House Amendment 8552
PAG LIN
1 1 Amend House File 2531 as follows:
1 2 #1. Page 38, after line 1 by inserting:
1 3 <DIVISION ___
1 4 STATE EXPENDITURE LIMITATIONS
1 5 Sec. ___. Section 8.22A, Code 2009, is amended to
1 6 read as follows:
1 7 8.22A Revenue estimating conference.
1 8 1. The state revenue estimating conference is
1 9 created consisting of the governor or the governor's
1 10 designee, the director of the legislative services
1 11 agency or the director's designee, and a third member
1 12 agreed to by the other two.
1 13 2. The conference shall meet as often as deemed
1 14 necessary, but shall meet at least quarterly. The
1 15 conference may use sources of information deemed
1 16 appropriate. At each meeting, the conference shall
1 17 agree to estimates for both the current and succeeding
1 18 fiscal years for the general fund of the state, lottery
1 19 revenues to be available for disbursement, and from
1 20 gambling revenues and from interest earned on the cash
1 21 reserve fund and the economic emergency fund to be
1 22 deposited in the rebuild Iowa infrastructure fund.
1 23 3. By For purposes of the state general fund
1 24 expenditure limitation and other expenditure
1 25 limitations under section 8.54, by December 15 of each
1 26 fiscal year the conference shall agree to a revenue
1 27 estimate revenue estimates for the amounts of moneys
1 28 subject to an expenditure limitation under section
1 29 8.54 for the fiscal year beginning the following July
1 30 1. That The estimate amounts shall be used by the
1 31 governor in the preparation of the budget message
1 32 under section 8.22 and by the general assembly in
1 33 the budget process. If the conference agrees to a
1 34 different estimate at a later meeting which projects
1 35 a greater amount of revenue than the initial estimate
1 36 amount agreed to by December 15, the governor and the
1 37 general assembly shall continue to use the initial
1 38 estimate amount in the budget process for that fiscal
1 39 year. However, if the conference agrees to a different
1 40 estimate at a later meeting which projects a lesser
1 41 amount of revenue than the initial estimate amount,
1 42 the governor and the general assembly shall use the
1 43 lesser amount in the budget process for that fiscal
1 44 year. As used in this subsection, "later meeting"
1 45 means only those later meetings which are held prior
1 46 to the conclusion of the regular session of the
1 47 general assembly and, if the general assembly holds
1 48 an extraordinary session prior to the commencement of
1 49 the fiscal year to which the estimate applies, those
1 50 later meetings which are held before or during the
2 1 extraordinary session.
2 2 4. At the meeting in which the conference agrees
2 3 to the revenue estimate for the general fund of the
2 4 state for the following fiscal year in accordance with
2 5 the provisions of subsection 3, the conference shall
2 6 agree to an estimate for tax refunds payable from that
2 7 estimated revenue. The estimates required by this
2 8 subsection shall be used in determining the adjusted
2 9 revenue estimate under section 8.54.
2 10 5. At the meeting in which the conference agrees
2 11 to the revenue estimate for the general fund of the
2 12 state for the succeeding fiscal year in accordance
2 13 with the provisions of subsection 3, the conference
2 14 shall also agree to the following estimates which shall
2 15 be used by the governor in preparation of the budget
2 16 message under section 8.22 and the general assembly in
2 17 the budget process for the succeeding fiscal year:
2 18 a. The amount of lottery revenues that will be
2 19 deposited in the general fund for the following fiscal
2 20 year to be available for disbursement following the
2 21 deductions made pursuant to section 99G.39, subsection
2 22 1. This estimate shall be included in the conference's
2 23 estimate of general fund revenues and shall be
2 24 calculated as the sum of the following, divided by
2 25 seven, as agreed to by the conference:
2 26 (1) The conference's estimate of the amount of
2 27 lottery revenues to be deposited in the general fund
2 28 for the succeeding fiscal year.
2 29 (2) The conference's estimate of the amount of
2 30 lottery revenues to be deposited in the general fund
2 31 for the current fiscal year.
2 32 (3) The actual amount of the lottery revenues
2 33 deposited in the general fund for the five most
2 34 recently completed fiscal years, adjusted for inflation
2 35 through the close of the most recently completed fiscal
2 36 year.
2 37 b. The amount of revenue for the following fiscal
2 38 year from gambling revenues and from interest earned on
2 39 the cash reserve fund and the economic emergency fund
2 40 to be deposited in the rebuild Iowa infrastructure fund
2 41 under section 8.57, subsection 6, paragraph "e".
