1.2proposing an amendment to the Minnesota Constitution by adding a section to
1.3article XI; limiting the level of budgeted spending to 98 percent of the amount
1.4forecast to be collected in the biennium.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. CONSTITUTIONAL AMENDMENT PROPOSED.
1.7An amendment to the Minnesota Constitution is proposed to the people. If the
1.8amendment is adopted, a section shall be added to article XI, to read:
1.9Sec. 16. (a) No appropriation may be enacted that would cause the aggregate state
1.10general fund appropriations enacted for any biennial budget period to exceed 98 percent of
1.11the forecast state general fund revenue for that biennial budget period from all sources.
1.12A law enacted pursuant to section 7 is not considered an appropriation for the purpose
1.13of this section.
1.14(b) Notwithstanding paragraph (a), any portion of the amount over 98 percent of
1.15the state general fund revenue for any biennial budget period as estimated according
1.16to paragraph (a) may be appropriated in any biennial budget period for expenditures
1.17necessary to respond to emergencies involving the health, safety, or welfare of the citizens
1.18of the state of Minnesota, but only if those appropriations are approved by three-fifths of
1.19the members of each house of the legislature.
1.20(c) A budget reserve account is established within the general fund in the state
1.21treasury. Within 60 days after the end of any biennial budget period, the excess of
1.22any unencumbered funds remaining from the biennial budget period shall be paid into
1.23the budget reserve account. The legislature, by a three-fifths vote of the members of
1.24each house, may appropriate from the budget reserve account additional sums to fund
2.1expenditures necessary to respond to emergencies involving the health, safety, or welfare
2.2of the citizens of the state of Minnesota.
2.3(d) If the amount of funds that would be paid into the budget reserve account under
2.4paragraph (c) exceeds the amount needed to bring the total in the budget reserve account
2.5to an amount equal to five percent of the estimated biennial general fund revenues as
2.6determined according to paragraph (a), the rate of the state general sales and use taxes
2.7imposed under law must be reduced as provided in this paragraph. The rate must be
2.8reduced so that the estimated revenue reduction is equal to the amount by which the
2.9budget reserve account exceeds two percent of the estimated general fund revenues as
2.10determined according to paragraph (a), effective July 1 of the following year, unless the
2.11legislature has enacted prior to that date an alternative temporary or permanent reduction
2.12or reductions in state taxes equal in amount to the sales and use tax reduction otherwise
2.13required under this paragraph.

2.14    Sec. 2. SUBMISSION TO VOTERS.
2.15The proposed amendment must be submitted to the people at the 2012 general
2.16election. The question submitted must be:
2.17"Shall the Minnesota Constitution be amended to include spending restrictions that
2.18limit state government spending to 98 percent of revenues forecast to be received by the
2.19state in the biennial budget period, and any additional expenditures may only be made by a
2.20three-fifths vote of the legislature to provide for emergencies involving the health, safety,
2.21or welfare of the citizens of Minnesota, and when budget reserves exceed five percent of
2.22revenues, excess revenues must be used to provide tax reductions?

2.23		Yes .....
2.24		No ..... "