Text: HJR00002 Text: HJR00000 - HJR00099 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 received by the state due
1 22 to increased tax rates or fees or newly created taxes or fees
1 23 over and above those moneys received due to state taxes or
1 24 fees that are in effect as of January 1 following the most
1 25 recent state revenue estimating conference. "New revenues"
1 26 also includes moneys received by the general fund due to new
1 27 transfers over and above those moneys received by the general
1 28 fund due to transfers that are in effect as of January 1
1 29 following the most recent state revenue estimating conference.
1 30 The state revenue estimating conference shall determine the
1 31 eligibility of transfers to the general fund that are to be
1 32 considered as new revenue in determining the state general
1 33 fund expenditure limitation.
1 34 d. "Surplus" means the cumulative excess of revenues and
1 35 other financing sources over expenditures and other financing
2 1 uses for the general fund at the end of a fiscal year.
2 2 2. A state general fund expenditure limitation is created
2 3 and calculated in subsection 3, for each fiscal year beginning
2 4 on or after July 1 following the effective date of this
2 5 section.
2 6 3. Except as otherwise provided in this section, the state
2 7 general fund expenditure limitation for a fiscal year shall be
2 8 ninety-nine percent of the adjusted revenue estimate.
2 9 4. The state general fund expenditure limitation shall be
2 10 used by the Governor in the preparation of the budget and by
2 11 the General Assembly in the budget process. If a new revenue
2 12 source is proposed, the budget revenue projection used for
2 13 that new revenue source for the period beginning on the
2 14 effective date of the new revenue source and ending in the
2 15 fiscal year in which the source is included in the adjusted
2 16 revenue estimate shall be ninety-five percent of the amount
2 17 remaining after subtracting estimated refunds payable from the
2 18 projected revenue from that source. If a new revenue source
2 19 is established and implemented, the original state general
2 20 fund expenditure limitation amount provided for in subsection
2 21 3 shall be readjusted to include ninety-five percent of the
2 22 estimated revenue from that source.
2 23 5. Any surplus existing at the end of a fiscal year that
2 24 exceeds ten percent of the adjusted revenue estimate for that
2 25 fiscal year shall be included in the adjusted revenue estimate
2 26 for the following fiscal year. Any surplus equal to ten
2 27 percent or less of the adjusted revenue estimate for a fiscal
2 28 year may be included in the adjusted revenue estimate for the
2 29 following fiscal year if approved in a bill receiving the
2 30 affirmative votes of at least three-fifths of the whole
2 31 membership of each house of the General Assembly.
2 32 6. The scope of the expenditure limitation under
2 33 subsection 3 shall not include federal funds, donations,
2 34 constitutionally dedicated moneys, and moneys in expenditures
2 35 from a state retirement system.
3 1 7. The Governor shall submit and the General Assembly
3 2 shall pass a budget which does not exceed the state general
3 3 fund expenditure limitation.
3 4 8. The Governor shall not submit and the General Assembly
3 5 shall not pass a budget which in order to balance assumes
3 6 reversion of any part of the total of the appropriations
3 7 included in the budget.
3 8 9. The state shall use consistent standards, in accordance
3 9 with generally accepted accounting principles, for all state
3 10 budgeting and accounting purposes.
3 11 10. The General Assembly shall enact laws to implement
3 12 this section.
3 13 Sec. 2. The following amendment to the Constitution of the
3 14 State of Iowa is proposed:
3 15 The Constitution of the State of Iowa is amended by adding
3 16 the following new sections to new Article XIII:
3 17 ARTICLE XIII.
3 18 THREE-FIFTHS MAJORITY FOR TAX LAW CHANGES.
3 19 THREE-FIFTHS MAJORITY TO INCREASE TAXES. Section 1. A
3 20 bill containing provisions enacting, amending, or repealing
3 21 the state income tax or enacting, amending, or repealing the
3 22 state sales and use taxes, in which the aggregate fiscal
3 23 impact of those provisions relating to those taxes results in
3 24 a net increase in state tax revenues, as determined by the
3 25 General Assembly, shall require the affirmative votes of at
3 26 least three-fifths of the whole membership of each house of
3 27 the General Assembly for passage. This section does not apply
3 28 to income tax or sales and use taxes imposed at the option of
3 29 a local government.
