1. A. If the revenues of the general fund exceed the total of appropriations from the general fund, the excess revenue shall be transferred to the general fund operating reserve; provided that if the sum of the excess revenue plus the balance in the general fund operating reserve prior to the transfer is greater than eight percent of the aggregate recurring appropriations from the general fund for the previous fiscal year, then an amount equal to the smaller of either the amount of the excess revenue or the difference between the sum and eight percent of the aggregate recurring appropriations from the general fund for the previous fiscal year shall be transferred to the government results and opportunity expendable trust.
2. B. If the balance in the general fund operating reserve as of the end of a fiscal year is less than one percent of aggregate general fund appropriations for that fiscal year, as determined by the department of finance and administration, then an amount equal to the smaller of either one percent of aggregate general fund appropriations for that fiscal year or the amount necessary to bring the balance of the general fund operating reserve to one percent of aggregate general fund appropriations for that fiscal year shall be transferred from the tax stabilization reserve to the general fund operating reserve.

History: 1978 Comp., § 6-4-4, enacted by Laws 1987, ch. 347, § 4; 1989, ch. 71, § 1; 2017 (1st S.S.), ch. 3, § 1; 2020, ch. 34, § 2; 2024, ch. 18, § 3.

ANNOTATIONS

The 2024 amendment, effective May 15, 2024, provided that the excess revenues of the general fund operating reserve are to be transferred to the government results and opportunity expendable trust instead of the tax stabilization reserve; in the section heading, deleted "Transfers between general fund reserves" and added the remainder of the section heading; and in Subsection A, deleted "For the seventy-seventh and subsequent fiscal years" and after "transferred to the" deleted "tax stabilization reserve" and added "government results and opportunity expendable trust".

Temporary provisions. — Laws 2024, ch. 18, § 4 provided that during the 2024 legislative interim, the staff of the legislative finance committee and the state budget division of the department of finance and administration shall meet regularly to examine and analyze the provisions of the Accountability in Government Act [Chapter 6, Article 3A NMSA 1978] to determine if changes to that act could be made to ensure more cost-effective and responsive government services. On or before December 15, 2024, the staff shall report their findings and make recommendations for legislative changes if any are found to be necessary to the legislative finance committee.

The 2020 amendment, effective May 20, 2020, provided for the transfer of a portion of the balance in the tax stabilization reserve if the balance in the general fund operating reserve is less than one percent of aggregate appropriations; in the section heading, deleted "Reservation of excess" and added "Transfers between", and after "general fund", deleted "revenues" and added "reserves"; added subsection designation "A.", and before each occurrence of "operating reserve", added "general fund"; and added Subsection B.

The 2017 (1st S.S.) amendment, effective July 1, 2018, eliminated the transfer of funds to the taxpayers dividend fund; in the catchline, deleted "appropriation to taxpayers dividend fund"; and after "transferred to the tax stabilization reserve", deleted the remainder of the section, which related to certain transfers of excess funds to the taxpayers dividend fund.