Text: HJR00003 Text: HJR00005 Text: HJR00000 - HJR00099 Text: HJR Index Bills and Amendments: General Index Bill History: General Index
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 Article XIII: 1 5 ARTICLE XIII. 1 6 TAXPAYERS' RIGHTS. 1 7 SECTION 1. The state government and each local government 1 8 is subject to a revenue limit and a spending limit as provided 1 9 in section 8. Each government's beginning revenue limit is 1 10 equal to its highest total revenue in any one of the last four 1 11 fiscal years before this Article becomes effective. This 1 12 limit is adjusted annually for the total of (1) the cumulative 1 13 percentage rate of inflation or deflation since the base date, 1 14 as measured by the federal implicit price deflator for state 1 15 and local government purchases or its successor index, and (2) 1 16 that government's cumulative percentage population increase 1 17 since the base date. There is no reduction or offset for any 1 18 cumulative population decrease since the base date. 1 19 "Population" is determined by the most recent federal census 1 20 or federal census estimate. A school district's "population" 1 21 is its full-time equivalent student enrollment. The "base 1 22 date" is the date eighteen months before this Article becomes 1 23 effective. Each county government's revenue limit includes 1 24 all townships in the county. 1 25 SEC. 2. "Revenue" includes all amounts received from all 1 26 sources, including but not limited to all taxes, fees, 1 27 charges, assessments, and other receipts, except these 1 28 excluded amounts: (1) amounts refunded to the payers; (2) 1 29 gifts and contracts from nongovernmental sources; (3) receipts 1 30 from the federal government; (4) fees voluntarily paid for 1 31 hospital or public utility services, but any part of a fee in 1 32 excess of the actual cost of providing that service is 1 33 revenue; (5) an amount equal to a government's net cost 1 34 increase required by a federal law or rule, or change in a 1 35 federal law or rule, that takes effect after this Article 2 1 becomes effective, but only to the extent not offset by 2 2 federal funds; (6) amounts borrowed after approval by vote of 2 3 the electors; (7) amounts borrowed by issuing revenue bonds on 2 4 which no payment can be made from tax revenue; (8) receipts 2 5 applied to repay money borrowed lawfully, including interest; 2 6 and (9) amounts excluded from revenue by sections 3 and 9. 2 7 SEC. 3. The state revenue limit excludes, and the local 2 8 limits include, state revenue transferred to local governments 2 9 or applied as tax credits against local taxes. Any other 2 10 amount transferred between governments is counted only once as 2 11 revenue, by the government first receiving it. 2 12 SEC. 4. If a government's revenue in a fiscal year exceeds 2 13 its revenue limit, its limit for the next fiscal year shall be 2 14 reduced by the excess amount. 2 15 SEC. 5. A government's revenue limit may be temporarily 2 16 increased in an amount approved by a majority of that 2 17 government's electors voting in a referendum. The increase is 2 18 effective for no more than five fiscal years. Each referendum 2 19 ballot is limited to this issue and shall not include any 2 20 other proposal or subject. Each such referendum shall be held 2 21 only on the first Tuesday after the first Monday in June or 2 22 the first Tuesday after the first Monday in November. 2 23 SEC. 6. One or more revenue limits may be temporarily 2 24 increased by law adopted by two-thirds vote of the whole 2 25 membership of each house of the General Assembly and approved 2 26 by the Governor. A local government's revenue limit may be 2 27 temporarily increased by not more than ten percent, by vote of 2 28 three-fourths of the whole membership of its governing body 2 29 after prominent notice and public hearing. Each increase 2 30 under this section is effective for only one fiscal year. 2 31 SEC. 7. Any change in a limit under section 4, 5, or 6 is 2 32 effective only for the specified fiscal year or years and does 2 33 not affect computation of the limit under section 1. 2 34 SEC. 8. Each government's total spending in a fiscal year 2 35 shall not exceed its spending limit, which is equal to the sum 3 1 of its (1) revenue limit for that year, adjusted for any 3 2 change under section 4, 5, or 6, or actual revenue, whichever 3 3 is less; (2) actual receipts in that year which are excluded 3 4 from revenue by section 2 or 3; and (3) net unspent funds 3 5 carried over from the preceding year. "Spending" includes all 3 6 outlays for all purposes, unless expressly excluded by section 3 7 9. 3 8 SEC. 9. "Revenue" includes all receipts for a government's 3 9 trust funds for unemployment, retirement, medical, or other 3 10 benefits, but earnings of these trust funds are excluded from 3 11 both revenue and spending. "Spending" includes all payments 3 12 and transfers into these trust funds, and excludes payments 3 13 out of these trust funds for the purpose for which the 3 14 payments into the trust fund were made. "Net unspent funds" 3 15 excludes these trust funds. 