2 42 c. The amount of accruals of those revenues
2 43 collected by or due from entities other than the
2 44 state on or before June 30 of the fiscal year but not
2 45 remitted to the state until after June 30.
2 46 d. The amount of accrued lottery revenues collected
2 47 on or before June 30 of the fiscal year but not
2 48 transferred to the general fund of the state until
2 49 after June 30.
2 50 6. At the meeting in which the conference agrees to
3 1 the revenue estimates for the succeeding fiscal year
3 2 in accordance with subsection 3, the conference shall
3 3 agree to the amount available in the cash reserve fund
3 4 as of the close of the previous fiscal year that may be
3 5 appropriated for nonrecurring emergency expenditures as
3 6 provided in section 8.56, subsection 5.
3 7 Sec. ___. Section 8.54, Code 2009, is amended to
3 8 read as follows:
3 9 8.54 General fund expenditure limitation and other
3 10 expenditure limitations.
3 11 1. For the purposes of section 8.22A, this section,
3 12 and sections 8.55 through 8.57:
3 13 a. "Adjusted revenue estimate" means the appropriate
3 14 revenue estimate for the general fund for the following
3 15 fiscal year as determined by the revenue estimating
3 16 conference under section 8.22A, subsection 3, adjusted
3 17 by subtracting estimated tax refunds payable from
3 18 that estimated revenue, adding accruals determined in
3 19 accordance with section 8.22A, subsection 5, and as
3 20 determined by the conference, adding any new revenues
3 21 which may be considered to be eligible for deposit in
3 22 the general fund.
3 23 b. "Inflation" means the percentage change in the
3 24 consumer price index for all urban consumers, midwest
3 25 region, published by the United States department of
3 26 labor, bureau of labor statistics.
3 27 c. "New revenues" means moneys which are received
3 28 by the general fund of the state due to increased
3 29 tax rates and fees or newly created taxes and fees
3 30 over and above those moneys which are received due to
3 31 state taxes and fees which are in effect as of January
3 32 1 following the December state revenue estimating
3 33 conference. "New revenues" also includes moneys
3 34 received by the general fund of the state due to new
3 35 transfers over and above those moneys received by the
3 36 general fund of the state due to transfers which are
3 37 in effect as of January 1 following the December state
3 38 revenue estimating conference. The department of
3 39 management shall obtain concurrence from the revenue
3 40 estimating conference on the eligibility of transfers
3 41 to the general fund of the state which are to be
3 42 considered as new revenue in determining the state
3 43 general fund expenditure limitation.
3 44 2. a. There is created a state general fund
3 45 expenditure limitation for each fiscal year calculated
3 46 as provided in this section.
3 47 b. There is created a gambling revenue expenditure
3 48 limitation calculated as provided in this section. The
3 49 limitation applies to revenues received by the state
3 50 that are attributable to gambling and available for
4 1 appropriation but are not credited to the general fund
4 2 of state. The gambling revenue expenditure limitation
4 3 does not include lottery revenue.
4 4 c. An expenditure limitation shall be used for the
4 5 portion of the budget process commencing on the date
4 6 the revenue estimating conference agrees to a revenue
4 7 estimate for the following fiscal year in accordance
4 8 with section 8.22A, subsection 3, and ending with
4 9 the governor's final approval or disapproval of the
4 10 appropriations bills applicable to that fiscal year
4 11 that were passed prior to July 1 of that fiscal year in
4 12 a regular or extraordinary legislative session.
4 13 3. Except as otherwise provided in this section,
4 14 the state general fund expenditure limitation for
4 15 a fiscal year shall be ninety=nine percent of the
4 16 adjusted revenue estimate. of the general fund average,
4 17 as agreed to by the revenue estimating conference. The
4 18 general fund average for a fiscal year is the sum of
4 19 the following, divided by seven:
4 20 a. The adjusted revenue estimate for the succeeding
4 21 fiscal year.
4 22 b. The revenue estimate for the current fiscal
4 23 year, adjusted by subtracting estimated tax refunds
4 24 payable from that estimated revenue and as determined
4 25 by the conference, adding any new revenues which may be
4 26 considered to be eligible for deposit in the general
4 27 fund.
4 28 c. The net revenue for the general fund of the
4 29 state for the five most recently completed fiscal
4 30 years, adjusted by subtracting tax refunds paid from
4 31 the revenue and adjusted for inflation through the
4 32 close of the most recently completed fiscal year.
4 33 4. The gambling revenue expenditure limitation
4 34 for a fiscal year shall be the sum of the following,
4 35 divided by seven, as agreed to by the revenue
4 36 estimating conference:
4 37 a. The gambling revenues estimate for the
4 38 succeeding fiscal year.
