2021 Delaware Code
Title 29 - State Government
Chapter 61. General Fund
§ 6102. Composition of General Fund; Delaware Higher Education Loan Program Fund.
(a) Except as otherwise specifically provided by law, all receipts and moneys of this State shall be deposited by or to the credit of the State Treasurer in 1 General Fund. The General Fund shall include all moneys derived from taxes, fees, permits, licenses, fines, forfeitures or from any other sources or of other receipts of any kind or from any other source including the sale or disposition of surplus or other property of the State and of every agency thereof including receipts heretofore authorized as funds for specific use of any agency by the authority of any law of this State, but not including funds specified by the Constitution of the State to the extent thereof only and not including funds derived from the sale of bonds for the specific purposes named therein, and not including funds or receipts or grants made for a particular purpose pursuant to an act of Congress of the United States, and not including any endowment fund or gift made for particular purposes and not including any sinking fund authorized by the laws of this State. This section shall be construed to include moneys formerly credited to the School Fund except that all sums required to be credited to such School Fund by the Constitution of this State shall continue to be credited to the School Fund to the extent thereof only.
(b) Nothing in this chapter shall be construed to deprive any agency of the right to receive and expend, for the purpose for which they were collected, any proceeds collected for board, tuition or hospital treatment and from the sale of farm products, and this chapter shall have no application to any money or other property received by the University of Delaware, Delaware State University or Delaware Technical and Community College from any source except money appropriated to it, or for its use, by the General Assembly of the State.
(c) If an agency, in the process of replacing an item of state-owned equipment, should sell such equipment, the proceeds of the sale may be credited to the appropriate General Fund appropriation account of the agency and applied toward the cost of the replacement in accordance with regulations established by the Director of the Office of Management and Budget.
(d) This section notwithstanding, the State Board of Education shall be authorized to charge a rental rate for portable classrooms owned by the State and to use the proceeds for necessary repairs or lease purchase of additional portable classrooms.
(e) All money which has been appropriated by the General Assembly now deposited in a special fund account, as well as all money hereafter appropriated by the General Assembly to Delaware Higher Education Loan Program, hereinafter called the agency, established by Executive Order 40, dated August 27, 1970, for the use in and purpose of carrying out the function of the Delaware Higher Education Loan Program established under the provisions of the United States Higher Education Act of 1965 (20 U.S.C. § 1001 et seq.), shall be deposited by or to the credit of the State Treasurer in 1 special fund account to be known as the Delaware Higher Education Loan Program Fund. In addition, the following money or receipts shall be deposited by or to the credit of the State Treasurer in the Delaware Higher Education Loan Program Fund:
(1) Money or receipts advanced by the federal government for carrying out the program of the agency;
(2) Money or receipts received by the agency as loan insurance premiums;
(3) Money or receipts received by the agency through gift, grant or by other means from other sources;
(4) Money or receipts collected on defaulted loans by the agency after expenses of collection; or
(5) Money or receipts in the nature of interest or other earnings derived from the investment by the State Treasurer thereof.
The money or receipts deposited in or credited to the Delaware Higher Education Loan Program Fund shall not be part of the General Fund of the State and shall not be commingled with the money or receipts of the General Fund or of any other special fund of the State.
(f) All moneys collected pursuant to Chapter 73 of Title 6, other than those which are to be deposited in or transferred to the Investor Protection Fund pursuant to § 73-703 of Title 6, shall be part of the General Fund. The Attorney General shall specifically include in the Attorney General's annual operational budget the salaries, including, but not limited to, the salary of the Deputy Attorney General appointed Securities Commissioner, and other expenses of administering Chapter 73 of Title 6 which are not met by the Investor Protection Fund.
(g) All revenue collected by the Division of Child Support Services, as established under the Social Services Amendments of 1974 (P.L. 93-647, 42 U.S.C. § 651 et seq.) pursuant to its functions under the Division of Child Support Services and Paternity Program, except for an amount to be specified annually in the budget act as an appropriated special fund which shall be considered an incentive payment to enable the Division to increase child support collections, shall be deposited into a special fund account known as the Division of Child Support Services Account. The revenue deposited into the Division of Child Support Services Account shall not be a part of the General Fund of the State and shall only be handled in accordance with § 457 of the Social Services Amendments of 1974 (42 U.S.C. § 657). Further, such portions of these funds deposited to the credit of the Division of Child Support Services Account, as shall be periodically determined to belong to the State, shall be deposited to the credit of the General Fund of the State.
(h) Nothing in this chapter shall be construed to deprive the Delaware State Housing Authority of the right to receive and expend, for operating costs, replacements and maintenance, rental and operating income from housing managed by said Authority and to maintain separate internal funds accounts and reserve accounts for such purposes; provided, further, that any interest or other earnings which accrue on balances in any accounts managed by the Delaware State Housing Authority shall not be deposited in the General Fund except on General Fund appropriations.
