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Senate Joint Resolution 2 - IntroducedA Bill ForA Joint Resolution 1proposing an amendment to the Constitution
2of the State of Iowa relating to the state budget by
3creating a state general fund expenditure limitation.
4BE IT RESOLVED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. The following amendment to the Constitution of
2the State of Iowa is proposed:
3The Constitution of the State of Iowa is amended by adding
4the following new section to a new Article:
5ARTICLE _____.
6EXPENDITURE LIMITATION.
7Section 1. General fund expenditure limitation.
81. For the purposes of this section:
9a. “Adjusted revenue estimate” means the most recent revenue
10estimate determined before January 1, or a later and lower
11revenue estimate determined before adjournment of the regular
12session of the general assembly, for the general fund for the
13following fiscal year, as determined by the revenue estimating
14conference, adjusted by subtracting estimated refunds payable
15from that estimated revenue. However, if the state general
16fund expenditure limitation is calculated based upon the
17adjusted revenue estimate and not based upon the net revenue
18estimate and the general assembly holds an extraordinary
19session prior to the commencement of the fiscal year to which
20the adjusted revenue estimate applies and if before or during
21the extraordinary session the revenue estimating conference
22determines a lower revenue estimate, the lower estimate shall
23be used for calculating the adjusted revenue estimate.
24b. “Current fiscal year” means the fiscal year preceding
25the fiscal year to which the state general fund expenditure
26limitation applies.
27c. “General fund” means the principal operating fund of the
28state.
29d. “Net revenue estimate” means the most recent revenue
30estimate determined before January 1, or a later and lower
31estimate determined before adjournment of the regular
32session of the general assembly, for the general fund
33for the current fiscal year, as determined by the revenue
34estimating conference, and adjusted by subtracting estimated
35refunds payable from that estimated revenue. However, if
-1-1the state general fund expenditure limitation is calculated
2based upon the net revenue estimate and not based upon the
3adjusted revenue estimate and the general assembly holds an
4extraordinary session prior to the completion of the fiscal
5year to which the net revenue estimate applies and if before
6or during the extraordinary session the revenue estimating
7conference determines a lower revenue estimate for the current
8fiscal year, the lower estimate shall be used for calculating
9the net revenue estimate for the general fund.
10e. “New revenue” means moneys received by the general fund
11due to increased tax rates or fees or newly created taxes or
12fees over and above those moneys received by the general fund
13due to state taxes or fees in effect as of January 1 following
14the most recent meeting of the revenue estimating conference.
15“New revenue” also includes moneys received by the general
16fund due to new transfers to the general fund over and above
17those moneys received by the general fund due to transfers in
18effect as of January 1 following the most recent meeting of the
19revenue estimating conference.
202. A state general fund expenditure limitation is created,
21as calculated in subsection 3, for each fiscal year beginning
22on or after July 1 following ratification by the voters of this
23amendment to the Constitution of the State of Iowa.
243. The state general fund expenditure limitation for a
25fiscal year shall be the lesser of the following amounts:
26a. Ninety-nine percent of the adjusted revenue estimate for
27the following fiscal year for the general fund.
28b. One hundred four percent of the current fiscal year net
29revenue estimate for the general fund.
304. The state general fund expenditure limitation shall be
31used by the governor in the preparation and approval of the
32budget and by the general assembly in the budget process.
335. If a new revenue source is proposed, the budget revenue
34projection used for that new revenue source for the period
35beginning on the effective date of the new revenue source and
-2-1ending in the fiscal year in which that source is included in
2the adjusted revenue estimate or the net revenue estimate,
3as applicable, shall be ninety-five percent of the amount
4remaining after subtracting estimated refunds payable from the
5projected revenue from that source.
66. If a revenue decrease is proposed, the projection for the
7revenue source used for that revenue decrease for the period
8beginning on the effective date of the revenue decrease and
9ending in the fiscal year in which that decrease is included in
10the adjusted revenue estimate or the net revenue estimate, as
11applicable, shall be one hundred percent of the amount of the
12projected revenue decrease from that source.
137. The scope of the state general fund expenditure
14limitation calculated in accordance with this section shall not
15include federal funds, donations, constitutionally dedicated
16moneys, and moneys expended from a state retirement system.
178. The governor shall submit and the general assembly shall
18pass a budget which does not exceed the state general fund
19expenditure limitation. The governor shall not approve or
20disapprove appropriation bills or items of appropriation bills
21passed by the general assembly in a manner that would cause the
22final appropriations approved by the governor to exceed the
23state general fund expenditure limitation.