4 39 b. The gambling revenues estimate for the current
4 40 fiscal year.
4 41 c. The net gambling revenues for the five most
4 42 recently completed fiscal years, adjusted for inflation
4 43 through the close of the most recently completed fiscal
4 44 year.
4 45 4. 5. The state general fund expenditure
4 46 limitation amount and the gambling revenue expenditure
4 47 limitation amount provided for in this section shall
4 48 be used by the governor in the preparation of the
4 49 budget under section 8.22 and approval of the budget
4 50 and by the general assembly in the budget process.
5 1 If a source for new revenues is proposed, the budget
5 2 revenue projection used for that new revenue source
5 3 for the period beginning on the effective date of the
5 4 new revenue source and ending in the fiscal year in
5 5 which the source is included in the revenue base shall
5 6 be an amount determined by subtracting estimated tax
5 7 refunds payable from the projected revenue from that
5 8 new revenue source, multiplied by ninety=five percent.
5 9 If a new revenue source is established and implemented
5 10 that would affect an expenditure limitation amount,
5 11 the original state general fund expenditure limitation
5 12 amount provided for in subsection 3 shall be readjusted
5 13 to include ninety=five percent of the estimated revenue
5 14 from the new revenue source.
5 15 5. For fiscal years in which section 8.55,
5 16 subsection 2, results in moneys being transferred
5 17 to the general fund, the original state general
5 18 fund expenditure limitation amount provided for in
5 19 subsection 3 shall be readjusted to include the moneys
5 20 which are so transferred.
5 21 6. The scope of the expenditure
5 22 limitation limitations
5 23 under subsection 3 this section shall not encompass
5 24 federal funds, donations, constitutionally dedicated
5 25 moneys, moneys appropriated from the cash reserve
5 26 fund or Iowa economic emergency fund, and moneys in
5 27 expenditures from state retirement system moneys.
5 28 7. The governor shall transmit to the general
5 29 assembly, in accordance with section 8.21, a
5 30 budget which does not exceed the state general fund
5 31 expenditure limitation expenditure limitations under
5 32 this section. The general assembly shall pass a
5 33 budget which does not exceed the state general fund
5 34 expenditure limitation expenditure limitations. The
5 35 governor shall not transmit a budget with recommended
5 36 appropriations in excess of the state general fund
5 37 expenditure limitation expenditure limitations and
5 38 the general assembly shall not pass a budget with
5 39 appropriations in excess of the state general fund
5 40 expenditure limitation expenditure limitations. The
5 41 governor shall not approve or disapprove appropriation
5 42 bills or items of appropriation bills passed by the
5 43 general assembly in a manner that would cause the
5 44 final budget approved by the governor to exceed the
5 45 state general fund expenditure limitation expenditure
5 46 limitations. In complying with the requirements
5 47 of this subsection, the governor and the general
5 48 assembly shall not rely on any anticipated reversion
5 49 of appropriations in order to meet the state general
5 50 fund any expenditure limitation.
6 1 Sec. ___. Section 8.55, subsection 2, paragraph a,
6 2 Code 2009, is amended to read as follows:
6 3 a. The maximum balance of the fund is the amount
6 4 equal to two five and one=half percent of the adjusted
6 5 revenue estimate for the fiscal year. If the amount of
6 6 moneys in the Iowa economic emergency fund is equal to
6 7 the maximum balance, moneys in excess of this amount
6 8 shall be transferred to the general fund property tax
6 9 equity and relief fund created in section 257.16A.
6 10 Sec. ___. Section 8.56, subsections 2 and 3, Code
6 11 2009, are amended to read as follows:
6 12 2.a. Moneys shall be credited to the cash reserve
6 13 fund from all of the following:
6 14 (1) Appropriations made to the fund pursuant to
6 15 section 8.57.
6 16 (2) The state's share of the proceeds under chapter
6 17 809A.
6 18 (3) Moneys collected in the settlement or
6 19 prosecution of a claim by the state that are not
6 20 otherwise specifically allocated in accordance with law
6 21 to another fund.
6 22 (4) Other moneys designated by law or by the
6 23 executive council as one=time revenues and which are
6 24 not otherwise specifically allocated by law to another
6 25 fund.
6 26 b. The maximum balance of the cash reserve fund is
6 27 the amount equal to the cash reserve goal percentage,
6 28 as defined in section 8.57, multiplied by the adjusted
6 29 revenue estimate for the general fund of the state for
6 30 the current fiscal year.