(i) Provisions of this chapter to the contrary notwithstanding, the Delaware Emergency Management Agency shall have the right to apply for, receive and expend funds or grants, pursuant to contracts or otherwise, from public or private sources, for operating expenses associated with the Delaware radiological emergency plan, and to have such funds maintained in a special fund account for such purposes.
(j) Other provisions of this section notwithstanding, certain funds deposited by a reorganized school district shall be credited to the local fund account of that district. Funds so credited shall include:
(1) Library funds;
(2) Payments for lost or damaged equipment, books, supplies and materials of the school;
(3) Payment for damaged real property of the school district;
(4) Parking permits;
(5) Any other income derived from fees, permits, licenses, fines or forfeitures.
(k) (1) Provisions of this chapter to the contrary notwithstanding, the Office of Management and Budget is authorized to establish and maintain a special fund for the purposes of improving statewide, departmental, and divisional indirect cost recoveries from programs financed in whole or in part with federal funds. The Director of the Office of Management and Budget, with the approval of the Controller General, may enter into such contracts and employ such people or services as the Director deems necessary to increase the amounts of and monitor the receipt of indirect cost recoveries to the State. Specifically, this fund may reimburse the State Auditor's office for federal audits performed if the audited agency has deposited sufficient federal funds to compensate the Auditor of Accounts for services rendered. Federal reimbursements deposited in such special fund, and not required to carry out the purposes described in this section, shall be transferred to the General Fund. The Director of the Office of Management and Budget will make periodic reports of progress toward increased indirect cost reimbursements to the Delaware State Clearinghouse Committee at such time as the chairperson may determine.
(2) The Indirect Cost Recovery Program is authorized to recover indirect costs from nonfederal special funded regulatory and service agencies. Costs that are allocated to a state agency under this authority shall be billed to the state agency, and the cost is payable to the Office of Management and Budget. The source of payment for the billed indirect cost shall be any revenue source except the General Fund. If the billed agency is authorized to bill and recover direct expenses, the agency shall recover indirect costs in the same manner.
(l) Provisions of this chapter to the contrary notwithstanding, the Business Enterprise Program, operated by the Division for the Visually Impaired within the Department of Health and Social Services under the authority of 20 U.S.C. § 107 et seq., shall be authorized to expend receipts from the vending stands in the Program for operating costs, maintenance and overhead.
(m) (1) A Revenue Management Unit shall be established, within the Division of Business Administration and General Services, for the administration of all responsibilities and duties related to the revenue collection function of the institutions and agencies operated by the Department, including all policies and procedures pertaining to the administration of subchapter III of Chapter 79 of this title.
(2) An appropriated special fund (ASF) is to be designated as the Department of Health and Social Services Revenue Management Fund, which shall be used for the operation of the Revenue Management Unit, to be funded through the Department revenues which the Unit collects. On or about July 1 of each fiscal year, the total amount of the ASF appropriation for this Unit for the fiscal year shall be deposited in the aforementioned holding account. At the close of the fiscal year, the unspent and unencumbered balance in said line shall revert to the General Fund.
(n) Notwithstanding any other provision of law to the contrary, every fee or other charge for a license or permit (whether the revenue generated has been deposited in the General Fund or in an appropriated special fund account) which is in effect and was imposed before July 2, 1990, by any authority, department, agency, instrumentality, commission, officer, board or other unit of state government which is authorized by law to issue such license or permit is hereby approved and ratified by the General Assembly retroactive to the date each such fee or other charge was imposed or increased.
(o) (1) Notwithstanding other provisions of this chapter, there shall be established a special fund of the State to be known as the “Inspection and Maintenance Fund” (referred to in this subsection as “the I & M Fund”).
(2) The Secretary of Finance shall, commencing at the beginning of each fiscal year, cause to be deposited into the I & M Fund amounts received as payments of costs assessed by the Justice of the Peace Courts relating to traffic and criminal cases under § 9801(2) of Title 10 [repealed], until the amount deposited in said fiscal year shall equal $2,800,000.
(3) The purpose of the I & M Fund is to provide operating expenses associated with the Delaware Motor Vehicle Enhanced Inspection and Maintenance Program. Any balance in the I & M Fund as of the last day of the fiscal year in excess of $250,000 shall be deposited into the General Fund.
(4) The Secretary of Finance shall make deposits into the I & M Fund as required under this section commencing after June 30, 1995.
(p) [Transferred.]
