2.__Expenditures from fund.__Amounts in the stabilization fund may be expended only to offset a General Fund revenue shortfall.

3.__Fund to be nonlapsing.__The balance of the stabilization fund may not lapse but must be carried forward to carry out the purposes of this chapter.

4.__Investment of funds.__The money in the stabilization fund may be invested as provided by law, and the earnings must be credited to the stabilization fund.

5.__Investment proceeds; exception.__At the close of every month during which the stabilization fund is at the 20% limitation described in subsection 1, the State Controller shall transfer from the General Fund to the Retirement Allowance Fund established in section 17251 an amount equivalent to the investment earnings that otherwise would have been credited to the Stabilization Fund.

6.__Death benefits.__The Governor shall allocate funds from the stabilization fund as needed to pay benefits due pursuant to Title 25, chapter 195-A.__Allocations may be made upon written request of the Chief of the State Police, State Fire Marshal or Director of Maine Emergency Medical Services within the Department of Public Safety and after consultation with the State Budget Officer.

§1523.__Declaration of budget emergency

If the Legislature has adjourned sine die prior to the close of a fiscal year and the commissioner determines that available General Fund resources will not be sufficient to meet General Fund appropriations, the commissioner may declare a budget emergency and the Governor may reduce the stabilization fund below the 1% minimum threshold established by section 1522, but only to a level sufficient to bring the budget back into balance.__ The Governor shall inform the Legislative Council immediately upon such transfers from the stabilization fund.

§1524.__General Fund appropriation limitation