Text: HSB00234 Text: HSB00236 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 8.54, subsection 1, Code 2001, is
1 2 amended by adding the following new paragraph:
1 3 NEW PARAGRAPH. c. "Annual price index" means the change,
1 4 computed to two decimal places, between the preliminary price
1 5 index for the third quarter of the calendar year preceding the
1 6 calendar year in which the fiscal year starts and the revised
1 7 price index for the third quarter of the previous calendar
1 8 year as published in the same issue in which such preliminary
1 9 price index is first published. The price index used shall be
1 10 the state and local government chain-type price index used in
1 11 the quantity and price indexes for gross domestic product as
1 12 published by the United States department of commerce. The
1 13 annual price index shall not be less than zero and shall not
1 14 exceed four hundredths. The change shall then be added to one
1 15 to create a multiplier for the annual price index.
1 16 Sec. 2. Section 8.54, subsection 3, Code 2001, is amended
1 17 to read as follows:
1 18 3. Except as otherwise provided in this section, the state
1 19 general fund expenditure limitation for a fiscal year shall be
1 20 ninety-nine percent of the adjusted revenue estimate.
1 21 Commencing with the state general fund expenditure limitation
1 22 calculated for the fiscal year beginning July 1, 2002, the
1 23 initial expenditure limitation established for a fiscal year
1 24 shall not exceed the product of the prior fiscal year's final
1 25 expenditure limitation times the annual price index.
1 26 EXPLANATION
1 27 This bill establishes a growth rate limit for the state
1 28 general fund expenditure limitation under Code section 8.54.
1 29 The term "annual price index" is defined using the state
1 30 and local government chain-type price index used in the
1 31 quantity and price indexes for the gross domestic product as
1 32 published by the United States department of commerce. The
1 33 change in the index is then used to develop a multiplier that
1 34 is limited to a maximum increase of four percent.
1 35 Commencing with the state general fund expenditure
2 1 limitation calculated for the fiscal year beginning July 1,
2 2 2002, the initial expenditure limitation established for a
2 3 fiscal year prior to adjustment under law shall not exceed the
2 4 product of the prior fiscal year's final expenditure
2 5 limitation times the annual price index, as defined in the
2 6 bill.
2 7 Under current law, this initial amount may be adjusted to
2 8 incorporate any eligible ending balance carried forward from
2 9 the previous fiscal year and for new revenues and new
2 10 transfers.
2 11 LSB 3259HC 79
2 12 jp/cls/14
Text: HSB00234 Text: HSB00236 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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