(q) (1) A special fund of the State is created in the Department of Finance to be known as the “Elderly Property Tax Relief and Education Expense Fund,” to which shall be deposited $13,000,000 received in any revenue source not otherwise committed to a special fund and from which shall be paid claims made under this subsection and § 1919(d) of Title 14. Should such claims exceed $13,000,000 during any fiscal year, the Secretary of Finance, with the approval of the Director of the Office of Management and Budget and Controller General, may transfer from the general contingency line in the Department of Education to the Elderly Property Tax Relief and Education Expense Fund the amount of such reasonably foreseen additional claims. Any balance remaining in the Elderly Property Tax Relief and Education Expense Fund at the conclusion of any fiscal year shall revert to the General Fund.
(2) Sums appropriated pursuant to this subsection shall be allocated to school districts using a method that recognizes factors including, but not limited to, the number of primary residential households owned by persons 65 or over who meet the durational residency requirement of § 1917(c) of Title 14 in each school district, the relative value of residential property owned by persons 65 and over, the relative property values of each school district, the school tax rates of each school district, and the average rate of application for tax relief pursuant to this subsection. The final method and allocation of these moneys shall be approved by the Secretary of Finance in consultation with the Controller General.
(3) Local school boards shall decide through majority vote of the whole school board whether to authorize a credit against taxation imposed pursuant to Chapter 19 of Title 14 on the valuation of any qualified property, as defined in § 1917(c) of Title 14. The maximum such credit shall be the lesser of 50% of such tax remaining after taking into account any exemption pursuant to Title 9 and Title 22, or $500. The receiver of taxes and county treasurer shall apply such credit after any change to the current expense tax rate pursuant to this section. Should the local school board decide to authorize less than the maximum amount of credit against taxation, the local school board shall develop a plan for using moneys received pursuant to this subsection, provide appropriate and reasonable public notice and comment on the proposed plan, and approve the plan through majority vote of the local school board. Local school boards shall submit the approved plan to the Secretary of Finance, the Secretary of Education, the Director of the Office of Management and Budget and the Controller General. In the event that local school boards choose not to authorize the aforementioned credit against taxation, the sums appropriated herein will result in increased state funding for education-related expenses of the school districts. Education-related expenses for the purposes of this subsection shall be defined as including, but not being limited to, computer hardware and software, library resources and other instructional materials, and minor capital improvements to school facilities. Local school boards and all other responsible parties under this paragraph are hereby directed to cause such conditions to be met as soon as practicable after the enactment of this section, but in no event later than October 30, 1999, and shall notify the Secretary of Finance and the Controller General as soon as such conditions are met. Notwithstanding any of the foregoing to the contrary, funds received pursuant to this section shall not be used for major capital improvements or debt service.
(r) (1) A special fund of the State is created in the Department of Finance to be known as the “Disabled Veterans Property Tax Relief and Education Expense Fund,” to which shall be deposited $1,000,000 received in any revenue source not otherwise committed to a special fund and from which shall be paid claims made under this subsection and § 1919(e) of Title 14. Should such claims exceed $1,000,000 during any fiscal year, the Secretary of Finance, with the approval of the Director of the Office of Management and Budget and Controller General, may transfer from the general contingency line in the Department of Education to the Disabled Veterans Property Tax Relief and Education Expense Fund the amount of such reasonably foreseen additional claims. Any balance remaining in the Disabled Veterans Fund at the conclusion of any fiscal year shall revert to the General Fund.
(2) Sums appropriated pursuant to this subsection shall be allocated to school districts using a method that recognizes factors including, but not limited to, the number of primary residential households owned by disabled veterans in each school district, the relative value of residential property owned by disabled veterans, the relative property values of each school district, the school tax rates of each school district, and the average rate of application for tax relief pursuant to this subsection. The final method and allocation of these moneys shall be approved by the Secretary of Finance in consultation with the Controller General.
(3) Local school boards shall decide through majority vote of the whole school board whether to authorize a credit against taxation imposed pursuant to Chapter 19 of Title 14 on the valuation of any qualified property, as defined in § 1917(d) of Title 14. The credit shall be for the full amount of tax remaining after taking into account any exemption pursuant to Title 9 and Title 22. The receiver of taxes and county treasurer shall apply such credit after any change to the current expense tax rate pursuant to this subsection. In the event that local school boards choose not to authorize the aforementioned credit against taxation, the sums appropriated herein will revert to the General Fund. In the first year after a school board authorizes a credit, the Secretary of Finance, in consultation with the receiver of taxes or county treasurer, shall determine the effective date of such credit based upon reasonable implementation requirements and operational capacity.
(s) Receipts received under Chapter 11 of Title 12, shall be deposited into the General Fund provided; however, that in no fiscal year shall such General Fund deposits exceed $554,000,000.
