Text: HF00141 Text: HF00143 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 8.22A, subsection 3, Code 2003, is 1 2 amended to read as follows: 1 3 3. By December 15 of each fiscal year the conference shall 1 4 agree to a revenue estimate for the fiscal year beginning the 1 5 following July 1. That estimate shall be used by the governor 1 6 in the preparation of the budget message under section 8.22 1 7 and by the general assembly in the budget process. In 1 8 addition, the conference shall agree to a projection of the 1 9 amount that will be transferred to the general fund of the 1 10 state from the Iowa economic emergency fund pursuant to 1 11 section 8.55, subsection 2, and as a result may be 1 12 appropriated for the fiscal year beginning the following July 1 13 1. If the conference agrees at a later meeting to a different 1 14estimate at a later meeting which projects a greater amount of1 15revenueamount to be transferred than the initialestimate1 16 projected amount agreed to by December 15, the governor and 1 17 the general assembly shall continue to use the initial 1 18estimateprojected amount in the budget process for that 1 19 fiscal year. However, if the conference agrees at a later 1 20 meeting to adifferent estimate at a later meeting which1 21projects alesser amountof revenuethan the initialestimate1 22 projected amount, the governor and the general assembly shall 1 23 use the lesser amount in the budget process for that fiscal 1 24 year. As used in this subsection, "later meeting" means only 1 25 those later meetings which are held prior to the conclusion of 1 26 the regular session of the general assembly. 1 27 Sec. 2. Section 8.22A, subsection 5, Code 2003, is amended 1 28 by adding the following new paragraphs: 1 29 NEW PARAGRAPH. e. The amount of a revenue reduction for a 1 30 fiscal year. 1 31 NEW PARAGRAPH. f. The amount of revenue increases to the 1 32 general fund of the state for the current and succeeding 1 33 fiscal years with the portion that is due to new revenue 1 34 identified separately. 1 35 Sec. 3. Section 8.54, subsection 1, Code 2003, is amended 2 1 to read as follows: 2 2 1. For the purposes of section 8.22A, this section, and 2 3 sections 8.55 through 8.57: 2 4 a. "Adjusted revenue estimate" means the appropriate 2 5 revenue estimate for the general fund for the following fiscal 2 6 year as determined by the revenue estimating conference under 2 7 section 8.22A, subsection 3, adjusted by subtracting estimated 2 8 tax refunds payable from that estimated revenue and as 2 9 determined by the conference, adding any new revenues which 2 10 may be considered to be eligible for deposit in the general 2 11 fund. 2 12 b. "Adjusted revenue increase estimate" means the 2 13 appropriate estimate for revenue increase to the general fund 2 14 for the following fiscal year as determined by the revenue 2 15 estimating conference, adjusted by subtracting estimated tax 2 16 refunds payable from that estimated revenue increase. To the 2 17 extent not included in the net revenue credited to the general 2 18 fund of the state in the most recently completed fiscal year, 2 19 previously enacted new revenues shall be included in the 2 20 estimate. 2 21 c. "Net revenue" means the actual amount of revenue 2 22 credited to the general fund of the state for a fiscal year, 2 23 as adjusted by subtracting tax refunds paid from that revenue. 2 24b.d. "New revenues" means moneys which are received by 2 25 the state due to increased tax rates and fees or newly created 2 26 taxes and fees over and above those moneys which are received 2 27 due to state taxes and fees which are in effect as of January 2 28 1 following the December state revenue estimating conference 2 29 meeting. "New revenues" also includes moneys projected to be 2 30 received by the general fund of the state due to new transfers 2 31 over and above those moneys received by the general fund of 2 32 the state due to transfers which are in effect as of January 1 2 33 following the December state revenue estimating conference 2 34 meeting. The department of management shall obtain 2 35 concurrence from the revenue estimating conference on the 3 1 eligibility of transfers to the general fund of the state 3 2 which are to be considered as new revenue in determining the 3 3 state general fund expenditure limitation. 