State Fiscal Highlights
· No direct fiscal effect on the state.
Local Fiscal Highlights
· The bill authorizes a board of township trustees to require that interest earned on amounts within special funds be credited to those special funds rather than to the township general fund. This could make some additional revenue available in funds that are created to support specific services.
Detailed Fiscal Analysis
The bill authorizes a board of township trustees to adopt a resolution requiring that the interest earned on a special fund be credited to that special fund rather than to the township's general fund as under current law. This authority would apply to all special funds except those that house the proceeds from bond sales or are used to retire debt. The most common special funds administered by townships include those used to pay for police, fire, emergency medical services, road maintenance, cemetery, park, and solid waste collection operations. The change in the bill would give townships more flexibility in budgeting for these specific services. In many townships, special fund balances exceed general fund balances, especially in the case of police and fire funds.