(t) (1) An appropriated special fund of the State to be known as the “Federal Fiscal Relief Fund” is hereby created in the Office of Management and Budget. The State Treasurer shall deposit all state assistance funds received under Title VI of the federal Social Security Act [42 U.S.C. § 801 (repealed)] to the Federal Fiscal Relief Fund.
(2) Moneys from the Federal Fiscal Relief Fund must be expended for Delaware's citizens in the following areas:
a. To provide essential government services;
b. To cover the costs to the State of complying with any federal intergovernmental mandate to the extent that the mandate applies to the State and the federal government has not provided funds to cover the costs; and
c. To make investments in those areas of highest priority of the General Assembly to the benefit of all Delawareans.
(3) The Federal Fiscal Relief Fund is an interest earning account. All interest earned must be reinvested in the Federal Fiscal Relief Fund.
(4) Money may not be expended from the Federal Fiscal Relief Fund except pursuant to an appropriation within the State's Bond and Capital Improvement Act or the annual Appropriations Act, or otherwise enacted by the General Assembly.
(u) All debt service payments collected by the State from local school districts with respect to the school districts' obligations issued to the State pursuant to § 7506 of this title, for the local share of school district capital projects shall be deposited in a special fund account to be known as the “School District Local Share Special Account.” The amounts are to be deposited in said account to pay the debt service payable by the State with respect to general obligation bonds issued by the State. The holders of the general obligation bonds which are paid, in whole or in part, from the special account created pursuant to this subsection shall continue to have all the rights and remedies to which they are entitled under § 10, article VIII of the Constitution of this State and under Chapter 74 of this title.
Should the amount in said special fund account prove insufficient relative to the debt service obligations at any time during the fiscal year, the State Treasurer is hereby authorized to pay the obligation from any debt service account. Any interfund transaction so required shall be reversed when funding becomes available.
(v) Notwithstanding any other provision in law to the contrary, the Division of Medicaid and Medical Assistance shall be allowed to deposit the applicable state share of any drug rebate funds, drug settlement proceeds, including qui tam cases, third-party collections and other collections related to the provision of health care (minus retention amounts specified in state or federal law), as well as any fines, restitution or punitive damages related thereto into the appropriate Medicaid and Medical Assistance account and use them to meet program costs.
42 Del. Laws, c. 77, § 1; 43 Del. Laws, c. 12; 29 Del. C. 1953, § 6102; 50 Del. Laws, c. 46, § 1; 50 Del. Laws, c. 406, § 1; 55 Del. Laws, c. 325; 57 Del. Laws, c. 196; 58 Del. Laws, c. 367; 59 Del. Laws, c. 208, § 3; 59 Del. Laws, c. 311, § 1; 60 Del. Laws, c. 281, § 1; 60 Del. Laws, c. 408, § 1; 60 Del. Laws, c. 444, § 1; 61 Del. Laws, c. 468, § 4; 62 Del. Laws, c. 172, § 1; 63 Del. Laws, c. 254, § 2; 64 Del. Laws, c. 50, § 1; 64 Del. Laws, c. 99, § 1; 64 Del. Laws, c. 334, §§ 165(a)-(c); 65 Del. Laws, c. 181, § 1; 66 Del. Laws, c. 190, § 15; 66 Del. Laws, c. 303, §§ 118, 175, 210; 67 Del. Laws, c. 259, § 1; 67 Del. Laws, c. 274, § 14; 69 Del. Laws, c. 67, § 2; 69 Del. Laws, c. 78, § 4; 69 Del. Laws, c. 172, § 1; 69 Del. Laws, c. 222, § 1; 70 Del. Laws, c. 186, § 1; 70 Del. Laws, c. 210, § 21; 72 Del. Laws, c. 251, § 1; 72 Del. Laws, c. 252, § 1; 72 Del. Laws, c. 256, § 1; 73 Del. Laws, c. 9, § 4; 73 Del. Laws, c. 310, § 3; 74 Del. Laws, c. 49, § 1; 75 Del. Laws, c. 88, § 21(13); 75 Del. Laws, c. 89, § 145; 75 Del. Laws, c. 350, § 165; 76 Del. Laws, c. 205, § 5; 76 Del. Laws, c. 288, § 11; 77 Del. Laws, c. 84, § 160; 78 Del. Laws, c. 76, § 15; 78 Del. Laws, c. 77, § 33(a); 78 Del. Laws, c. 78, § 108; 78 Del. Laws, c. 175, § 113; 79 Del. Laws, c. 79, § 29; 80 Del. Laws, c. 78, § 15; 80 Del. Laws, c. 234, § 24; 81 Del. Laws, c. 71, § 2; 81 Del. Laws, c. 78, § 12; 83 Del. Laws, c. 124, § 3;
