House Joint Resolution 1
HOUSE JOINT RESOLUTION
BY J.K. VAN FOSSEN, BOAL, RAYHONS,
KRAMER, D. HANSON, DE BOEF, JONES,
ALONS, DRAKE, LUKAN, J.R. VAN FOSSEN,
ELGIN, GREINER, LALK, CARROLL,
TYMESON, WATTS, HUSEMAN, HAHN,
UPMEYER, and S. OLSON
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
HOUSE JOINT RESOLUTION
1 A Joint Resolution proposing amendments to the Constitution of
2 the State of Iowa relating to the state budget by limiting
3 state general fund expenditures and restricting certain state
4 tax revenue changes.
5 BE IT RESOLVED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. The following amendment to the Constitution of
1 2 the State of Iowa is proposed:
1 3 The Constitution of the State of Iowa is amended by adding
1 4 the following new section to new Article XIII:
1 5 ARTICLE XIII.
1 6 EXPENDITURE LIMITATION.
1 7 GENERAL FUND EXPENDITURE LIMITATION. Section 1.
1 8 1. For the purposes of this section:
1 9 a. "Adjusted revenue estimate" means the most recent
1 10 revenue estimate determined before January 1, or a later and
1 11 lesser revenue estimate determined before adjournment of the
1 12 regular session of the General Assembly, for the general fund
1 13 for the following fiscal year as determined by a revenue
1 14 estimating conference which shall be established by the
1 15 General Assembly by law, adjusted by subtracting estimated
1 16 refunds payable from that estimated revenue and adding any
1 17 available surplus in accordance with subsection 5.
1 18 b. "General fund" means the principal operating fund of
1 19 the state which shall be established by the General Assembly
1 20 by law.
1 21 c. "New revenues" means moneys received by the state due
1 22 to increased tax rates or fees or newly created taxes or fees
1 23 over and above those moneys received due to state taxes or
1 24 fees that are in effect as of January 1 following the most
1 25 recent state revenue estimating conference. "New revenues"
1 26 also includes moneys received by the general fund due to new
1 27 transfers over and above those moneys received by the general
1 28 fund due to transfers that are in effect as of January 1
1 29 following the most recent state revenue estimating conference.
1 30 The state revenue estimating conference shall determine the
1 31 eligibility of transfers to the general fund that are to be
1 32 considered as new revenue in determining the state general
1 33 fund expenditure limitation.
1 34 d. "Surplus" means the cumulative excess of revenues and
1 35 other financing sources over expenditures and other financing
2 1 uses for the general fund at the end of a fiscal year.
2 2 2. A state general fund expenditure limitation is created
2 3 and calculated in subsection 3, for each fiscal year beginning
2 4 on or after July 1 following the effective date of this
2 5 section.
2 6 3. Except as otherwise provided in this section, the state
2 7 general fund expenditure limitation for a fiscal year shall be
2 8 ninety=nine percent of the adjusted revenue estimate.
2 9 4. The state general fund expenditure limitation shall be
2 10 used by the Governor in the preparation of the budget and by
2 11 the General Assembly in the budget process. If a new revenue
2 12 source is proposed, the budget revenue projection used for
2 13 that new revenue source for the period beginning on the
2 14 effective date of the new revenue source and ending in the
2 15 fiscal year in which the source is included in the adjusted
2 16 revenue estimate shall be ninety=five percent of the amount
2 17 remaining after subtracting estimated refunds payable from the
2 18 projected revenue from that source. If a new revenue source
2 19 is established and implemented, the original state general
2 20 fund expenditure limitation amount provided for in subsection
2 21 3 shall be readjusted to include ninety=five percent of the
2 22 estimated revenue from that source.
2 23 5. Any surplus existing at the end of a fiscal year that
2 24 exceeds ten percent of the adjusted revenue estimate for that
2 25 fiscal year shall be included in the adjusted revenue estimate
2 26 for the following fiscal year. Any surplus equal to ten
2 27 percent or less of the adjusted revenue estimate for a fiscal
2 28 year may be included in the adjusted revenue estimate for the
2 29 following fiscal year if approved in a bill receiving the
2 30 affirmative votes of at least three=fifths of the whole
2 31 membership of each house of the General Assembly.
2 32 6. The scope of the expenditure limitation under
2 33 subsection 3 shall not include federal funds, donations,
2 34 constitutionally dedicated moneys, and moneys in expenditures
2 35 from a state retirement system.
3 1 7. The Governor shall submit and the General Assembly
3 2 shall pass a budget which does not exceed the state general
3 3 fund expenditure limitation.
3 4 8. The Governor shall not submit and the General Assembly
3 5 shall not pass a budget which in order to balance assumes
3 6 reversion of any part of the total of the appropriations
3 7 included in the budget.
3 8 9. The state shall use consistent standards, in accordance
3 9 with generally accepted accounting principles, for all state
3 10 budgeting and accounting purposes.
