Bill Text: CA SCA33 | 2009-2010 | Regular Session | Introduced
Bill Title: Expenditure limit.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-08-31 - From print. May be acted upon on or after September 30. [SCA33 Detail]
Download: California-2009-SCA33-Introduced.html
BILL NUMBER: SCA 33 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Wyland
AUGUST 30, 2010
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by repealing and
adding Article XIII B thereof, and by amending Section 8.5 of Article
XVI thereof, relating to expenditure limits.
LEGISLATIVE COUNSEL'S DIGEST
SCA 33, as introduced, Wyland. Expenditure limit.
Existing provisions of the California Constitution prohibit the
annual appropriations subject to limitation, as defined, of any
entity of state or local government from exceeding the entity's
adjusted annual appropriations limit. These provisions also require
50% of the excess revenues received by the state in a fiscal year and
the fiscal year immediately following it to be transferred and
allocated, from a fund established for that purpose, to the State
School Fund, and the remaining 50% of those excess revenues to be
returned by a revision of tax rates or fee schedules within the next
2 subsequent fiscal years.
This measure would repeal those provisions, and instead would
prohibit total expenditures of state General Fund and special fund
revenues from annually increasing by more than the annual percentage
increase in the cost of living, multiplied by the annual percentage
increase in state population. The measure would require excess
General Fund revenues to be allocated in prescribed amounts first to
a reserve account, and then, to the extent excess revenues remain, to
the State School Fund and to personal income taxpayers.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
Resolved by the Senate, the Assembly concurring, That the
Legislature of the State of California at its 2009-10 Regular Session
commencing on the first day of December 2008, two-thirds of the
membership of each house concurring, hereby proposes to the people of
the State of California, that the Constitution of the State be
amended as follows:
First-- That Article XIII B thereof is repealed.
Second-- That Article XIII B is added thereto, to read:
ARTICLE XIII B
EXPENDITURE LIMIT
SECTION 1. (a) (1) The total expenditures made for a fiscal
year from General Fund revenues and state special fund revenues, in
the aggregate, shall not increase from the amount of those total
expenditures for the immediately preceding fiscal year by more than
the percentage increase in the cost of living multiplied by the
percentage increase in the state population. If the total
expenditures made for the immediately preceding fiscal year were less
than the total amount of allowable expenditures for that year, then
the total expenditures made for the current fiscal year may not
exceed the total amount of allowable expenditures for the immediately
preceding fiscal year.
(2) As used in this section, "percentage change in the cost of
living" means the percentage change from April 1 of the prior year to
April 1 of the current year in the California Consumer Price Index
for all items, as determined by the Department of Industrial
Relations or its successor. For purposes of this calculation,
"current year" means the calendar year in which the fiscal year
commences.
(3) As used in this section, "percentage change in state
population" means the change in population of the State as determined
by the Department of Finance, or its successor agency, revised, as
necessary, to reflect the periodic census conducted by the United
States Department of Commerce, or its successor agency.
(b) The expenditure limit in subdivision (a) may be exceeded for a
fiscal year in an emergency as described in this subdivision, but
any such excess expenditures are not part of the expenditure base for
the purposes of determining the total amount of allowable
expenditures for the next fiscal year pursuant to subdivision (a). As
used in this subdivision, "emergency" means the existence, as
declared by the Governor, of conditions of disaster or extreme peril
to the safety of persons and property within the State, or parts
thereof, caused by conditions such as an attack or a probable or
imminent attack by an enemy of the United States, or fire, flood,
drought, storm, civil disorder, earthquake, or volcanic eruption.
(c) For purposes of implementing subdivision (d) for each fiscal
year, the Department of Finance, or its successor agency, shall do
all of the following:
(1) Estimate, no less frequently than quarterly, the total amount
of revenues that will be received during the fiscal year for deposit
in the General Fund or in a special fund. The department shall
publish the final estimate made for a fiscal year pursuant to this
paragraph in a final budget summary.
