Bill Text: IA SJR10 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A joint resolution proposing an amendment to the Constitution of the State of Iowa relating to the state budget by creating a state general fund expenditure limitation.
Sponsorship: Partisan Bill (Republican 23-1)
Status: (Introduced - Dead) 2015-03-05 - Subcommittee, Danielson, Dvorsky, and Whitver. S.J. 457. [SJR10 Detail]
Download: Iowa-2015-SJR10-Introduced.html
Senate Joint Resolution 10 - Introduced SENATE JOINT RESOLUTION BY DIX, BEHN, ZUMBACH, SINCLAIR, COSTELLO, GARRETT, BREITBACH, SCHULTZ, SEGEBART, JOHNSON, KAPUCIAN, SMITH, ROZENBOOM, GUTH, CHAPMAN, BERTRAND, SHIPLEY, KRAAYENBRINK, WHITVER, CHELGREN, SCHNEIDER, ZAUN, FEENSTRA, and ANDERSON SENATE JOINT RESOLUTION 1 A Joint Resolution proposing an amendment to the Constitution 2 of the State of Iowa relating to the state budget by 3 creating a state general fund expenditure limitation. 4 BE IT RESOLVED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1687XS (4) 86 tm/sc 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 revenue 1 10 estimate determined before January 1, or a later and lesser 1 11 revenue estimate determined before adjournment of the regular 1 12 session of the general assembly, for the general fund for the 1 13 following fiscal year, as determined by a revenue estimating 1 14 conference which shall be established by the general assembly 1 15 by law, adjusted by subtracting estimated refunds payable 1 16 from that estimated revenue. However, if the state general 1 17 fund expenditure limitation is calculated based upon the 1 18 adjusted revenue estimate and the general assembly holds an 1 19 extraordinary session prior to the commencement of the fiscal 1 20 year to which the adjusted revenue estimate applies and before 1 21 or during the extraordinary session the revenue estimating 1 22 conference determines a lesser revenue estimate, the lesser 1 23 estimate shall be used for the adjusted revenue estimate. 1 24 b. "Current fiscal year" means the fiscal year preceding 1 25 the fiscal year to which the state general fund expenditure 1 26 limitation applies. 1 27 c. "General fund" means the principal operating fund of the 1 28 state which shall be established by the general assembly by 1 29 law. 1 30 d. "Net revenue estimate" means the most recent revenue 1 31 estimate determined before January 1, or a later and lesser 1 32 estimate determined before adjournment of the regular 1 33 session of the general assembly for the general fund for the 1 34 current fiscal year, as determined by the revenue estimating 1 35 conference, and adjusted by subtracting estimated refunds 2 1 payable from that estimated revenue. However, if the state 2 2 general fund expenditure limitation is calculated based upon 2 3 the net revenue estimate and the general assembly holds an 2 4 extraordinary session prior to the completion of the fiscal 2 5 year to which the net revenue estimate applies and before 2 6 or during the extraordinary session the revenue estimating 2 7 conference determines a lesser revenue estimate for the current 2 8 fiscal year, such lesser estimate shall be used for calculating 2 9 the net revenue estimate for the general fund. 2 10 e. "New revenue" means moneys which are received by the 2 11 general fund due to increased tax rates or fees or newly 2 12 created taxes or fees over and above those moneys which are 2 13 received due to state taxes or fees which are in effect as 2 14 of January 1 following the most recent meeting of the state 2 15 revenue estimating conference. "New revenue" also includes 2 16 moneys received by the general fund due to new transfers over 2 17 and above those moneys received by the general fund due to 2 18 transfers which are in effect as of January 1 following the 2 19 most recent meeting of the state revenue estimating conference. 2 20 Except for transfers provided for by law, the state revenue 2 21 estimating conference shall determine whether transfers to the 2 22 general fund are to be considered as new revenue in determining 2 23 the state general fund expenditure limitation. 2 24 2. A state general fund expenditure limitation is created 2 25 and calculated in subsection 3, for each fiscal year beginning 2 26 on or after July 1 following the effective date of this 2 27 section. 