Text: HJR02004                          Text: HJR02006
Text: HJR02000 - HJR02099               Text: HJR Index
Bills and Amendments: General Index     Bill History: General Index


House Joint Resolution 2005

Partial Bill History

Bill Text

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 which are received by the
  1 22 state due to increased tax rates or fees or newly created
  1 23 taxes or fees over and above those moneys which are received
  1 24 due to state taxes or fees which are in effect as of January 1
  1 25 following the most recent state revenue estimating conference.
  1 26 "New revenues" also includes moneys received by the general
  1 27 fund due to new transfers over and above those moneys received
  1 28 by the general fund due to transfers which are in effect as of
  1 29 January 1 following the most recent state revenue estimating
  1 30 conference.  The state revenue estimating conference shall
  1 31 determine the eligibility of transfers to the general fund
  1 32 which are to be considered as new revenue in determining the
  1 33 state general fund expenditure limitation.
  1 34    2.  A state general fund expenditure limitation is created
  1 35 and calculated in subsection 3, for each fiscal year beginning
  2  1 on or after July 1 following the effective date of this
  2  2 section.
  2  3    3.  Except as otherwise provided in this section, the state
  2  4 general fund expenditure limitation for a fiscal year shall be
  2  5 ninety-nine percent of the adjusted revenue estimate.
  2  6    4.  The state general fund expenditure limitation shall be
  2  7 used by the Governor in the preparation of the budget and by
  2  8 the General Assembly in the budget process.  If a new revenue
  2  9 source is proposed, the budget revenue projection used for
  2 10 that new revenue source for the period beginning on the
  2 11 effective date of the new revenue source and ending in the
  2 12 fiscal year in which the source is included in the adjusted
  2 13 revenue estimate shall be ninety-five percent of the amount
  2 14 remaining after subtracting estimated refunds payable from the
  2 15 projected revenue from that source.  If a new revenue source
  2 16 is established and implemented, the original state general
  2 17 fund expenditure limitation amount provided for in subsection
  2 18 3 shall be readjusted to include ninety-five percent of the
  2 19 estimated revenue from that source.
  2 20    5.  Any surplus existing at the end of a fiscal year which
  2 21 exceeds ten percent of the adjusted revenue estimate of that
  2 22 fiscal year shall be included in the adjusted revenue estimate
  2 23 for the following fiscal year.  Any surplus equal to ten
  2 24 percent or less of the adjusted revenue estimate of the fiscal
  2 25 year may be included in the adjusted revenue estimate for the
  2 26 following fiscal year if approved in a bill receiving the
  2 27 affirmative votes of at least three-fifths of the whole
  2 28 membership of each house of the General Assembly.  For
  2 29 purposes of this section, "surplus" means the cumulative
  2 30 excess of revenues and other financing sources over
  2 31 expenditures and other financing uses for the general fund at
  2 32 the end of a fiscal year.
  2 33    6.  The scope of the expenditure limitation under
  2 34 subsection 3 shall not include federal funds, donations,
  2 35 constitutionally dedicated moneys, and moneys in expenditures
  3  1 from a state retirement system.
  3  2    7.  The Governor shall submit and the General Assembly
  3  3 shall pass a budget which does not exceed the state general
  3  4 fund expenditure limitation.
  3  5    8.  The Governor shall not submit and the General Assembly
  3  6 shall not pass a budget which in order to balance assumes
  3  7 reversion of any part of the total of the appropriations
  3  8 included in the budget.
  3  9    9.  The state shall use consistent standards, in accordance
  3 10 with generally accepted accounting principles, for all state
  3 11 budgeting and accounting purposes.
  3 12    10.  The General Assembly shall enact laws to implement
  3 13 this section.
  3 14    Sec. 2.  The following amendment to the Constitution of the
  3 15 State of Iowa is proposed:
  3 16    The Constitution of the State of Iowa is amended by adding
  3 17 the following new sections to new Article XIII:  
  3 18                          ARTICLE XIII.
  3 19           THREE-FIFTHS MAJORITY FOR TAX LAW CHANGES.
  3 20    THREE-FIFTHS MAJORITY TO INCREASE TAXES.  Section 1.  A
  3 21 bill containing provisions enacting, amending, or repealing
  3 22 the state income tax or enacting, amending, or repealing the
  3 23 state sales and use taxes, in which the aggregate fiscal
  3 24 impact of those provisions relating to those taxes results in