(2) Determine the total amount of revenues received during the
fiscal year for deposit in the General Fund or in a special fund.
(3) Determine the balance of the General Fund and of each special
fund as of the end of the fiscal year.
(d) If the total amount of revenues received during the fiscal
year for deposit in the General Fund and in state special funds
exceeds the total amount of allowable expenditures for that fiscal
year, the amount of that excess shall be attributed in proportionate
shares to the General Fund and to each special fund, by multiplying
the balance of each of those funds at the end of the fiscal year by
the percentage by which the total revenues received exceed the total
amount of allowable expenditures for that fiscal year. That portion
of the excess amount attributed to each special fund shall be
transferred to a reserve in that special fund subject to expenditure
in a subsequent fiscal year. The amount of these excess revenues
attributable to the General Fund shall be allocated from the General
Fund as follows:
(1) To the Special Reserve Account, which is hereby created in the
General Fund, to the extent that this account contains an amount no
greater than 10 percent of the total amount of allowable expenditures
for the fiscal year. Notwithstanding any other provision of this
section, funds in the reserve account may be expended in an amount
equal to the amount by which the total amount of revenues determined
by the Department of Finance to have been received during the fiscal
year for deposit in the General Fund is less than the department's
final estimate of that amount made pursuant to paragraph (1) of
subdivision (c) for that fiscal year. Any funds expended from the
Special Reserve Account pursuant to this paragraph are part of the
expenditure base for the purpose of determining the total amount of
allowable expenditures for the next fiscal year pursuant to
subdivision (a). Subject to the 10-percent restriction set forth in
this paragraph, any unexpended balance in the reserve account,
including any interest earnings, shall carry over from one fiscal
year to the next.
(2) Revenue that exceeds the amount that may be deposited into the
reserve account shall be allocated as follows, which allocations
shall not be part of the expenditure base for the purpose of
determining the total amount of allowable expenditures for the next
fiscal year pursuant to subdivision (a):
(A) Fifty percent shall be transferred and allocated, from a fund
established for that purpose, pursuant to Section 8.5 of Article XVI.
(B) Fifty percent shall be paid as a rebate to all personal income
taxpayers in shares determined in proportion to each taxpayer's tax
liability for the tax year that encompasses the first half of the
fiscal year for which the excess exists.
(e) If the financial responsibility for providing services is
transferred, in whole or in part, from the state government to an
entity of local government, then the total amount of allowable
expenditures in the fiscal year that the transfer is implemented
shall be reduced by an amount equal to the cost of providing the
transferred services, to prevent an effective increase in the total
amount of allowable expenditures. For the purposes of this
subdivision, a transfer of financial responsibility for providing
services does not include any mandate of a program or level of
service for which reimbursement is required by Section 3.
SEC. 2. (a) As used in Section 7.5 of Article IV, "the
percentage increase in the appropriations limit for the State
established pursuant to Article XIII B" means the percentage change
in California per capita personal income from the prior year, plus
(1) the percentage change in the State's population multiplied by the
percentage change in the State's budget in the prior fiscal year
that is expended for other than educational purposes for kindergarten
and grades 1 to 12, inclusive, and the community colleges, and (2)
the percentage change in the total statewide average daily attendance
in kindergarten and grades 1 to 12, inclusive, and the community
colleges, multiplied by the percentage of the State's budget in the
prior fiscal year that is expended for educational purposes for
kindergarten and grades 1 to 12, inclusive, and the community
colleges.
(b) As used in Section 8 of Article XVI, "change in the cost of
living pursuant to paragraph (1) of subdivision (e) of Section 8 of
Article XIII B" means the percentage change in California per capita
personal income from the prior year.
SEC. 3. (a) Whenever the Legislature or any state agency
mandates a new program or higher level of service on any local
government, the State shall provide a subvention of funds to
reimburse that local government for the costs of the program or
increased level of service. However, the Legislature may, but is not
required to, provide a subvention of funds for the following
mandates:
(1) Legislative mandates requested by the local agency affected.