3 4 e. "Revenue reduction" means a reduction in revenue to the 3 5 general fund of the state projected for a fiscal year due to a 3 6 statutory reduction or elimination of a tax or fee that is 3 7 enacted after the initial expenditure limitation amount for 3 8 that fiscal year was established. 3 9 f. "State general fund expenditure limitation" or 3 10 "expenditure limitation" means the state general fund 3 11 expenditure limitation computed in accordance with this 3 12 section. 3 13 Sec. 4. Section 8.54, subsections 3, 4, and 5, Code 2003, 3 14 are amended to read as follows: 3 15 3. Except as otherwise provided in this section, the state 3 16 general fund expenditure limitation for a fiscal year shall be 3 17ninety-nine percent of the adjusted revenue estimatecomputed 3 18 in accordance with this section at a meeting of the revenue 3 19 estimating conference held by December 15 of the fiscal year 3 20 preceding the fiscal year to which the expenditure limitation 3 21 applies. The expenditure limitation shall be equal to the sum 3 22 of the following: 3 23 a. One hundred percent of the net revenue credited to the 3 24 general fund of the state in the most recently completed 3 25 fiscal year. 3 26 b. Ninety percent of the adjusted revenue increase 3 27 estimate for the following fiscal year. 3 28 c. Ninety percent of the amount projected by the revenue 3 29 estimating conference under section 8.22A that will be 3 30 transferred to the general fund of the state from the Iowa 3 31 economic emergency fund pursuant to section 8.55, subsection 3 32 2, for the fiscal year to which the expenditure limitation 3 33 applies. 3 34 4. a. The state general fund expenditure limitation 3 35 amount provided for in this section shall be used by the 4 1 governor in the preparation of the budget under section 8.22 4 2 and approval of the budget and by the general assembly in the 4 3 budget process. An amount equal to that portion of the 4 4 expenditure limitation attributable to subsection 3, 4 5 paragraphs "b" and "c", shall be considered a contingent 4 6 funding amount. As part of the expenditure limitation 4 7 requirements under this section, unless the total 4 8 appropriations recommended by the governor or passed by the 4 9 general assembly are less than the expenditure limitation for 4 10 a fiscal year, the governor's budget recommendations under 4 11 section 8.22 and the general assembly in passage of the budget 4 12 shall incorporate contingent appropriations at least equal to 4 13 the contingent funding amount. If the total of the 4 14 appropriations recommended or passed is less than the 4 15 expenditure limitation, the amount of contingent 4 16 appropriations otherwise required may be reduced accordingly. 4 17 The governor and the general assembly shall identify 4 18 priorities for implementation of the contingent 4 19 appropriations. 4 20 b. If a source for new revenues is proposed, the budget 4 21 revenue projection used for that new revenue source for the 4 22 period beginning on the effective date of the new revenue 4 23 source and ending in the fiscal year in which the source is 4 24 included in the revenue base shall be an amount determined by 4 25 subtracting estimated tax refunds payable from the projected 4 26 revenue from that new revenue source, multiplied byninety-4 27fiveninety percent. If a new revenue source is established 4 28 and implemented, the original state general fund expenditure 4 29 limitation amount provided for in subsection 3 shall be 4 30readjusted to include ninety-fiverevised by adding ninety 4 31 percent of the estimated revenue from the new revenue source. 4 32 c. If a revenue reduction affecting the original state 4 33 general fund expenditure limitation computed in subsection 3 4 34 is enacted, the original expenditure limitation shall be 4 35 revised by subtracting one hundred percent of the revenue 5 1 reduction amount. 