6 31 3. The moneys in the cash reserve fund shall only
6 32 be used pursuant to an appropriation made by the
6 33 general assembly. An Except as provided in subsection
6 34 5, an appropriation shall be made in accordance with
6 35 subsection 4 from the cash reserve fund only for the
6 36 fiscal year in which the appropriation is made. The
6 37 moneys shall only be appropriated by the general
6 38 assembly for nonrecurring emergency expenditures and
6 39 shall not be appropriated for payment of any collective
6 40 bargaining agreement or arbitrator's decision
6 41 negotiated or awarded under chapter 20. Except as
6 42 provided in section 8.58, the cash reserve fund shall
6 43 be considered a special account for the purposes of
6 44 section 8.53 in determining the cash position of the
6 45 general fund of the state for the payment of state
6 46 obligations.
6 47 Sec. ___. Section 8.56, Code 2009, is amended by
6 48 adding the following new subsection:
6 49 NEW SUBSECTION. 5. If the adjusted revenue
6 50 estimate for the succeeding fiscal year is less than
7 1 ninety=eight percent of the general fund average for
7 2 that fiscal year under section 8.54, subsection 3, an
7 3 appropriation for nonrecurring emergency expenditures
7 4 from the cash reserve fund may be made to provide
7 5 additional funding for the succeeding fiscal year.
7 6 However, the amount of such appropriation shall not
7 7 exceed the difference of ninety=eight percent of
7 8 such general fund average minus the adjusted revenue
7 9 estimate for the succeeding fiscal year. The amount of
7 10 such appropriation shall not exceed twenty=five percent
7 11 of the ending balance in the cash reserve fund in the
7 12 most recently completed fiscal year.
7 13 Sec. ___. Section 284.3A, Code Supplement 2009, is
7 14 amended by adding the following new subsection:
7 15 NEW SUBSECTION. 4. The teacher salary supplement
7 16 district cost as calculated under section 257.10,
7 17 subsection 9, and the area education agency teacher
7 18 salary supplement district cost as calculated under
7 19 section 257.37A, subsection 1, are not subject to a
7 20 uniform reduction in accordance with section 8.31.
7 21 Notwithstanding any provision of law to the contrary,
7 22 if the governor orders budget reductions in accordance
7 23 with section 8.31, a collective bargaining agreement
7 24 negotiated under chapter 20 and in effect on the date
7 25 the budget reduction was ordered shall be reopened
7 26 and renegotiated by the boards of directors of school
7 27 districts and area education agencies and the employee
7 28 organizations representing the employees of the school
7 29 districts and area education agencies.
7 30 Sec. ___. Section 809A.17, subsection 3, Code 2009,
7 31 is amended to read as follows:
7 32 3. The state share of the cash proceeds from
7 33 forfeited property shall be credited to the cash
7 34 reserve fund. Forfeited property that is not cash
7 35 or sold may be used by the department of justice in
7 36 the enforcement of the criminal law. The department
7 37 may give, sell, or trade forfeited property that is
7 38 not cash or sold to any other state agency or to any
7 39 other law enforcement agency within the state if, in
7 40 the opinion of the attorney general, it the forfeited
7 41 property will enhance law enforcement within the state.
7 42 Sec. ___. APPLICABILITY. This division of this Act
7 43 applies beginning July 1, 2010, for the budget process
7 44 for the succeeding fiscal year.>
7 45 #2. By renumbering as necessary.
RANTS of Woodbury
ALONS of Sioux
ANDERSON of Page
ARNOLD of Lucas
BAUDLER of Adair
CHAMBERS of O'Brien
COWNIE of Polk
DE BOEF of Keokuk
DEYOE of Story
DOLECHECK of Ringgold
DRAKE of Cass
FORRISTALL of Pottawattamie
GRASSLEY of Butler
HAGENOW of Polk
HEATON of Henry
HELLAND of Polk
HORBACH of Tama
HUSEMAN of Cherokee
KAUFMANN of Cedar
KOESTER of Polk
LUKAN of Dubuque
MAY of Dickinson
L. MILLER of Scott
S. OLSON of Clinton
PAULSEN of Linn
PETTENGILL of Benton
RAECKER of Polk
RAYHONS of Hancock
ROBERTS of Carroll
SANDS of Louisa
SCHULTE of Linn
SCHULTZ of Crawford
SODERBERG of Plymouth
SORENSON of Warren
STRUYK of Pottawattamie
SWEENEY of Hardin
TJEPKES of Webster
TYMESON of Madison
UPMEYER of Hancock
VAN ENGELENHOVEN of Marion
WAGNER of Linn
WATTS of Dallas
WINDSCHITL of Harrison
WORTHAN of Buena Vista
HF2531.2621 (1) 83
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