3 30 THREE-FIFTHS MAJORITY TO ENACT NEW STATE TAX. Sec. 2. A
3 31 bill that establishes a new state tax to be imposed by the
3 32 state shall require the affirmative votes of at least three-
3 33 fifths of the whole membership of each house of the General
3 34 Assembly for passage.
3 35 ENFORCEMENT OF THREE-FIFTHS MAJORITY REQUIREMENT. Sec. 3.
4 1 A lawsuit challenging the proper enactment of a bill pursuant
4 2 to section 1 or 2 shall be filed no later than one year
4 3 following the enactment. Failure to file such a lawsuit
4 4 within the one-year time limit shall negate the three-fifths
4 5 majority requirement as it applies to the bill.
4 6 Each bill to which section 1 or 2 applies shall include a
4 7 separate provision describing the requirements for enactment
4 8 prescribed by section 1 or 2.
4 9 IMPLEMENTATION. Sec. 4. The General Assembly shall enact
4 10 laws to implement sections 1 through 3.
4 11 Sec. 3. The foregoing proposed amendments to the
4 12 Constitution of the State of Iowa are referred to the General
4 13 Assembly to be chosen at the next general election for members
4 14 of the General Assembly and the Secretary of State is directed
4 15 to cause them to be published for three consecutive months
4 16 previous to the date of that election as provided by law.
4 17 EXPLANATION
4 18 This resolution proposes two amendments within a new
4 19 Article XIII to the Constitution of the State of Iowa which
4 20 relate to state budgets.
4 21 The first amendment establishes a state general fund
4 22 expenditure limitation. The amount of the limitation is 99
4 23 percent of the adjusted revenue estimate. The amendment
4 24 defines adjusted revenue estimate and requires that that
4 25 estimate be determined by a revenue estimating conference
4 26 which is to be created by the general assembly by law. The
4 27 amendment requires that the expenditure limitation be used by
4 28 the governor in preparation of the governor's budget and by
4 29 the general assembly in the budget process. The amendment
4 30 also provides that, if a new revenue source is established and
4 31 implemented, 95 percent of the estimate of that new revenue
4 32 shall be included in the expenditure limitation.
4 33 The first amendment also provides that the amount of any
4 34 surplus that exceeds an amount equal to 10 percent of the
4 35 adjusted revenue estimate shall be included in the adjusted
5 1 revenue estimate for the following fiscal year. Any surplus
5 2 which is equal to 10 percent or less of the amount of the
5 3 adjusted revenue estimate may be included in the following
5 4 year's adjusted revenue estimate if use, of those funds is
5 5 approved by a three-fifths majority of each house of the
5 6 general assembly. The amendment also requires the state to
5 7 use generally accepted accounting principles for state
5 8 budgeting and accounting purposes. The amendment provides
5 9 that the general assembly shall enact laws to implement the
5 10 amendment.
5 11 The second amendment contained in the resolution requires a
5 12 three-fifths majority vote of each house for certain tax law
5 13 changes. The amendment provides that any bill that enacts,
5 14 amends, or repeals the state income tax or the state sales and
5 15 use tax, and which causes, in the aggregate, an increase in
5 16 state tax revenues, as determined by the general assembly,
5 17 must be adopted by at least three-fifths of the whole
5 18 membership of each house of the general assembly. The
5 19 amendment also requires a three-fifths majority vote of each
5 20 house of the general assembly in order to enact a new state
5 21 tax to be imposed by the state. A lawsuit challenging
5 22 enactment of a bill subject to either three-fifths majority
5 23 passage requirement must be filed no later than one year from
5 24 the date of enactment of the bill. Finally, the amendment
5 25 provides that the general assembly shall enact laws to
5 26 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 1155YH 80
5 32 sc/cl/14
Text: HJR00002 Text: HJR00000 - HJR00099 Text: HJR Index Bills and Amendments: General Index Bill History: General Index
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