5 2 5.For fiscal years in which section 8.55, subsection 2,5 3results in moneys being transferred to the general fund, the5 4original state general fund expenditure limitation amount5 5provided for in subsection 3 shall be readjusted to include5 6the moneys which are so transferredIf the revenue estimating 5 7 conference agrees under section 8.22A to a projection that a 5 8 lesser amount of revenue will be transferred to the general 5 9 fund of the state from the Iowa economic emergency fund than 5 10 originally projected, the original state general fund 5 11 expenditure limitation computed in accordance with subsection 5 12 3 shall be revised to reflect the lesser amount, as adjusted 5 13 by the percentage specified in subsection 3, paragraph "c". 5 14 Sec. 5. APPLICABILITY. This Act is first applicable to 5 15 the budget for the fiscal year beginning July 1, 2004, and 5 16 ending June 30, 2005. 5 17 EXPLANATION 5 18 This bill revises the requirements for the state general 5 19 fund expenditure limitation. The initial expenditure 5 20 limitation would still be established for the succeeding 5 21 fiscal year at the time of the revenue estimating conference 5 22 meeting held by December 15 as it is in current law. Instead 5 23 of being based upon projected revenue for the succeeding 5 24 fiscal year, the expenditure limitation would be computed 5 25 based upon 100 percent of net revenue for the general fund in 5 26 the most recently completed fiscal year plus 90 percent of the 5 27 adjusted revenue increase estimate for the succeeding fiscal 5 28 year and 90 percent of the projected amount that will be 5 29 transferred to the state general fund from the Iowa economic 5 30 emergency fund due to that fund reaching its maximum balance. 5 31 The bill provides that the portion of the expenditure 5 32 limitation amount attributable to 90 percent of the adjusted 5 33 revenue increase estimate plus 90 percent of the amount 5 34 projected to be transferred from the Iowa economic emergency 5 35 fund to the general fund is to be considered to be a 6 1 contingent funding amount. As part of the expenditure 6 2 limitation budgeting requirements, except when less than the 6 3 entire amount of the expenditure limitation is appropriated, 6 4 the governor's budget recommendations and the general assembly 6 5 in passage of the budget are to incorporate contingent 6 6 appropriations at least equal to the contingent funding 6 7 amount. If a budget does not appropriate the entire amount of 6 8 the expenditure limitation, the amount of contingent 6 9 appropriations otherwise required may be reduced accordingly. 6 10 In addition, the governor and the general assembly shall 6 11 identify priorities for implementation of the contingent 6 12 appropriations. 6 13 Code section 8.22A, relating to the revenue estimating 6 14 conference, is amended. The conference remains responsible 6 15 for making budget estimates that are used in the budget 6 16 process; however, language requiring the overall revenue 6 17 estimate to be used in establishing the expenditure limitation 6 18 is eliminated. New requirements are established for the 6 19 conference to estimate the amount that will be transferred to 6 20 the general fund from the Iowa economic emergency fund; the 6 21 amount of an enacted revenue reduction's effect to reduce 6 22 revenues available for expenditure under the previously 6 23 computed state general fund expenditure limitation for a 6 24 fiscal year; and the amount of revenue increases to the 6 25 general fund for the current and succeeding fiscal years, with 6 26 the amount of revenue increase with the portion that is due to 6 27 growth identified separately. 6 28 Code section 8.54, relating to the state general fund 6 29 expenditure limitation, is extensively amended. The bill 6 30 defines the terms "adjusted revenue increase estimate", 6 31 "expenditure limitation", "net revenue", and "revenue 6 32 reduction", and requires the revenue estimating conference to 6 33 compute the initial expenditure limitation amount for a fiscal 6 34 year. If certain factors change after the initial amount is 6 35 established, the initial expenditure limitation amount is to 7 1 be revised. The governor is required to revise the submitted 7 2 budget if the revision results in a lower amount while the 7 3 general assembly is in session. 7 4 The provisions of the bill are first applicable to the 7 5 budget for fiscal year 2004-2005. 7 6 LSB 1291YH 80 7 7 jp/cf/24.1
Text: HF00141 Text: HF00143 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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