(2) Legislation defining a new crime or changing an existing
definition of a crime.
(3) Legislative mandates enacted prior to January 1, 1975, or
executive orders or regulations initially implementing legislation
enacted prior to January 1, 1975.
(b) (1) Except as provided in paragraph (2), for the 2005-06
fiscal year and every subsequent fiscal year, for a mandate for which
the costs of a local government claimant have been determined in a
preceding fiscal year to be payable by the State pursuant to law, the
Legislature shall either appropriate, in the annual Budget Act, the
full payable amount that has not been previously paid, or suspend the
operation of the mandate for the fiscal year for which the annual
Budget Act is applicable in a manner prescribed by law.
(2) Payable claims for costs incurred prior to the 2004-05 fiscal
year that have not been paid prior to the 2005-06 fiscal year may be
paid over a term of years, as prescribed by law.
(3) Ad valorem property tax revenues shall not be used to
reimburse a local government for the costs of a new program or higher
level of service.
(4) This subdivision applies to a mandate only as it affects a
city, county, city and county, or special district.
(5) This subdivision shall not apply to a requirement to provide
or recognize any procedural or substantive protection, right,
benefit, or employment status of any local government employee or
retiree, or of any local government employee organization, that
arises from, affects, or directly relates to future, current, or past
local government employment and that constitutes a mandate subject
to this section.
(c) A mandated new program or higher level of service includes a
transfer by the Legislature from the State to cities, counties,
cities and counties, or special districts of complete or partial
financial responsibility for a required program for which the State
previously had complete or partial financial responsibility.
Third-- That Section 8.5 of Article XVI thereof is amended to
read:
SEC. 8.5. (a) In addition to the amount required to be applied
for the support of school districts and community college districts
pursuant to Section 8, the Controller shall during each fiscal year
transfer and allocate all revenues available pursuant to
subparagraph (A) of paragraph 1 (2)
of subdivision (a) (d) of Section
2 1 of Article XIII B to that portion
of the State School Fund restricted for elementary and high school
purposes, and to that portion of the State School Fund restricted for
community college purposes, respectively, in proportion to the
enrollment in school districts and community college districts
respectively.
(1) With respect to funds allocated to that portion of the State
School Fund restricted for elementary and high school purposes, no
transfer or allocation of funds pursuant to this section shall be
required at any time that the Director of Finance and the
Superintendent of Public Instruction mutually determine that current
annual expenditures per student equal or exceed the average annual
expenditure per student of the 10 states with the highest annual
expenditures per student for elementary and high schools, and that
average class size equals or is less than the average class size of
the 10 states with the lowest class size for elementary and high
schools.
(2) With respect to funds allocated to that portion of the State
School Fund restricted for community college purposes, no transfer or
allocation of funds pursuant to this section shall be required at
any time that the Director of Finance and the Chancellor of the
California Community Colleges mutually determine that current annual
expenditures per student for community colleges in this State equal
or exceed the average annual expenditure per student of the 10 states
with the highest annual expenditures per student for community
colleges.
(b) Notwithstanding the provisions of Article XIII B, funds
allocated pursuant to this section shall not constitute
appropriations subject to limitation.
(c)
(b) From any funds transferred to the State School Fund
pursuant to subdivision (a), the Controller shall each year allocate
to each school district and community college district an equal
amount per enrollment in school districts from the amount in that
portion of the State School Fund restricted for elementary and high
school purposes and an equal amount per enrollment in community
college districts from that portion of the State School Fund
restricted for community college purposes.
(d)
(c) All revenues allocated pursuant to subdivision (a)
shall be expended solely for the purposes of instructional
improvement and accountability as required by law.
(e)
(d) Any school district maintaining an elementary or
secondary school shall develop and cause to be prepared an annual
audit accounting for such those funds
and shall adopt a School Accountability Report Card for each school.