249. The governor shall not submit and the general assembly
25shall not pass a budget which in order to balance assumes
26reversion of any part of the total of the appropriations
27included in the budget.
2810. The general assembly shall establish by law a general
29fund of the state and a revenue estimating conference. The
30general assembly shall enact laws to implement this section.
3111. The general assembly may suspend the application of this
32article by passage of a joint resolution, subject to approval
33by the governor, by two-thirds of the members elected to each
34house of the general assembly.
35 Sec. 2.REFERRAL AND PUBLICATION. The foregoing amendment
-3-1to the Constitution of the State of Iowa is referred to the
2general assembly to be chosen at the next general election
3for members of the general assembly, and the secretary of
4state is directed to cause the same to be published for three
5consecutive months previous to the date of that election as
6provided by law.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This joint resolution proposes an amendment to the
11Constitution of the State of Iowa establishing a new Article
12that relates to the state budget by creating a constitutionally
13required state general fund expenditure limitation.
14The expenditure limitation is the lesser of 99 percent
15of the adjusted revenue estimate for the general fund for
16the following fiscal year or 104 percent of the net revenue
17estimate for the general fund for the current fiscal year.
18The amendment defines “adjusted revenue estimate” and “net
19revenue estimate” and requires that the estimates be determined
20by a revenue estimating conference, which is required to be
21established by the general assembly by law. The amendment
22requires the expenditure limitation to be used by the governor
23in preparation of the governor’s budget and by the general
24assembly in the budget process, and requires the governor to
25submit, and the general assembly to pass, a budget that does
26not exceed the expenditure limitation. The amendment prohibits
27the governor from approving or disapproving of appropriations
28in a manner that would cause the final budget approved by the
29governor to exceed the expenditure limitation.
30If a new revenue source is proposed, 95 percent of the
31estimate of that new revenue, less the estimated refunds
32payable, shall be included in the revenue estimate used
33to calculate the expenditure limitation. If a new revenue
34decrease is proposed, 100 percent of the estimate of that
35revenue decrease shall be included in the revenue estimate used
-4-1to calculate the expenditure limitation.
2The amendment authorizes the general assembly to suspend the
3application of the expenditure limitation by passage of a joint
4resolution, subject to approval by the governor, by two-thirds
5of the members elected to each house of the general assembly.
6The joint resolution, if adopted, will be referred to the
7next general assembly for adoption a second time in identical
8form before being submitted to the electorate for ratification.
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2of the State of Iowa relating to the state budget by
3creating a state general fund expenditure limitation.
4BE IT RESOLVED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. The following amendment to the Constitution of
2the State of Iowa is proposed:
3The Constitution of the State of Iowa is amended by adding
4the following new section to a new Article:
5ARTICLE _____.
6EXPENDITURE LIMITATION.
7Section 1. General fund expenditure limitation.
81. For the purposes of this section:
9a. “Adjusted revenue estimate” means the most recent revenue
10estimate determined before January 1, or a later and lower
11revenue estimate determined before adjournment of the regular
12session of the general assembly, for the general fund for the
13following fiscal year, as determined by the revenue estimating
14conference, adjusted by subtracting estimated refunds payable
15from that estimated revenue. However, if the state general
16fund expenditure limitation is calculated based upon the
17adjusted revenue estimate and not based upon the net revenue
18estimate and the general assembly holds an extraordinary
19session prior to the commencement of the fiscal year to which
20the adjusted revenue estimate applies and if before or during
21the extraordinary session the revenue estimating conference
22determines a lower revenue estimate, the lower estimate shall
23be used for calculating the adjusted revenue estimate.
24b. “Current fiscal year” means the fiscal year preceding
25the fiscal year to which the state general fund expenditure
26limitation applies.
27c. “General fund” means the principal operating fund of the
28state.
29d. “Net revenue estimate” means the most recent revenue
30estimate determined before January 1, or a later and lower
31estimate determined before adjournment of the regular
32session of the general assembly, for the general fund
33for the current fiscal year, as determined by the revenue
34estimating conference, and adjusted by subtracting estimated
35refunds payable from that estimated revenue. However, if
-1-1the state general fund expenditure limitation is calculated
2based upon the net revenue estimate and not based upon the
3adjusted revenue estimate and the general assembly holds an
4extraordinary session prior to the completion of the fiscal
5year to which the net revenue estimate applies and if before
6or during the extraordinary session the revenue estimating
7conference determines a lower revenue estimate for the current
8fiscal year, the lower estimate shall be used for calculating
9the net revenue estimate for the general fund.
10e. “New revenue” means moneys received by the general fund
11due to increased tax rates or fees or newly created taxes or
12fees over and above those moneys received by the general fund
13due to state taxes or fees in effect as of January 1 following
14the most recent meeting of the revenue estimating conference.
