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To: Appropriations
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Hopson, Sparks
SENATE BILL NO. 2190
AN ACT TO AMEND SECTION 27–103–203, MISSISSIPPI CODE OF 1972, 1
TO INCREASE THE MINIMUM BALANCE REQUIREMENT OF THE WORKING 2
CASH-STABILIZATION RESERVE FUND FROM 10% OF THE TOTAL GENERAL FUND 3
APPROPRIATIONS FOR THE CURRENT FISCAL YEAR TO 15%; TO DELETE 4
OUTDATED PROVISIONS CONCERNING THE AYERS SETTLEMENT FUND; TO AMEND 5
SECTION 27-103-213, MISSISSIPPI CODE OF 1972, TO INCREASE THE 6
LIMIT ON THE DIVERSION OF THE UNENCUMBERED GENERAL FUND BALANCE TO 7
THE WORKING CASH-STABILIZATION RESERVE FUND FROM 10% OF THE 8
GENERAL FUND APPROPRIATIONS FOR THE FISCAL YEAR THAT THE 9
UNENCUMBERED GENERAL FUND CASH BALANCE REPRESENTS TO 15%; TO BRING 10
FORWARD SECTION 27-103-211, MISSISSIPPI CODE OF 1972, FOR POSSIBLE 11
AMENDMENT; AND FOR RELATED PURPOSES. 12
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 13
SECTION 1. Section 27-103-203, Mississippi Code of 1972, is 14
amended as follows: 15
27-103-203. (1) There is created in the State Treasury a 16
special fund, separate and apart from any other fund, to be 17
designated the Working Cash-Stabilization Reserve Fund. 18
(2) The Working Cash-Stabilization Reserve Fund shall not be 19
considered as a surplus or available funds when adopting a 20
balanced budget as required by law. The State Treasurer shall 21
invest all sums in the Working Cash-Stabilization Reserve Fund not 22
needed for the purposes provided for in this section in 23
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certificates of deposit, repurchase agreements and other 24
securities as authorized in Section 27-105-33(d) or Section 25
7-9-103, as the State Treasurer may determine to yield the highest 26
market rate available. * * * The interest * * * that is earned on 27
those sums shall be deposited in the Working Cash-Stabilization 28
Reserve Fund until the balance of principal and interest in the 29
fund reaches * * * fifteen percent (15%) of the total General Fund 30
appropriations for the current fiscal year, and all interest 31
earned in excess of amounts necessary to maintain the * * * 32
fifteen percent (15%) fund balance requirement shall be deposited 33
by the State Treasurer into the State General Fund. 34
(3) The Working Cash-Stabilization Reserve Fund * * * shall 35
be used by the State Treasurer for cash flow needs throughout the 36
year when the Executive Director of the Department of Finance and 37
Administration certifies that in his opinion there will be cash 38
flow deficiencies in the State General Fund. No borrowing of 39
monies from other special funds for such purposes as authorized by 40
Section 31-17-101 et seq., shall be made as long as an 41
unencumbered balance * * * remains in the fund. The State 42
Treasurer shall reimburse the fund for all sums borrowed for those 43
purposes from General Fund revenues collected during the fiscal 44
year in which those funds are used. The State Treasurer shall 45
immediately notify the Legislative Budget Office and the State 46
Department of Finance and Administration of each transfer into and 47
out of the fund. * * * 48
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(4) The Working Cash-Stabilization Reserve Fund, except for 49
Forty Million Dollars ($40,000,000.00), shall also be used for the 50
purpose of covering any projected deficits that may occur in the 51
General Fund at the end of a fiscal year as a result of revenue 52
shortfalls. If the Governor determines that a deficit in revenues 53
from all sources may occur, it shall be the duty of the Executive 54
Director of the Department of Finance and Administration to 55
transfer such funds as necessary to the General Fund to alleviate 56
the deficit in accordance with Sections 27-104-13 and 31-17-123; 57
however, not more than Fifty Million Dollars ($50,000,000.00) may 58
be transferred from the fund for that purpose in any one (1) 59
fiscal year. 60
(5) The Working Cash-Stabilization Reserve Fund also shall 61
be used to provide funds for the Disaster Assistance Trust Fund 62
when those funds are immediately needed to provide for disaster 63
assistance under Sections 33-15-301 through 33-15-317. Any 64
transfer of funds from the Working Cash-Stabilization Reserve Fund 65
to the Disaster Assistance Trust Fund shall be made in accordance 66
with the provisions of subsection (5) of Section 33-15-307. 67
(6) The Department of Finance and Administration shall 68
immediately send notice of any transfers made, or other action 69
taken under authority of this section, to the Legislative Budget 70
Office. 71
(7) Funds deposited in the Working Cash-Stabilization 72
