Text: HJR02001 Text: HJR02003 Text: HJR02000 - HJR02099 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 is subject to a revenue
1 8 limit and a spending limit as provided in section 7. Its
1 9 beginning revenue limit is equal to its total revenue in the
1 10 last fiscal year before this Article becomes effective. This
1 11 limit is adjusted annually for the total of (1) the cumulative
1 12 percentage rate of inflation or deflation since the base date,
1 13 as measured by the federal implicit price deflator for state
1 14 and local government purchases or its successor index, and (2)
1 15 the state's cumulative percentage population increase above
1 16 the population at the base date. There is no reduction or
1 17 offset for any cumulative population decrease below the
1 18 population at the base date. "Population" is determined by
1 19 the most recent federal census or federal census estimate.
1 20 The "base date" is the date eighteen months before this
1 21 Article becomes effective.
1 22 SEC. 2. "Revenue" includes all amounts received from all
1 23 sources, including but not limited to all taxes, fees,
1 24 charges, assessments, amounts borrowed, and other receipts,
1 25 except these excluded amounts: (1) amounts refunded to the
1 26 payers; (2) gifts and contracts from nongovernmental sources;
1 27 (3) receipts from the federal government; (4) fees voluntarily
1 28 paid for state university hospital services, but any part of a
1 29 fee in excess of the actual cost of providing that service is
1 30 revenue; (5) an amount equal to the state government's net
1 31 cost increase required by a federal law or rule, or change in
1 32 a federal law or rule, that takes effect after this Article
1 33 becomes effective, but only to the extent not offset by
1 34 federal funds; (6) amounts collected pursuant to section 8 of
1 35 Article VII; (7) amounts borrowed after approval by vote of
2 1 the electors; (8) amounts borrowed by issuing revenue bonds on
2 2 which no payment can be made from tax revenue; (9) receipts
2 3 applied to repay money borrowed lawfully, including interest;
2 4 and (10) amounts excluded from revenue by section 8.
2 5 SEC. 3. If state government revenue in a fiscal year
2 6 exceeds the revenue limit, the limit for the next fiscal year
2 7 shall be reduced by the excess amount.
2 8 SEC. 4. The revenue limit may be temporarily increased in
2 9 an amount approved by a majority of the electors voting in a
2 10 referendum. The increase is effective for no more than five
2 11 fiscal years. Each referendum ballot is limited to this issue
2 12 and shall not include any other proposal or subject. Each
2 13 such referendum shall be held only on the first Tuesday after
2 14 the first Monday in June or the first Tuesday after the first
2 15 Monday in November.
2 16 SEC. 5. The revenue limit may be temporarily increased by
2 17 law adopted by two-thirds vote of the whole membership of each
2 18 house of the General Assembly and approved by the Governor.
2 19 Each such law is effective for only one fiscal year.
2 20 SEC. 6. Any change under section 3, 4, or 5 is effective
2 21 only for the specified fiscal year or years and does not
2 22 affect computation of the limit under section 1.
2 23 SEC. 7. Total state government spending in a fiscal year
2 24 shall not exceed the spending limit, which is equal to the sum
2 25 of the (1) revenue limit for that year, adjusted for any
2 26 change under section 3, 4, or 5, or actual revenue, whichever
2 27 is less; (2) actual receipts in that year which are excluded
2 28 from revenue by section 2; and (3) net unspent funds carried
2 29 over from the preceding year. "Spending" includes all outlays
2 30 for all purposes, unless expressly excluded by section 8.
2 31 SEC. 8. "Revenue" includes all receipts for state
2 32 government trust funds for retirement, medical, or other
2 33 benefits, but earnings of these trust funds are excluded from
2 34 both revenue and spending. "Spending" includes all payments
2 35 and transfers into these trust funds, and excludes payments
3 1 out of these trust funds for the kind of benefits for which
3 2 the payments into the trust fund were made. Payments for
3 3 expenses of administration are included in spending. "Net
3 4 unspent funds" excludes these trust funds. This section also
3 5 applies to any state government trust fund for unemployment
3 6 benefits and to the state's unemployment trust fund account
3 7 with the federal government, except that (1) its receipts,
3 8 including reimbursements for benefits paid but excluding
3 9 penalties and interest, are excluded from revenue to the
3 10 extent that federal law requires them to be deposited promptly
3 11 with the federal government as a condition of federal approval
3 12 of the state's unemployment program, and (2) amounts lawfully
3 13 paid as unemployment benefits are excluded from spending.
