Text: HJR00013 Text: HJR00015 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 above the population at the base date. There is no reduction
1 18 or offset for any cumulative population decrease below the
1 19 population at the base date. "Population" is determined by
1 20 the most recent federal census or federal census estimate. A
1 21 school district's "population" is its full-time equivalent
1 22 student enrollment. The "base date" is the date eighteen
1 23 months before this Article becomes effective. Each county
1 24 government's revenue limit includes all townships in the
1 25 county.
1 26 SEC. 2. "Revenue" includes all amounts received from all
1 27 sources, including but not limited to all taxes, fees,
1 28 charges, assessments, and other receipts, except these
1 29 excluded amounts: (1) amounts refunded to the payers; (2)
1 30 gifts and contracts from nongovernmental sources; (3) receipts
1 31 from the federal government; (4) fees voluntarily paid for
1 32 hospital or public utility services, but any part of a fee in
1 33 excess of the actual cost of providing that service is
1 34 revenue; (5) an amount equal to a government's net cost
1 35 increase required by a federal law or rule, or change in a
2 1 federal law or rule, that takes effect after this Article
2 2 becomes effective, but only to the extent not offset by
2 3 federal funds; (6) amounts collected pursuant to section 8 of
2 4 Article VII; (7) all amounts borrowed lawfully; (8) receipts
2 5 applied to repay borrowing, including interest, if the
2 6 borrowing was authorized by vote of the electors; (9) receipts
2 7 applied to repay borrowing, including interest, if the
2 8 borrowing is within a class for which the receipts applied to
2 9 repayment are excluded from revenue by law adopted by two-
2 10 thirds vote of the whole membership of each house of the
2 11 general assembly and approved by the governor; and (10)
2 12 amounts excluded from revenue by sections 3 and 9.
2 13 SEC. 3. The state revenue limit excludes, and the local
2 14 limits include, state revenue transferred to local governments
2 15 or applied as tax credits against local taxes. Any other
2 16 amount transferred between governments is counted only once as
2 17 revenue, by the government first receiving it.
2 18 SEC. 4. If a government's revenue in a fiscal year exceeds
2 19 its revenue limit, its limit for the next fiscal year shall be
2 20 reduced by the excess amount.
2 21 SEC. 5. A government's revenue limit may be temporarily
2 22 increased in an amount approved by a majority of that
2 23 government's electors voting in a referendum. The increase is
2 24 effective for no more than five fiscal years. Each referendum
2 25 ballot is limited to this issue and shall not include any
2 26 other proposal or subject. Each such referendum shall be held
2 27 only on the first Tuesday after the first Monday in June or
2 28 the first Tuesday after the first Monday in November.
2 29 SEC. 6. One or more revenue limits may be temporarily
2 30 increased by law adopted by two-thirds vote of the whole
2 31 membership of each house of the General Assembly and approved
2 32 by the Governor. A local government's revenue limit may be
2 33 temporarily increased by not more than ten percent, by vote of
2 34 three-fourths of the whole membership of its governing body
2 35 after prominent notice and public hearing. Each increase
3 1 under this section is effective for only one fiscal year.
3 2 SEC. 7. Any change in a limit under section 4, 5, or 6 is
3 3 effective only for the specified fiscal year or years and does
3 4 not affect computation of the limit under section 1.
3 5 SEC. 8. Each government's total spending in a fiscal year
3 6 shall not exceed its spending limit, which is equal to the sum
3 7 of its (1) revenue limit for that year, adjusted for any
3 8 change under section 4, 5, or 6, or actual revenue, whichever
3 9 is less; (2) actual receipts in that year which are excluded
3 10 from revenue by section 2 or 3; and (3) net unspent funds
3 11 carried over from the preceding year. "Spending" includes all
3 12 outlays for all purposes, unless expressly excluded by section
3 13 9.
3 14 SEC. 9. "Revenue" includes all receipts for a government's
3 15 trust funds for unemployment, retirement, medical, or other
3 16 benefits, but earnings of these trust funds are excluded from
3 17 both revenue and spending. "Spending" includes all payments
3 18 and transfers into these trust funds, and excludes payments
3 19 out of these trust funds for the purpose for which the
3 20 payments into the trust fund were made. "Net unspent funds"
3 21 excludes these trust funds.
3 22 SEC. 10. If a new local government is created, the State
3 23 shall establish its base date and the amount of its beginning
3 24 revenue limit, and shall reduce the appropriate state or local
3 25 revenue limit or limits by that amount. If two or more local
3 26 governments are combined, their revenue limits shall be
3 27 combined. If a service or program is transferred by law among
3 28 local governments, their revenue limits shall be
3 29 proportionally adjusted by law, with no increase in the
3 30 combined limits. The State may transfer any part of its
3 31 revenue limit to a local government but shall not transfer any
3 32 part of a local limit to the State.