3 16 SEC. 10. If a new local government is created, the State 3 17 shall establish its base date and the amount of its beginning 3 18 revenue limit, and shall reduce the appropriate state or local 3 19 revenue limit or limits by that amount. If two or more local 3 20 governments are combined, their revenue limits shall be 3 21 combined. If a service or program is transferred by law among 3 22 local governments, their revenue limits shall be 3 23 proportionally adjusted by law, with no increase in the 3 24 combined limits. The State may transfer any part of its 3 25 revenue limit to a local government but shall not transfer any 3 26 part of a local limit to the State. 3 27 SEC. 11. If a state law or rule, or change in a state law 3 28 or rule, that takes effect after this Article becomes 3 29 effective requires a local government to incur a net cost 3 30 increase, the State shall pay to the local government the 3 31 amount of the necessary net cost increase, and shall increase 3 32 the local revenue limit and decrease the state revenue limit 3 33 by that amount. The local government need not comply with the 3 34 law, rule, or change until the State has complied with this 3 35 section. 4 1 SEC. 12. Any state or local government plan for retirement 4 2 or other employee benefits shall be completely funded within 4 3 ten years after this Article becomes effective, and at all 4 4 times thereafter, in accordance with generally accepted 4 5 actuarial and accounting principles. 4 6 SEC. 13. The state and local governments shall use 4 7 consistent accounting, in accordance with generally accepted 4 8 accounting principles, for all purposes. 4 9 SEC. 14. This Article creates fundamental and inalienable 4 10 rights in each taxpayer and each citizen. Any infringement of 4 11 these rights shall be subjected to strictest scrutiny. This 4 12 Article shall be interpreted and implemented to achieve its 4 13 purpose to limit the growth rate of revenue and spending of 4 14 the state and local governments. Any taxpayer or citizen has 4 15 standing to sue by individual or class action to enforce this 4 16 Article and laws implementing it and, if successful, shall be 4 17 reimbursed for all reasonable expenses of the suit. 4 18 SEC. 15. This Article becomes effective for the first 4 19 state fiscal year beginning at least six months after its 4 20 approval and ratification by the electors. The State, by law, 4 21 shall implement this Article and may adopt further 4 22 restrictions and limits. However, all provisions of this 4 23 Article are self-executing and severable. 4 24 Sec. 2. DECLARATION OF INTENT. It is the intent of the 4 25 General Assembly in agreeing to the foregoing proposed 4 26 amendment that: 4 27 1. This declaration of intent shall be relied on by the 4 28 electors and the courts, with the same results as if it were 4 29 in the Constitution. 4 30 2. Article XIII does not authorize any borrowing and does 4 31 not impair the debt limits and other provisions of Article 4 32 VII. It does not impair any law that limits taxes, revenue, 4 33 spending, borrowing, or debt or that requires approval by the 4 34 electors for a tax, tax increase, borrowing, or debt, 4 35 including laws requiring more than a majority vote and laws 5 1 allowing the electors to approve borrowing or debt for any 5 2 stated number of years. It does not impair any contract in 5 3 existence when Article XIII becomes effective. 5 4 3. In each referendum under section 5 of Article XIII, the 5 5 ballot and published notice shall clearly state: that the 5 6 proposal would allow the specified government to increase its 5 7 taxes and other revenue by a stated amount above its 5 8 constitutional limit for each fiscal year during a stated 5 9 period; the total increase for that period; and the amount of 5 10 the government's revenue limit under section 1 of Article XIII 5 11 for the preceding and current fiscal years and for the next 5 12 fiscal year, estimated if necessary. 5 13 4. Official revisions of inflation and population data 5 14 affect revenue limits for future fiscal years, but do not 5 15 change limits for the fiscal year in which a revision is made 5 16 or for prior years. 5 17 5. A government which excludes an amount from revenue or 5 18 spending under any provision of Article XIII must accurately 5 19 determine and establish the correct amount excluded. 5 20 6. "Government" includes all parts, agencies, enterprises, 5 21 and operations of a government. "Local government" includes 5 22 each city, county, school district, special district, and 5 23 political subdivision in the State, except that townships are 5 24 included with county governments. An agreement or joint 5 25 action by two or more governments does not create a new 5 26 government unless expressly provided by state law, but all 5 27 revenue and spending related to the agreement or joint action 5 28 are included in revenue and spending of the appropriate 5 29 governments. 5 30 7. Because county limits include townships, a county 5 31 government may limit the total revenue and spending of 5 32 townships in that county. 5 33 8. If a government has a deficit of net unspent funds at 5 34 the end of a fiscal year, the deficit is subtracted in 5 35 computing the next year's spending limit under section 8 of 6 1 Article XIII. However, section 8 is intended to prevent any 6 2 such deficit and to require each government to operate on a 6 3 balanced budget. 