3 14 SEC. 9. In each fiscal year the percentage of state
3 15 government spending that consists of state transfers to local
3 16 governments and tax credits against local taxes shall be at
3 17 least equal to that percentage in the last fiscal year before
3 18 this Article becomes effective.
3 19 SEC. 10. If a state law or rule, or change in a state law
3 20 or rule, that takes effect after this Article becomes
3 21 effective requires a local government to incur a net cost
3 22 increase, the State shall pay to the local government the
3 23 amount of the necessary net cost increase. The local
3 24 government need not comply with the law, rule, or change until
3 25 the State has complied with this section.
3 26 SEC. 11. Any state government plan for retirement or other
3 27 employee benefits shall be completely funded within ten years
3 28 after this Article becomes effective and at all times
3 29 thereafter, in accordance with generally accepted actuarial
3 30 and accounting principles.
3 31 SEC. 12. The state government shall use consistent
3 32 accounting, in accordance with generally accepted accounting
3 33 principles, for all purposes.
3 34 SEC. 13. This Article creates fundamental and inalienable
3 35 rights in each taxpayer and each citizen. Any infringement of
4 1 these rights shall be subjected to strictest scrutiny. This
4 2 Article shall be interpreted and implemented to achieve its
4 3 purpose to limit the growth rate of revenue and spending of
4 4 the state government. Any taxpayer or citizen has standing to
4 5 sue by individual or class action to enforce this Article and
4 6 laws implementing it and, if successful, shall be reimbursed
4 7 for all reasonable attorney fees and other expenses of the
4 8 suit.
4 9 SEC. 14. This Article becomes effective for the first
4 10 state fiscal year beginning at least six months after its
4 11 approval and ratification by the electors. The State, by law,
4 12 shall implement this Article and may adopt further
4 13 restrictions and limits. However, all provisions of this
4 14 Article are self-executing and severable.
4 15 Sec. 2. DECLARATION OF INTENT. It is the intent of the
4 16 General Assembly in agreeing to this proposed amendment that:
4 17 1. This declaration of intent shall be relied on by the
4 18 electors and the courts, with the same results as if it were
4 19 in the Constitution.
4 20 2. Article XIII requires all amounts borrowed to be
4 21 included in revenue, except the two kinds of borrowing
4 22 expressly excluded by section 2 of Article XIII. Article XIII
4 23 does not authorize any borrowing and does not impair the debt
4 24 limits and other provisions of Article VII. It does not
4 25 impair any law that limits taxes, revenue, spending,
4 26 borrowing, or debt or that requires approval by the electors
4 27 for a tax, tax increase, borrowing, or debt, including laws
4 28 requiring more than a majority vote and laws allowing the
4 29 electors to approve borrowing or debt for any stated number of
4 30 years. It does not impair any contract in existence when
4 31 Article XIII becomes effective.
4 32 3. In each referendum under section 4 of Article XIII, the
4 33 ballot and published notice shall clearly state: that the
4 34 proposal would allow the state government to increase its
4 35 taxes and other revenue by a stated amount above its
5 1 constitutional limit for each fiscal year during a stated
5 2 period; the total increase for that period; and the amount of
5 3 the revenue limit under section 1 of Article XIII for the
5 4 preceding and current fiscal years and for the next fiscal
5 5 year, estimated if necessary.
5 6 4. Official revisions of inflation and population data
5 7 affect the revenue limit for future fiscal years, but do not
5 8 change the limit for the fiscal year in which a revision is
5 9 made or for prior years.
5 10 5. If the state government excludes an amount from revenue
5 11 or spending under any provision of Article XIII, it must
5 12 accurately determine and establish the correct amount
5 13 excluded.
5 14 6. "Government" includes all parts, agencies, enterprises,
5 15 and operations of a government. "Local government" includes
5 16 each city, county, school district, special district, and
5 17 political subdivision in the State.
5 18 7. If the state government has a deficit of net unspent
5 19 funds at the end of a fiscal year, the deficit is subtracted
5 20 in computing the next year's spending limit under section 7 of
5 21 Article XIII. However, section 7 is intended to prevent any
5 22 such deficit and to require the state government to operate on
5 23 a balanced budget.
