Factoid of the Month
FY 2006 and FY 2007 General Fund Summary
FY 2006 General Fund Summary
Fiscal year (FY) 2006 closed out on a positive note as the table below demonstrates. General Fund revenue totaled $2,431.3 million. This is $204.1 million above DFM’s December 2005 estimate when the impact of legislation passed during the 2006 session is included. Instead of a projected negative 1.7% growth rate, which was predicted primarily because the sales tax was lowered from 6.0% to 5.0% at the start of the fiscal year, General Fund revenue actually grew by 7.2% over FY 2005. Factoring in 2006 session legislation that impacted revenue, fund transfers, reversions, reappropriations and other miscellaneous adjustments, the FY 2006 General Fund ending balance was $302.3 million. This is $209.4 million higher than the April estimate made when the Legislature adjourned.
| FY 2006 General Fund Update | ||||
| REVENUES: | April Estimate | June Actual | Difference | |
| Beginning balance | $214,403,100 | $214,403,100 | $0 | |
| FY 2006 revenue (Includes a $1,832,500 reduction to reflect legislation) | 2,227,224,500 | 2,431,311,400 | 204,086,900 | |
| Transfers to deficiency warrant funds | (9,385,500) | (9,385,500) | 0 | |
| Transfers to and from other funds | (116,872,900) | (117,172,900) | (300,000) | |
| Miscellaneous transfers and other adjustments | 0 | 485,400 | 485,400 | |
| Cancellation of prior year encumbrances | 0 | 269,000 | 269,000 | |
| Total Funds Available | $2,315,369,200 | $2,519,910,500 | $204,541,300 | |
| EXPENDITURES: | ||||
| FY 2006 original appropriation | $2,180,928,300 | $2,180,928,300 | $0 | |
| Surplus eliminator appropriation (HB 395/396) | 14,221,900 | 14,221,900 | 0 | |
| Prior year reappropriations (FY 2005 to FY 2006) | 3,362,200 | 3,362,200 | 0 | |
| Supplementals (positive and negative) | 23,990,500 | 23,990,500 | 0 | |
| Expenditure of receipts from capital asset sales and insurance settlements | 0 | 252,800 | 252,800 | |
| Reversions | 0 | (1,502,900) | (1,502,900) | |
| Next year reappropriations (FY 2006 to FY 2007) | 0 | (3,594,200) | (3,594,200) | |
| Total Expenditures | $2,222,502,900 | $2,217,658,600 | ($4,844,300) | |
| Ending Balance | $92,866,300 | $302,251,900 | $209,385,600 | |
| FY 2007 General Fund Update | ||||
| REVENUES: | April Estimate | June Actual | Difference | |
| Beginning balance | $92,866,300 | $302,251,900 | $209,385,600 | |
| FY 2007 revenue (reflects DFM's Dec. 2005 estimate) | 2,307,602,000 | 2,307,602,000 | 0 | |
| 2006 legislation that impacts General Fund revenue | (2,636,300) | (2,636,300) | 0 | |
| Revolving Development Fund loan repayment | 22,072,100 | 22,072,100 | 0 | |
| Transfers to other funds | (78,864,200) | (78,864,200) | 0 | |
| Budget Stabilization Fund transfer (Idaho Code 57-814) | 0 | (12,917,700) | (12,917,700) | |
| Total Funds Available | $2,341,039,900 | $2,537,507,800 | $196,467,900 | |
| EXPENDITURES: | ||||
| FY 2007 original appropriation | $2,343,077,800 | $2,343,077,800 | $0 | |
| Prior year reappropriations (FY 2006 to FY 2007) | 0 | 3,594,200 | 3,594,200 | |
| Total Expenditures | $2,343,077,800 | $2,346,672,000 | $3,594,200 | |
| Ending Balance | ($2,037,900) | $190,835,800 | $192,873,700 | |
FY 2007 General Fund Summary
The April Estimate column of the FY 2007 General Fund budget, predicated on DFM’s December 2005 revenue estimate for FY 2007, used all of the predicted $92.9 million FY 2006 General Fund ending balance and was still $2.0 million short of being balanced. The June Actual column reflects three adjustments to the FY 2007 budget. The first reflects the fact that the FY 2006 ending balance was $209.4 million higher. The second reflects a $12.9 million transfer to the Budget Stabilization Fund. This was made necessary by the fact that General Fund revenue grew by more than 4.0% in FY 2006. Idaho Code 57-814 requires transfers of up to 1.0% of the previous fiscal year’s revenue but also caps the Budget Stabilization Fund at 5.0% of General Fund revenue. The third adjustment reflects $3.6 million in reappropriations from FY 2006.
The impact of these adjustments is reflected in the FY 2007 ending balance. Instead of a projected $2.0 million deficit, there is a $190.8 million surplus. It is important to recognize that these numbers are based on DFM’s December 2005 revenue estimate.
Since FY 2006 General Fund revenue exceeded the December estimate by over $200 million, it is anticipated that DFM’s revised FY 2007 revenue estimate will be raised significantly. This will obviously increase the FY 2007 projected ending balance.
| FY 2007 General Fund Update | ||||
| Ongoing and One-time Breakout | ||||
| REVENUES: | Ongoing | One-time | Total | |
| Beginning balance | $0 | $302,251,900 | $302,251,900 | |
| FY 2007 revenue (reflects DFM's Dec. 2005 estimate) | 2,307,602,000 | 0 | 2,307,602,000 | |
| 2006 legislation that impacts General Fund revenue | (2,636,300) | 0 | (2,636,300) | |
| Revolving Development Fund loan repayment | 0 | 22,072,100 | 22,072,100 | |
| Transfers to other funds | 0 | (78,864,200) | (78,864,200) | |
| Budget Stabilization Fund transfer (Idaho Code 57-814) | 0 | (12,917,700) | (12,917,700) | |
| Total Funds Available | $2,304,965,700 | $232,542,100 | $2,537,507,800 | |
| EXPENDITURES: | ||||
| FY 2007 original appropriation | $2,337,270,900 | $5,806,900 | $2,343,077,800 | |
| Prior year reappropriations (FY 2006 to FY 2007) | 0 | 3,594,200 | 3,594,200 | |
| Total Expenditures | $2,337,270,900 | $9,401,100 | $2,346,672,000 | |
| Ending Balance | ($32,305,200) | $223,141,000 | $190,835,800 | |
FY 2007 Ongoing and One-time Breakout
The table above reflects the ongoing and one-time components of the FY 2007 General Fund budget. The FY 2006 ending balance is reflected as one-time revenue, as is the repayment of the loan to the Revolving Development Fund and the transfers to the Budget Stabilization Fund and other funds authorized by the Legislature. All of the FY 2007 revenue estimate, which reflects DFM’s December 2005 number, and 2006 legislation that impacts revenue are reflected as ongoing. Most expenditures are ongoing. Just $5.8 million of the original appropriations and the $3.6 million in reappropriations are one-time.
The table displays that, using DFM’s December revenue estimate, ongoing revenue are overspent by $32.3 million and one-time revenue are under spent by $223.1 million. The point of this table is to demonstrate that the first $32.3 million of DFM’s revised revenue estimate should be reserved to fund ongoing FY 2007 expenditures. Anything beyond that can be used for other ongoing purposes such as tax relief and General Fund supplementals. In each of the last two years there have been over $20 million in supplementals provided.
The table also reflects that there is $223.1 million in one-time General Fund revenue available to fund one-time needs. Historically there has been about $7.5 million a year spent on fire suppression and other deficiency warrant fund expenses. Beyond this potential need, this money is available for one-time tax relief, transfers to other funds, or one-time spending projects.