Nicole Myers, OLLS, testified before the committee, explaining that statute limits the amount of unlimited reserves that may remain in a cash fund at the end of a fiscal year. The definition of "unlimited reserves" excludes revenue credited to a cash fund that is estimated to be derived from non-fee sources. The statute further specifies that when calculating the estimated revenue from non-fee sources, the estimate is required to be an amount "equal to the portion of total revenues received from non-fee sources in the prior fiscal year." It's the phrase "prior fiscal year" that is causing confusion among executive branch agencies. Since the statute was enacted over 20 years ago, the Office of the State Controller has directed agencies to use "the closing fiscal year" when calculating this revenue; however, some agencies read the statute as "the year prior to the closing fiscal year." While OLLS interprets the statute to read as "the year prior to the closing fiscal year," but acknowledges that this has not been the prevailing interpretation. Staff also recognizes that the OSC's interpretation is more logical. The bill to incorporate OSC's change is meant to correct a defect in the law and to eliminate antiquated language and bring the statute into harmony with modern conditions.