Art. IV §7 | EMERGENCY AND CONTINGENCY RESERVE FUNDS
a.
1. The Governor shall deposit into an emergency cash reserve fund not later than the first day of each fiscal year such an amount as may be required to maintain a balance in the fund of at least 2 percent of the operating expenditures of the government of the State of Washington, D.C.; provided, that if the Governor uses money from the fund during a fiscal year, the State of Washington, D.C. shall appropriate sufficient funds each fiscal year in the budget process to replenish any amounts allocated from the emergency reserve fund during the preceding fiscal years so that not less than 50 percent of any amount allocated in the preceding fiscal year or the amount necessary to restore the emergency reserve fund to the 2 percent required balance, whichever is less, is replenished by the end of the first fiscal year following each such allocation and 100 percent of the amount allocated or the amount necessary to restore the emergency reserve fund to the 2 percent required balance, whichever is less, is replenished by the end of the second fiscal year following each such allocation; provided further, that if an amount is allocated from the emergency cash reserve fund for cash-flow management purposes, the Governor shall fully replenish the fund in the amount allocated not later than the earlier of the expiration of the 9-month period that begins on the date the allocation is made or the last day of the fiscal year.
2. The Governor may use the emergency cash reserve fund to provide for unanticipated and nonrecurring extraordinary needs of an emergency nature, including for expenses associated with a natural disaster or calamity or a state of emergency as declared by the Governor, for unexpected obligations of federal law, and for cash-flow management purposes in an amount of not more than 50 percent of the balance of the fund.
b.
1. The Governor shall deposit into a contingency cash reserve fund not later than the first day of each fiscal year such amount as may be required to maintain a balance in the fund of at least 4 percent of the operating expenditures of the government of the State of Washington, D.C.; provided, that the government of the State of Washington, D.C. shall appropriate sufficient funds each fiscal year in the budget process to replenish any amounts allocated from the contingency reserve fund during the preceding fiscal years so that not less than 50 percent of any amount allocated in the preceding fiscal year or the amount necessary to restore the contingency reserve fund to the 4 percent required balance, whichever is less, is replenished by the end of the first fiscal year following each such allocation and 100 percent of the amount allocated or the amount necessary to restore the contingency reserve fund to the 4 percent required balance, whichever is less, is replenished by the end of the second fiscal year following each such allocation; provided further, that if an amount is allocated from the contingency cash reserve fund for cash-flow management purposes, the Governor shall fully replenish the fund in the amount allocated not later than the earlier of the expiration of the 9-month period that begins on the date the allocation is made or the last day of the fiscal year.
2. The Governor may use the contingency cash reserve fund to provide for nonrecurring or unforeseen needs that arise during the fiscal year, including for expenses associated with unforeseen weather or other natural disasters, unexpected obligations created by federal law or new public safety, health, welfare, or education needs or requirements that have been identified after the budget process has occurred, for opportunities to achieve cost savings, to cover revenue shortfalls experienced by the District government for 3 consecutive months (based on a 2-month rolling average) that are 5 percent or more below the budget forecast, and for cash-flow management purposes in an amount of not more than 50 percent of the balance of the fund.
Congratulations! You're now booked up on Article IV Section 7 of the District of Columbia's Constitution!
