The unrestricted balance remaining in the general fund at the end of a state fiscal year is called the general fund surplus. The bill requires the state treasurer to transfer the general fund surplus as follows:
- 70% to the state education fund; and
- 30% to the higher education fund.
These transfers begin in the current fiscal year and do not stop until the negative factor no longer applies to the financing of public schools. The general assembly may appropriate moneys in the higher education fund for any purpose related to higher education.