Text: HSB00713 Text: HSB00715 Text: HSB00700 - HSB00799 Text: HSB 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 all the members 2 28 elected to each branch of the General Assembly. For purposes 2 29 of this section, "surplus" means the cumulative excess of 2 30 revenues and other financing sources over expenditures and 2 31 other financing uses for the general fund at the end of a 2 32 fiscal year. 2 33 6. The scope of the state general fund expenditure 2 34 limitation under subsection 3 shall not include federal funds, 2 35 donations, constitutionally dedicated moneys, and moneys in 3 1 expenditures 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. REFERRAL AND PUBLICATION. The foregoing amendment 3 15 to the Constitution of the State of Iowa is referred to the 3 16 General Assembly to be chosen at the next general election for 3 17 members of the General Assembly, and the Secretary of State is 3 18 directed to cause the same to be published for three 3 19 consecutive months previous to the date of that election as 3 20 provided by law. 3 21 EXPLANATION 3 22 This resolution proposes an amendment within a new Article 3 23 XIII to the Constitution of the State of Iowa which relates to 3 24 state budgets. 3 25 The amendment establishes a state general fund expenditure 3 26 limitation. The amount of the limitation is 99 percent of the 3 27 adjusted revenue estimate. The amendment defines adjusted 3 28 revenue estimate and requires that the estimate be determined 3 29 by a revenue estimating conference which is to be created by 3 30 the General Assembly by law. The amendment requires that the 3 31 expenditure limitation be used by the Governor in preparation 3 32 of the Governor's budget and by the General Assembly in the 3 33 budget process. The amendment also provides that, if a new 3 34 revenue source is established and implemented, 95 percent of 3 35 the estimate of that new revenue shall be included in the 4 1 expenditure limitation. 4 2 The amendment also provides that the amount of any surplus 4 3 which exceeds an amount equal to 10 percent of the adjusted 4 4 revenue estimate may be included in the adjusted revenue 4 5 estimate for the following fiscal year. Any surplus which is 4 6 equal to 10 percent or less of the amount of the adjusted 4 7 revenue estimate may be included in the following year's 4 8 adjusted revenue estimate if use of those funds is approved by 4 9 a three-fifths majority of all the members elected to each 4 10 house of the General Assembly. The amendment also requires 4 11 the State to use generally accepted accounting principles for 4 12 state budgeting and accounting purposes. The amendment 4 13 provides that the General Assembly shall enact laws to 4 14 implement the amendment. 4 15 The resolution, if adopted, would be referred to the next 4 16 general assembly before being submitted to the electorate for 4 17 ratification. 4 18 LSB 7100YC 79 4 19 sc/sh/8
Text: HSB00713 Text: HSB00715 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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