Revolving Funds

A revolving fund is a fund of a specific government agency or entity, created by law, that collects revenues from fees and other sources and supports expenditures of that agency or entity. Agencies generally may exercise greater control over the expenditure of revolving funds than they may over appropriated dollars. The balances of the fund carry over from one year to the next for the same purpose. Expenditures from revolving funds may be limited to purposes defined by the law. Although revolving funds are non-appropriated, as part of the annual appropriations process, the Legislature may direct an agency to spend money from a revolving fund to perform their general duties, and may transfer money from a revolving fund to the Special Cash Fund to help fund other state agencies.

There are over 1,100 agency revolving funds, each designated by a specific number and title (e.g. State Bond Advisor 285 Fund – Bond Oversight Revolving Fund).