6 4 Sec. 3. The foregoing proposed amendment to the 6 5 Constitution of the State of Iowa is referred to the General 6 6 Assembly to be chosen at the next general election for members 6 7 of the General Assembly and the Secretary of State is directed 6 8 to cause it to be published for three consecutive months 6 9 previous to the date of that election as provided by law. 6 10 EXPLANATION 6 11 This proposed Taxpayers' Rights Amendment adds a new 6 12 Article to the Iowa Constitution. It limits the future growth 6 13 rate of the total revenue and total spending of the state and 6 14 local governments, with some exceptions. 6 15 Each government has its own revenue limit and spending 6 16 limit. County limits include townships. 6 17 Each government's beginning revenue limit is equal to its 6 18 highest total revenue in any of the four fiscal years before 6 19 this amendment becomes effective. This limit is adjusted 6 20 annually for the combined total of cumulative inflation or 6 21 deflation and any cumulative population increase after the 6 22 base date. The population adjustment can rise or fall, but it 6 23 cannot fall below the population at the base date. The base 6 24 date is the date 18 months before this amendment becomes 6 25 effective. 6 26 Each government's spending limit is equal to its revenue 6 27 limit, or actual revenue if less, for that year, plus almost 6 28 all actual receipts which are outside the revenue limit, plus 6 29 unspent funds carried over. This will require each government 6 30 to operate on a balanced budget. 6 31 A government's revenue limit can be temporarily increased 6 32 in any of three ways: (1) A majority vote of the people in a 6 33 state or local referendum can increase the limit in any 6 34 amount, for any purpose, and for any period up to five years. 6 35 (2) A vote of two-thirds of all members of each house of the 7 1 legislature, with the governor's approval, can increase any or 7 2 all limits for one year. (3) A vote of three-fourths of all 7 3 members of a local governing body can increase that local 7 4 government's limit by not more than 10 percent for one year, 7 5 after notice and hearing. 7 6 If a government's actual revenue exceeds its revenue limit, 7 7 its limit for the next year is reduced by the excess amount. 7 8 The excess revenue cannot be spent in the year it is received 7 9 but can be spent in any future year. This is intended to help 7 10 governments even out the good and bad economic years. 7 11 State aid to local governments and state credits against 7 12 local taxes are outside the state limit and are included in 7 13 local limits. Thus, one additional state tax dollar sent to a 7 14 local government that is at its revenue limit will require an 7 15 equal $1 reduction in local taxes. This provision encourages 7 16 using state revenue for local property tax replacement. 7 17 The State must pay for a state-mandated net cost increase 7 18 imposed on a local government after this amendment becomes 7 19 effective, and must increase the local revenue limit and 7 20 decrease the state limit by the amount of the net cost 7 21 increase. The local government need not obey the mandate 7 22 until the State has complied. 7 23 The revenue limits include all taxes and most other 7 24 revenue. Receipts outside the revenue limit are: amounts 7 25 refunded; private gifts and contracts; receipts from the 7 26 federal government; a fee for hospital or public utility 7 27 service, if the fee does not exceed the cost of the service; 7 28 the amount of a net cost increase caused by a new federal 7 29 mandate and not offset by federal funds; amounts borrowed with 7 30 the voters' approval; revenue bonds not payable from taxes; 7 31 receipts used to repay borrowed money; and earnings of trust 7 32 funds. 7 33 If a government's actual revenue is below its revenue 7 34 limit, this does not reduce any future revenue limit. Thus, a 7 35 government is not penalized for holding its revenue and 8 1 spending below the limit. 8 2 The amendment provides for changes in revenue limits if a 8 3 new local government is created, if local governments combine, 8 4 or if a state law transfers services among local governments. 8 5 However, the State cannot increase its share of total state 8 6 and local revenue and spending limits. 8 7 Sound funding of any retirement or benefit plan for 8 8 government employees is required within 10 years. 8 9 The state and all local governments are required to follow 8 10 generally accepted accounting principles. 8 11 Any taxpayer or citizen may sue to enforce this new Article 8 12 of the Constitution. 8 13 Explanatory language is included in a separate declaration 8 14 of intent which will not become part of the Constitution but 8 15 will serve as a guide for interpretation. 8 16 This resolution, if adopted, will be referred to the next 8 17 general assembly. If the next general assembly adopts this 8 18 resolution, the amendment will be submitted to the voters for 8 19 their decision on ratification. 8 20 LSB 1468YH 76 8 21 sc/sc/14.2
Text: HJR00003 Text: HJR00005 Text: HJR00000 - HJR00099 Text: HJR Index Bills and Amendments: General Index Bill History: General Index
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