimated supplemental and automatic appropriation for said ensuing fiscal year less estimated reversions. The General Assembly by three-fifths vote of the members elected to each House may appropriate from the Budget Reserve Account such additional sums as may be necessary to fund any unanticipated deficit in any given fiscal year or to provide funds required as a result of any revenue reduction enacted by the General Assembly.
(e) There is hereby established a Revenue Refund Account within the Office of the State Treasurer. Prior to depositing receipts and moneys of this State to the credit of the State Treasurer in the General Fund, the State Treasurer and the Secretary of Finance shall determine the appropriate refund amounts by major categories and pay same into the Revenue Refund Account.
(1) [Repealed.]
(2) The State Treasurer shall prepare and issue reports periodically, upon request, as follows:
a. Estimates of refund disbursements for the current fiscal year and next succeeding fiscal year by major categories for use by the Delaware Economic and Financial Advisory Council (or its successor entity) and/or members thereof; and
b. Status of Revenue Refund Account by major categories at the close of business for each month for use by the Secretary of Finance, the Director of the Office of Management and Budget, and the Controller General.
(f) No appropriation or supplemental appropriation enacted for any given fiscal year for grants-in-aid in the aggregate shall:
(1) Exceed 1.2 percent of the estimated net state General Fund revenue estimated in March for such fiscal year from all sources; and
(2) Cause the aggregate state General Fund appropriations enacted for any given fiscal year to exceed 98 percent of the estimated net state General Fund revenue for such fiscal year from all sources, including estimated unencumbered funds remaining at the end of the previous fiscal year.
The term “estimated net state General Fund revenue” means the estimated gross state General Fund revenue less estimated revenue refunds.
(g) Any appropriation for municipal street aid shall not be subject to the limitation in subsection (f) of this section.
(h) After the end of each fiscal year, the Director of the Office of Management and Budget shall transfer the appropriation to the OPEB Fund required under § 5544(c)(2) of this title.
(i) A Benchmark Appropriation is established, and is to be calculated for a fiscal year as the sum of the product of the Benchmark Index for the fiscal year and the sum of the previous fiscal year’s Budget Act and appropriations for grants-in-aid and the appropriation to the OPEB Fund, required under § 5544(c)(2) of this title, plus an amount not to exceed 1% of the previous fiscal year’s Budget Act, but only to the extent that the amount is directed as a supplemental appropriation to the bond and capital improvements act for the fiscal year.
(1) The Benchmark Index must be comprised of relevant indicators of growth in the State’s economy and initially be comprised of equal weightings of the 3-year average from the current and 2 preceding fiscal years of all of the following:
a. Delaware personal income growth.
b. Delaware population growth, plus the growth in the implicit price deflator for state and local government purchases.
(2) The Benchmark Index must be estimated and reported to the Governor and General Assembly by the Delaware Economic and Financial Advisory Council in December and May of each fiscal year. The report must include a statement of existing reserve funding available, including all of the following:
a. The balance in the Budget Reserve Account, established under § 6 of Article VIII of the Delaware Constitution.
b. The 2% set-aside, as determined by the 98% appropriation limit under § 6 of Article VIII of the Delaware Constitution.
c. The balance that was allocated to the Budget Stabilization Fund that is established under subsection (k) of this section.
(3) The Delaware Economic and Financial Advisory Council shall review the impacts of, and recommend changes to, the calculation of the Benchmark Index with a report to the Governor and General Assembly not later than October 31 of the fiscal year of a general election for the Governor of this State.
(j) Except as provided under § 6335(a)(4) of this title, aggregate General Fund appropriations in the Budget Appropriation Bill required to be submitted by the Governor under § 6335(a) of this title, and supplemental appropriations for grants-in-aid, may not exceed the product of 1 plus the Benchmark Index and the sum of aggregate General Fund appropriations in the prior year’s Budget Act plus supplemental appropriations for grants-in-aid.
(k) A Budget Stabilization Fund is established as a reserve account. Deposits to and appropriations and withdrawals from the Budget Stabilization Fund are authorized as follows:
(1) Whenever estimated unencumbered funds are projected to be negative during the current fiscal year, the General Assembly, by joint revenue resolution approved from time to time by a majority of the members elected to each House of the General Assembly and signed by the Governor under § 6(b) of Article VIII of the Delaware Constitution or act, may subtract funds from the Budget Stabilization Fund and include the funds in a revision of estimated unencumbered funds.
(2) The Director of the Office of Management and Budget shall transfer to the Budget Stabilization Fund the unencumbered balance at the end of each fiscal year in excess of the 2% set-aside, as determined by the most recent joint revenue resolution for the fiscal year under § 6 of Article VIII of the Delaware Constitution and this section.
(3) For purposes of the Budget Appropriation Bill required under § 6335(a) of this title, whenever the 98% limit under § 6 of Article VIII of the Delaware Constitution for the subsequent fiscal year is more than the Benchmark Appropriation for the fiscal year, the excess is considered “extraordinary revenues” available for allocation only to the Budget Stabilization Fund, nonrecurring expenditures, or reducing long-term liabilities. The distribution of extraordinary revenues and any such changes may be detailed in the report and the Budget Appropriation Bill as required under § 6335(a) of this title.
(4) For purposes of the Budget Appropriation Bill required under § 6335(a) of this title, whenever the 98% limit under § 6 of Article VIII of the Delaware Constitution for any given fiscal year is less than the Benchmark Appropriation for the fiscal year, the report and the Budget Appropriation Bill required under § 6335(a) of this title must detail whether and how much funding is proposed to be subtracted from the Budget Stabilization Fund and included in estimated unencumbered funds when determining the joint revenue resolution approved from time to time by a majority of the members elected to each House of the General Assembly and signed by the Governor under § 6(b) of Article VIII of the Delaware Constitution.
(l) Notwithstanding subsection (k) of this section, deposits to and appropriations and withdrawals from the Budget Stabilization Fund solely for the report and the Budget Appropriation Bill required under § 6335(a) of this title to be proposed and submitted by the Governor are limited as follows:
(1) A deposit is not required when the balance of the Budget Stabilization Fund is at or above 5% of only the estimated State General Fund revenues, as determined under subsection (b) of this section.
(2) A deposit may not be made that would increase the balance of the Budget Stabilization Fund to more than 7% of only the estimated State General Fund revenues.
(3) Appropriations and withdrawals from the Budget Stabilization Fund for any given fiscal year may not exceed 50% of the balance of the Budget Stabilization Fund.