Text: HJR02004 Text: HJR02006 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 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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