3 11 10. The General Assembly shall enact laws to implement
3 12 this section.
3 13 Sec. 2. The following amendment to the Constitution of the
3 14 State of Iowa is proposed:
3 15 The Constitution of the State of Iowa is amended by adding
3 16 the following new sections to new Article XIII:
3 17 ARTICLE XIII.
3 18 THREE=FIFTHS MAJORITY FOR TAX LAW CHANGES.
3 19 THREE=FIFTHS MAJORITY TO INCREASE TAXES. Section 1. A
3 20 bill containing provisions enacting, amending, or repealing
3 21 the state income tax or enacting, amending, or repealing the
3 22 state sales and use taxes, in which the aggregate fiscal
3 23 impact of those provisions relating to those taxes results in
3 24 a net increase in state tax revenues, as determined by the
3 25 General Assembly, shall require the affirmative votes of at
3 26 least three=fifths of the whole membership of each house of
3 27 the General Assembly for passage. This section does not apply
3 28 to income tax or sales and use taxes imposed at the option of
3 29 a local government.
3 30 THREE=FIFTHS MAJORITY TO ENACT NEW STATE TAX. Sec. 2. A
3 31 bill that establishes a new state tax to be imposed by the
3 32 state shall require the affirmative votes of at least three=
3 33 fifths of the whole membership of each house of the General
3 34 Assembly for passage.
3 35 ENFORCEMENT OF THREE=FIFTHS MAJORITY REQUIREMENT. Sec. 3.
4 1 A lawsuit challenging the proper enactment of a bill pursuant
4 2 to section 1 or 2 shall be filed no later than one year
4 3 following the enactment. Failure to file such a lawsuit
4 4 within the one=year time limit shall negate the three=fifths
4 5 majority requirement as it applies to the bill.
4 6 Each bill to which section 1 or 2 applies shall include a
4 7 separate provision describing the requirements for enactment
4 8 prescribed by section 1 or 2.
4 9 IMPLEMENTATION. Sec. 4. The General Assembly shall enact
4 10 laws to implement sections 1 through 3.
4 11 Sec. 3. The foregoing proposed amendments to the
4 12 Constitution of the State of Iowa are referred to the General
4 13 Assembly to be chosen at the next general election for members
4 14 of the General Assembly and the Secretary of State is directed
4 15 to cause them to be published for three consecutive months
4 16 previous to the date of that election as provided by law.
4 17 EXPLANATION
4 18 This resolution proposes two amendments within a new
4 19 Article XIII to the Constitution of the State of Iowa which
4 20 relate to state budgets.
4 21 The first amendment establishes a state general fund
4 22 expenditure limitation. The amount of the limitation is 99
4 23 percent of the adjusted revenue estimate. The amendment
4 24 defines adjusted revenue estimate and requires that that
4 25 estimate be determined by a revenue estimating conference
4 26 which is to be created by the general assembly by law. The
4 27 amendment requires that the expenditure limitation be used by
4 28 the governor in preparation of the governor's budget and by
4 29 the general assembly in the budget process. The amendment
4 30 also provides that, if a new revenue source is established and
4 31 implemented, 95 percent of the estimate of that new revenue
4 32 shall be included in the expenditure limitation.
4 33 The first amendment also provides that the amount of any
4 34 surplus that exceeds an amount equal to 10 percent of the
4 35 adjusted revenue estimate shall be included in the adjusted
5 1 revenue estimate for the following fiscal year. Any surplus
5 2 which is equal to 10 percent or less of the amount of the
5 3 adjusted revenue estimate may be included in the following
5 4 year's adjusted revenue estimate if use, of those funds is
5 5 approved by a three=fifths majority of each house of the
5 6 general assembly. The amendment also requires the state to
5 7 use generally accepted accounting principles for state
5 8 budgeting and accounting purposes. The amendment provides
5 9 that the general assembly shall enact laws to implement the
5 10 amendment.
5 11 The second amendment contained in the resolution requires a
5 12 three=fifths majority vote of each house for certain tax law
5 13 changes. The amendment provides that any bill that enacts,
5 14 amends, or repeals the state income tax or the state sales and
5 15 use tax, and which causes, in the aggregate, an increase in
5 16 state tax revenues, as determined by the general assembly,
5 17 must be adopted by at least three=fifths of the whole
5 18 membership of each house of the general assembly. The
5 19 amendment also requires a three=fifths majority vote of each
5 20 house of the general assembly in order to enact a new state
5 21 tax to be imposed by the state. A lawsuit challenging
5 22 enactment of a bill subject to either three=fifths majority
5 23 passage requirement must be filed no later than one year from
5 24 the date of enactment of the bill. Finally, the amendment
5 25 provides that the general assembly shall enact laws to
5 26 implement the amendment.
5 27 The resolution, if adopted, will be referred to the next
5 28 general assembly. If the next general assembly adopts this
5 29 resolution, the amendment will be submitted to the voters for
5 30 their decision on ratification.
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