Reserve Fund shall be used only for the purposes specified in this 73
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section, and as long as the provisions of this section remain in 74
effect, no other expenditure, appropriation or transfer of funds 75
in the Working Cash-Stabilization Reserve Fund shall be made 76
except by act of the Legislature making specific reference to the 77
Working Cash-Stabilization Reserve Fund as the source of those 78
funds. 79
(8) Any funds appropriated from the Working 80
Cash-Stabilization Reserve Fund that are unexpended at the end of 81
a fiscal year shall lapse into the Working Cash-Stabilization 82
Reserve Fund. 83
SECTION 2. Section 27-103-213, Mississippi Code of 1972, is 84
amended as follows: 85
27-103-213. (1) The unencumbered cash balance in the 86
General Fund in the State Treasury at the close of each fiscal 87
year shall be distributed to the Municipal Revolving Fund, the 88
Working Cash-Stabilization Reserve Fund and the Capital Expense 89
Fund in the manner provided in this section. 90
(2) (a) At the end of each fiscal year, the Executive 91
Director of the Department of Finance and Administration and the 92
State Treasurer shall determine the extent of the unencumbered 93
cash balance existing in the General Fund in the State Treasury. 94
(b) As used in this section, the term "unencumbered 95
cash balance" or "unencumbered General Fund cash balance" means 96
the amount in the State General Fund after deducting all 97
appropriations and other expenditures. However, if the 98
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Legislature has authorized additional or deficit appropriations or 99
transfers from the State General Fund for that fiscal year, those 100
amounts shall be subtracted from the unencumbered cash balance in 101
the General Fund before determining the amount available for 102
distribution. The unencumbered General Fund cash balance shall 103
not be determined until after August 31 of each year, and it shall 104
not be made until the State Treasurer has received a certificate 105
in writing from the Executive Director of the Department of 106
Finance and Administration, with notification to the Legislative 107
Budget Office, showing the amount of the unencumbered General Fund 108
cash balance. 109
(3) If any unencumbered General Fund cash balance is 110
available for distribution under this section, the distribution of 111
those funds shall be made by the Executive Director of the 112
Department of Finance and Administration in the following order: 113
(a) To the Municipal Revolving Fund, an amount equal to 114
Seven Hundred Fifty Thousand Dollars ($750,000.00); however, if 115
the amount of the unencumbered General Fund cash balance is less 116
than Seven Hundred Fifty Thousand Dollars ($750,000.00), then the 117
total amount of the unencumbered General Fund cash balance shall 118
be distributed to the Municipal Revolving Fund. 119
(b) To the Working Cash-Stabilization Reserve Fund, up 120
to fifty percent (50%) of the amount of the unencumbered General 121
Fund cash balance after the distributions are made under paragraph 122
(a), not to exceed * * * the amount needed to bring the balance of 123
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ST: Working Cash-Stabilization Reserve Fund;
increase minimum balance of.
the Working Cash-Stabilization Reserve Fund to fifteen percent 124
(15%) of the General Fund appropriations for the fiscal year that 125
the unencumbered General Fund cash balance represents. For the 126
purposes of this paragraph (b), the appropriations for the fiscal 127
year shall be the total amount contained in the actual 128
appropriation bills passed by the Legislature. 129
(c) To the Capital Expense Fund, any remaining amount 130
of the unencumbered General Fund cash balance after the 131
distributions are made under paragraphs (a) and (b). 132
SECTION 3. Section 27-103-211, Mississippi Code of 1972, is 133
brought forward as follows: 134
27-103-211. The total sum appropriated by the Legislature 135
from the State General Fund for any fiscal year shall not exceed 136
ninety-eight percent (98%) of the general fund revenue estimate 137
for that fiscal year developed by the Department of Revenue and 138
the University Research Center and adopted by the Joint 139
Legislative Budget Committee. The unencumbered balances in 140
general funds that will be available and on hand at the close of 141
the fiscal year shall not include projected amounts required to be 142
deposited into the Working Cash-Stabilization Reserve Fund under 143
Section 27-103-203. 144
SECTION 4. This act shall take effect and be in force from 145
and after July 1, 2026. 146