2 28 3. Except as otherwise provided in this section, the state 2 29 general fund expenditure limitation for a fiscal year shall be 2 30 the lesser of the following amounts: 2 31 a. Ninety=nine percent of the adjusted revenue estimate for 2 32 the general fund for the following fiscal year. 2 33 b. One hundred four percent of the current fiscal year net 2 34 revenue estimate for the general fund. 2 35 4. The state general fund expenditure limitation shall be 3 1 used by the governor in the preparation and approval of the 3 2 budget and by the general assembly in the budget process. 3 3 5. If a new revenue source is proposed, the budget revenue 3 4 projection used for that new revenue source for the period 3 5 beginning on the effective date of the new revenue source and 3 6 ending in the fiscal year in which the source is included in 3 7 the adjusted revenue estimate or the net revenue estimate, 3 8 as applicable, shall be ninety=five percent of the amount 3 9 remaining after subtracting estimated refunds payable from the 3 10 projected revenue from that source. If a new revenue source 3 11 is established and implemented, the original state general 3 12 fund expenditure limitation amount provided for in subsection 3 13 3 shall be recalculated to include ninety=five percent of the 3 14 estimated revenue from that source that is attributed to the 3 15 revenue estimate used to calculate the original limitation 3 16 amount. 3 17 6. The scope of the state general fund expenditure 3 18 limitation calculated in accordance with this section shall not 3 19 include federal funds, donations, constitutionally dedicated 3 20 moneys, and moneys expended from a state retirement system. 3 21 7. The governor shall submit and the general assembly shall 3 22 pass a budget which does not exceed the state general fund 3 23 expenditure limitation. The governor shall not approve or 3 24 disapprove appropriation bills or items of appropriation bills 3 25 passed by the general assembly in a manner that would cause 3 26 the final budget approved by the governor to exceed the state 3 27 general fund expenditure limitation. 3 28 8. The governor shall not submit and the general assembly 3 29 shall not pass a budget which in order to balance assumes 3 30 reversion of any part of the total of the appropriations 3 31 included in the budget. 3 32 9. The state shall use consistent standards, in accordance 3 33 with generally accepted accounting principles, for all state 3 34 budgeting and accounting purposes. 3 35 10. The general assembly shall enact laws to implement this 4 1 section. 4 2 EXPLANATION 4 3 The inclusion of this explanation does not constitute agreement with 4 4 the explanation's substance by the members of the general assembly. 4 5 This resolution proposes an amendment within a new Article 4 6 XIII to the Constitution of the State of Iowa that relates to 4 7 state budgets and state revenue. 4 8 The amendment creates a state general fund expenditure 4 9 limitation. The amount of the limitation is the lesser of 4 10 99 percent of the adjusted revenue estimate for the general 4 11 fund of the state for the following fiscal year or 104 percent 4 12 of the net revenue estimate for the general fund for the 4 13 current fiscal year. The amendment defines adjusted revenue 4 14 estimate and net revenue estimate and requires that the 4 15 estimates be determined by a revenue estimating conference 4 16 which is to be created by the general assembly by law. The 4 17 expenditure limitation is required to be used by the governor 4 18 in preparation of the governor's budget and by the general 4 19 assembly in the budget process. The governor is prohibited 4 20 from approving or disapproving of appropriations in a manner 4 21 that would cause the final budget approved by the governor to 4 22 exceed the expenditure limitation. 4 23 If a new revenue source is established and implemented, 95 4 24 percent of the estimate of that new revenue shall be included 4 25 in the revenue estimate used to calculate the expenditure 4 26 limitation. 4 27 The amendment also requires the state to use generally 4 28 accepted accounting principles for state budgeting and 4 29 accounting purposes. The amendment provides that the general 4 30 assembly shall enact laws to implement the amendment. 4 31 The resolution, if adopted, will be referred to the next 4 32 general assembly. If the next general assembly adopts this 4 33 resolution, the amendments will be submitted to the voters for 4 34 their decision on ratification. LSB 1687XS (4) 86 tm/sc
