Text: SJR00002 Text: SJR00000 - SJR00099 Text: SJR 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, having been adopted and 4 14 agreed to by the Seventy-seventh General Assembly, 1998 4 15 Session, thereafter duly published, and now adopted and agreed 4 16 to by the Seventy-eighth General Assembly in this joint 4 17 resolution, shall be submitted to the people of the State of 4 18 Iowa at a special election called for that purpose to be held 4 19 on Tuesday, the 29th of June of the year 1999, in the manner 4 20 required by the Constitution of the State of Iowa and the laws 4 21 of the State of Iowa. 4 22 EXPLANATION 4 23 This resolution proposes two amendments within a new 4 24 Article XIII to the Constitution of the State of Iowa which 4 25 relate to state budgets. 4 26 The first amendment establishes a state general fund 4 27 expenditure limitation. The amount of the limitation is 99 4 28 percent of the adjusted revenue estimate. The amendment 4 29 defines adjusted revenue estimate and requires that that 4 30 estimate be determined by a revenue estimating conference 4 31 which is to be created by the General Assembly by law. The 4 32 amendment requires that the expenditure limitation be used by 4 33 the Governor in preparation of the Governor's budget and by 4 34 the General Assembly in the budget process. The amendment 4 35 also provides that, if a new revenue source is established and 5 1 implemented, 95 percent of the estimate of that new revenue 5 2 shall be included in the expenditure limitation. 5 3 The first amendment also provides that the amount of any 5 4 surplus which exceeds an amount equal to 10 percent of the 5 5 adjusted revenue estimate may be included in the adjusted 5 6 revenue estimate for the following fiscal year. Any surplus 5 7 which is equal to 10 percent or less of the amount of the 5 8 adjusted revenue estimate may be included in the following 5 9 year's adjusted revenue estimate if use of those funds is 5 10 approved by a three-fifths majority of each house of the 5 11 General Assembly. The amendment also requires the State to 5 12 use generally accepted accounting principles for state 5 13 budgeting and accounting purposes. The amendment provides 5 14 that the General Assembly shall enact laws to implement the 5 15 amendment. 5 16 The second amendment contained in the resolution requires a 5 17 three-fifths majority for certain tax law changes. The 5 18 amendment provides that any bill which enacts, amends, or 5 19 repeals the state income tax or the state sales and use tax, 5 20 and which causes, in the aggregate, an increase in state tax 5 21 revenues, as determined by the General Assembly must be 5 22 adopted by a three-fifths vote of the whole membership of each 5 23 house of the General Assembly. The amendment also requires a 5 24 three-fifths majority vote of each house of the General 5 25 Assembly in order to enact a new state tax to be imposed by 5 26 the state. A lawsuit challenging a bill pursuant to either 5 27 three-fifths majority passage requirement must be filed no 5 28 later than one year from the date of enactment of the bill. 5 29 Finally, the amendment provides that the General Assembly 5 30 shall enact laws to implement the amendment. 5 31 The resolution, if adopted, provides for both amendments to 5 32 be submitted to the voters for their decision on ratification 5 33 at a special election called for that purpose. As required by 5 34 the Iowa Constitution, the voters will vote separately for or 5 35 against each of the two amendments. 6 1 LSB 1354XS 78 6 2 sc/jw/5.1
Text: SJR00002 Text: SJR00000 - SJR00099 Text: SJR Index Bills and Amendments: General Index Bill History: General Index
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