3 33 SEC. 11. If a state law or rule, or change in a state law
3 34 or rule, that takes effect after this Article becomes
3 35 effective requires a local government to incur a net cost
4 1 increase, the State shall pay to the local government the
4 2 amount of the necessary net cost increase, and shall increase
4 3 the local revenue limit and decrease the state revenue limit
4 4 by that amount. The local government need not comply with the
4 5 law, rule, or change until the State has complied with this
4 6 section.
4 7 SEC. 12. Any state or local government plan for retirement
4 8 or other employee benefits shall be completely funded within
4 9 ten years after this Article becomes effective, and at all
4 10 times thereafter, in accordance with generally accepted
4 11 actuarial and accounting principles.
4 12 SEC. 13. The state and local governments shall use
4 13 consistent accounting, in accordance with generally accepted
4 14 accounting principles, for all purposes.
4 15 SEC. 14. This Article creates fundamental and inalienable
4 16 rights in each taxpayer and each citizen. Any infringement of
4 17 these rights shall be subjected to strictest scrutiny. This
4 18 Article shall be interpreted and implemented to achieve its
4 19 purpose to limit the growth rate of revenue and spending of
4 20 the state and local governments. Any taxpayer or citizen has
4 21 standing to sue by individual or class action to enforce this
4 22 Article and laws implementing it and, if successful, shall be
4 23 reimbursed for all reasonable expenses of the suit.
4 24 SEC. 15. This Article becomes effective for the first
4 25 state fiscal year beginning at least six months after its
4 26 approval and ratification by the electors. The State, by law,
4 27 shall implement this Article and may adopt further
4 28 restrictions and limits. However, all provisions of this
4 29 Article are self-executing and severable.
4 30 Sec. 2. DECLARATION OF INTENT. It is the intent of the
4 31 General Assembly in agreeing to the foregoing proposed
4 32 amendment that:
4 33 1. This declaration of intent shall be relied on by the
4 34 electors and the courts, with the same results as if it were
4 35 in the Constitution.
5 1 2. Article XIII does not authorize any borrowing and does
5 2 not impair the debt limits and other provisions of Article
5 3 VII. It does not impair any law that limits taxes, revenue,
5 4 spending, borrowing, or debt or that requires approval by the
5 5 electors for a tax, tax increase, borrowing, or debt,
5 6 including laws requiring more than a majority vote and laws
5 7 allowing the electors to approve borrowing or debt for any
5 8 stated number of years. It does not impair any contract in
5 9 existence when Article XIII becomes effective.
5 10 3. In each referendum under section 5 of Article XIII, the
5 11 ballot and published notice shall clearly state: that the
5 12 proposal would allow the specified government to increase its
5 13 taxes and other revenue by a stated amount above its
5 14 constitutional limit for each fiscal year during a stated
5 15 period; the total increase for that period; and the amount of
5 16 the government's revenue limit under section 1 of Article XIII
5 17 for the preceding and current fiscal years and for the next
5 18 fiscal year, estimated if necessary.
5 19 4. Official revisions of inflation and population data
5 20 affect revenue limits for future fiscal years, but do not
5 21 change limits for the fiscal year in which a revision is made
5 22 or for prior years.
5 23 5. A government which excludes an amount from revenue or
5 24 spending under any provision of Article XIII must accurately
5 25 determine and establish the correct amount excluded.
5 26 6. "Government" includes all parts, agencies, enterprises,
5 27 and operations of a government. "Local government" includes
5 28 each city, county, school district, special district, and
5 29 political subdivision in the State, except that townships are
5 30 included with county governments. An agreement or joint
5 31 action by two or more governments does not create a new
5 32 government unless expressly provided by state law, but all
5 33 revenue and spending related to the agreement or joint action
5 34 are included in revenue and spending of the appropriate
5 35 governments.
6 1 7. Because county limits include townships, a county
6 2 government may limit the total revenue and spending of
6 3 townships in that county.
6 4 8. If a government has a deficit of net unspent funds at
6 5 the end of a fiscal year, the deficit is subtracted in
6 6 computing the next year's spending limit under section 8 of
6 7 Article XIII. However, section 8 is intended to prevent any
6 8 such deficit and to require each government to operate on a
6 9 balanced budget.
6 10 9. It is the intent of the General Assembly that this
6 11 declaration of intent be placed on the ballot containing the
6 12 question of ratification of this proposed amendment to the
6 13 Constitution.
6 14 Sec. 3. The foregoing proposed amendment to the
6 15 Constitution of the State of Iowa is referred to the General
6 16 Assembly to be chosen at the next general election for members
6 17 of the General Assembly and the Secretary of State is directed
6 18 to cause it to be published for three consecutive months
6 19 previous to the date of that election as provided by law.
6 20 HJR 14
6 21 sc/pk/25
Text: HJR00013 Text: HJR00015 Text: HJR00000 - HJR00099 Text: HJR Index Bills and Amendments: General Index Bill History: General Index
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