This resolution proposes two amendments within a new
Article XIII to the Constitution of the State of Iowa which relate to state
budgets.
The first amendment establishes a state general fund
expenditure limitation. The amount of the limitation is 99 percent of the
adjusted revenue estimate. The amendment defines adjusted revenue estimate
and requires that that estimate be determined by a revenue estimating
conference which is to be created by the General Assembly by law. The
amendment requires that the expenditure limitation be used by the Governor
in preparation of the Governor's budget and by the General Assembly in the
budget process. The amendment also provides that, if a new revenue source is
established and implemented, 95 percent of the estimate of that new revenue
shall be included in the expenditure limitation.
The first amendment also provides that the amount of
any surplus which exceeds an amount equal to 10 percent of the adjusted
revenue estimate may be included in the adjusted revenue estimate for the
following fiscal year. Any surplus which is equal to 10 percent or less of
the amount of the adjusted revenue estimate may be included in the following
year's adjusted revenue estimate if use of those funds is approved by a
three-fifths majority of each house of the General Assembly. The amendment
also requires the State to use generally accepted accounting principles for
state budgeting and accounting purposes. The amendment provides that the
General Assembly shall enact laws to implement the amendment.
The second amendment contained in the resolution
requires a three-fifths majority for certain tax law changes. The amendment
provides that any bill which enacts, amends, or repeals the state income tax
or the state sales and use tax, and which causes, in the aggregate, an
increase in state tax revenues, as determined by the General Assembly must
be adopted by a three-fifths vote of the whole membership of each
house of the General Assembly. The amendment also requires a three-fifths
majority vote of each house of the General Assembly in order to enact a new
state tax to be imposed by the state. A lawsuit challenging a bill pursuant
to either three-fifths majority passage requirement must be filed no later
than one year from the date of enactment of the bill.
Finally, the amendment provides that the General
Assembly shall enact laws to implement the amendment.
The resolution, if adopted, provides for both
amendments to be submitted to the voters for their decision on ratification
at a special election called for that purpose. As required by the Iowa
Constitution, the voters will vote separately for or against each of the two
amendments.
