Slide 45 of 84
Transfers into the fund occur when the economy is performing strongly, when the growth in personal income, after adjusting for inflation, is more than 2 percent. The calculation is simple. The percentage in excess of 2 percent is multiplied times the revenue base and that's how much will go in. Transfers into the fund have the effect of limiting the growth in spending by taking money off the table during strong years so that it will be available to support the programs and support the budget when the economy weakens and revenues weaken. And deposits may be appropriated by the legislature into the fund even if the formula isn't triggered.