5 24 Sec. 3. It is the intent of the General Assembly that the
5 25 declaration of intent in section 2 be placed on the ballot
5 26 containing the question of ratification of this proposed
5 27 amendment to the Constitution.
5 28 Sec. 4. The foregoing proposed amendment to the
5 29 Constitution of the State of Iowa is referred to the General
5 30 Assembly to be chosen at the next general election for members
5 31 of the General Assembly and the Secretary of State is directed
5 32 to cause it to be published for three consecutive months
5 33 previous to the date of that election as provided by law.
5 34 EXPLANATION
5 35 This proposed Taxpayers' Rights Amendment adds a new
6 1 Article to the Iowa Constitution. It limits the future growth
6 2 rate of the total revenue and total spending of the state
6 3 government, with some exceptions.
6 4 The state government's beginning revenue limit is equal to
6 5 its total revenue in the last fiscal year before this
6 6 amendment becomes effective. This limit is adjusted annually
6 7 for the combined total of cumulative inflation or deflation
6 8 and any cumulative population increase after the base date.
6 9 The population adjustment can rise or fall, but it cannot fall
6 10 below the population at the base date. The base date is 18
6 11 months before this amendment becomes effective.
6 12 The state government's spending limit is equal to its
6 13 revenue limit, or actual revenue if less, for that year, plus
6 14 almost all actual receipts which are outside the revenue
6 15 limit, plus unspent funds carried over. This will require the
6 16 State to operate on a balanced budget.
6 17 The revenue limit can be temporarily increased in either of
6 18 two ways:
6 19 1. A majority vote of the people in a state referendum can
6 20 increase the limit in any amount, for any purpose, and for any
6 21 period up to five years.
6 22 2. A vote of two-thirds of all members of each house of
6 23 the General Assembly, with the governor's approval, can
6 24 increase the limit for one year.
6 25 If actual state revenue exceeds the revenue limit, the
6 26 limit for the next year is reduced by the excess amount. The
6 27 excess revenue cannot be spent in the year it is received but
6 28 can be spent in any future year. This is intended to help the
6 29 State even out the good and bad economic years.
6 30 The State must maintain the percentage of total state
6 31 spending that consists of state transfers to local governments
6 32 and tax credits against local taxes, at least equal to that
6 33 percentage in the last fiscal year before this amendment
6 34 becomes effective. This is intended to protect local
6 35 governments and property taxpayers.
7 1 The State must pay for a state-mandated net cost increase
7 2 imposed on a local government after this amendment becomes
7 3 effective. The local government need not obey the mandate
7 4 until the State has complied.
7 5 The revenue limits include nearly all taxes and most other
7 6 revenue. Receipts outside the revenue limit are: amounts
7 7 refunded; private gifts and contracts; receipts from the
7 8 federal government; a fee for state university hospital
7 9 services, if the fee does not exceed the cost of the service;
7 10 the amount of a net cost increase caused by a new or changed
7 11 federal mandate and not offset by federal funds; motor vehicle
7 12 registration fees and motor vehicle fuel taxes which are
7 13 constitutionally earmarked for roads; amounts borrowed with
7 14 the voters' approval; amounts borrowed by revenue bonds not
7 15 payable from taxes; receipts used to repay borrowed money; and
7 16 earnings of trust funds.
7 17 If actual revenue is below the revenue limit, this does not
7 18 reduce any future revenue limit. Thus, the State is not
7 19 penalized for holding its revenue and spending below the
7 20 limit.
7 21 Sound funding of any state retirement or benefit plan for
7 22 employees is required within 10 years.
7 23 The state government is required to follow generally
7 24 accepted accounting principles.
7 25 Any taxpayer or citizen may sue to enforce this new Article
7 26 of the Constitution.
7 27 Explanatory language is included in a separate declaration
7 28 of intent which will not become part of the Constitution but
7 29 will serve as a guide for interpretation.
7 30 This resolution, if adopted, will be referred to the next
7 31 General Assembly. If the next General Assembly adopts this
7 32 resolution, the amendment will be submitted to the voters for
7 33 their decision on ratification.
7 34 LSB 3773HH 77
7 35 sc/jw/5
Text: HJR02001 Text: HJR02003 Text: HJR02000 - HJR02099 Text: HJR Index Bills and Amendments: General Index Bill History: General Index
© 1998 Cornell College and League of Women Voters of Iowa
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