15“New revenue” also includes moneys received by the general
16fund due to new transfers to the general fund over and above
17those moneys received by the general fund due to transfers in
18effect as of January 1 following the most recent meeting of the
19revenue estimating conference.
202. A state general fund expenditure limitation is created,
21as calculated in subsection 3, for each fiscal year beginning
22on or after July 1 following ratification by the voters of this
23amendment to the Constitution of the State of Iowa.
243. The state general fund expenditure limitation for a
25fiscal year shall be the lesser of the following amounts:
26a. Ninety-nine percent of the adjusted revenue estimate for
27the following fiscal year for the general fund.
28b. One hundred four percent of the current fiscal year net
29revenue estimate for the general fund.
304. The state general fund expenditure limitation shall be
31used by the governor in the preparation and approval of the
32budget and by the general assembly in the budget process.
335. If a new revenue source is proposed, the budget revenue
34projection used for that new revenue source for the period
35beginning on the effective date of the new revenue source and
-2-1ending in the fiscal year in which that source is included in
2the adjusted revenue estimate or the net revenue estimate,
3as applicable, shall be ninety-five percent of the amount
4remaining after subtracting estimated refunds payable from the
5projected revenue from that source.
66. If a revenue decrease is proposed, the projection for the
7revenue source used for that revenue decrease for the period
8beginning on the effective date of the revenue decrease and
9ending in the fiscal year in which that decrease is included in
10the adjusted revenue estimate or the net revenue estimate, as
11applicable, shall be one hundred percent of the amount of the
12projected revenue decrease from that source.
137. The scope of the state general fund expenditure
14limitation calculated in accordance with this section shall not
15include federal funds, donations, constitutionally dedicated
16moneys, and moneys expended from a state retirement system.
178. The governor shall submit and the general assembly shall
18pass a budget which does not exceed the state general fund
19expenditure limitation. The governor shall not approve or
20disapprove appropriation bills or items of appropriation bills
21passed by the general assembly in a manner that would cause the
22final appropriations approved by the governor to exceed the
23state general fund expenditure limitation.
249. The governor shall not submit and the general assembly
25shall not pass a budget which in order to balance assumes
26reversion of any part of the total of the appropriations
27included in the budget.
2810. The general assembly shall establish by law a general
29fund of the state and a revenue estimating conference. The
30general assembly shall enact laws to implement this section.
3111. The general assembly may suspend the application of this
32article by passage of a joint resolution, subject to approval
33by the governor, by two-thirds of the members elected to each
34house of the general assembly.
35 Sec. 2.REFERRAL AND PUBLICATION. The foregoing amendment
-3-1to the Constitution of the State of Iowa is referred to the
2general assembly to be chosen at the next general election
3for members of the general assembly, and the secretary of
4state is directed to cause the same to be published for three
5consecutive months previous to the date of that election as
6provided by law.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This joint resolution proposes an amendment to the
11Constitution of the State of Iowa establishing a new Article
12that relates to the state budget by creating a constitutionally
13required state general fund expenditure limitation.
14The expenditure limitation is the lesser of 99 percent
15of the adjusted revenue estimate for the general fund for
16the following fiscal year or 104 percent of the net revenue
17estimate for the general fund for the current fiscal year.
18The amendment defines “adjusted revenue estimate” and “net
19revenue estimate” and requires that the estimates be determined
20by a revenue estimating conference, which is required to be
21established by the general assembly by law. The amendment
22requires the expenditure limitation to be used by the governor
23in preparation of the governor’s budget and by the general
24assembly in the budget process, and requires the governor to
25submit, and the general assembly to pass, a budget that does
26not exceed the expenditure limitation. The amendment prohibits
27the governor from approving or disapproving of appropriations
28in a manner that would cause the final budget approved by the
29governor to exceed the expenditure limitation.
30If a new revenue source is proposed, 95 percent of the
31estimate of that new revenue, less the estimated refunds
32payable, shall be included in the revenue estimate used
33to calculate the expenditure limitation. If a new revenue
34decrease is proposed, 100 percent of the estimate of that
35revenue decrease shall be included in the revenue estimate used
-4-1to calculate the expenditure limitation.
2The amendment authorizes the general assembly to suspend the
3application of the expenditure limitation by passage of a joint
4resolution, subject to approval by the governor, by two-thirds
5of the members elected to each house of the general assembly.
6The joint resolution, if adopted, will be referred to the
7next general assembly for adoption a second time in identical
8form before being submitted to the electorate for ratification.
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