  3 25 a net increase in state tax revenues, as determined by the
  3 26 General Assembly, shall require the affirmative votes of at
  3 27 least three-fifths of the whole membership of each house of
  3 28 the General Assembly for passage.  This section does not apply
  3 29 to income tax or sales and use taxes imposed at the option of
  3 30 a local government.
  3 31    THREE-FIFTHS MAJORITY TO ENACT NEW STATE TAX.  Sec. 2.  A
  3 32 bill that establishes a new state tax to be imposed by the
  3 33 state shall require the affirmative votes of at least three-
  3 34 fifths of the whole membership of each house of the General
  3 35 Assembly for passage.
  4  1    ENFORCEMENT OF THREE-FIFTHS MAJORITY REQUIREMENT.  Sec. 3.
  4  2 A lawsuit challenging the proper enactment of a bill pursuant
  4  3 to section 1 or 2 shall be filed no later than one year
  4  4 following the enactment.  Failure to file such a lawsuit
  4  5 within the one-year time limit shall negate the three-fifths
  4  6 majority requirement as it applies to the bill.
  4  7    Each bill to which section 1 or 2 applies shall include a
  4  8 separate provision describing the requirements for enactment
  4  9 prescribed by section 1 or 2.
  4 10    IMPLEMENTATION.  Sec. 4.  The General Assembly shall enact
  4 11 laws to implement sections 1 through 3.
  4 12    Sec. 3.  The foregoing proposed amendments to the
  4 13 Constitution of the State of Iowa are referred to the General
  4 14 Assembly to be chosen at the next general election for members
  4 15 of the General Assembly and the Secretary of State is directed
  4 16 to cause them to be published for three consecutive months
  4 17 previous to the date of that election as provided by law.  
  4 18                           EXPLANATION
  4 19    This resolution proposes two amendments within a new
  4 20 Article XIII to the Constitution of the State of Iowa which
  4 21 relate to state budgets.
  4 22    The first amendment establishes a state general fund
  4 23 expenditure limitation.  The amount of the limitation is 99
  4 24 percent of the adjusted revenue estimate.  The amendment
  4 25 defines adjusted revenue estimate and requires that that
  4 26 estimate be determined by a revenue estimating conference
  4 27 which is to be created by the General Assembly by law.  The
  4 28 amendment requires that the expenditure limitation be used by
  4 29 the Governor in preparation of the Governor's budget and by
  4 30 the General Assembly in the budget process.  The amendment
  4 31 also provides that, if a new revenue source is established and
  4 32 implemented, 95 percent of the estimate of that new revenue
  4 33 shall be included in the expenditure limitation.
  4 34    The first amendment also provides that the amount of any
  4 35 surplus which exceeds an amount equal to 10 percent of the
  5  1 adjusted revenue estimate may be included in the adjusted
  5  2 revenue estimate for the following fiscal year.  Any surplus
  5  3 which is equal to 10 percent or less of the amount of the
  5  4 adjusted revenue estimate may be included in the following
  5  5 year's adjusted revenue estimate if use of those funds is
  5  6 approved by a three-fifths majority of each house of the
  5  7 General Assembly.  The amendment also requires the State to
  5  8 use generally accepted accounting principles for state
  5  9 budgeting and accounting purposes.  The amendment provides
  5 10 that the General Assembly shall enact laws to implement the
  5 11 amendment.
  5 12    The second amendment contained in the resolution requires a
  5 13 three-fifths majority for certain tax law changes.  The
  5 14 amendment provides that any bill which enacts, amends, or
  5 15 repeals the state income tax or the state sales and use tax,
  5 16 and which causes, in the aggregate, an increase in state tax
  5 17 revenues, as determined by the General Assembly must be
  5 18 adopted by a three-fifths of the whole membership of each
  5 19 house of the General Assembly.  The amendment also requires a
  5 20 three-fifths majority vote of each house of the General
  5 21 Assembly in order to enact a new state tax to be imposed by
  5 22 the state.  A lawsuit challenging a bill pursuant to either
  5 23 three-fifths majority passage requirement must be filed no
  5 24 later than one year from the date of enactment of the bill.
  5 25 Finally, the amendment provides that the General Assembly
  5 26 shall enact laws to 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.  
  5 31 LSB 4341HV 77
  5 32 sc/jw/5
     

Text: HJR02004                          Text: HJR02006
Text: HJR02000 - HJR02099               Text: HJR Index
Bills and Amendments: General Index     Bill History: General Index

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