HOUSE JOINT RESOLUTION NO. 1

View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and Underline. Text to be removed has been marked with Strikethrough and Italic. How these codes are actually displayed will vary based on the browser software you are using.
This sentence is marked with bold and underline to show added text.
This sentence is marked with strikethrough and italic, indicating text to be removed.

Bill Status



                    ***********************************
                                                                        
                                                                        
HJR001..................................................by BARRETT AND WOOD
TAXPAYER'S BILL OF RIGHTS - Proposes an amendment to the Constitution of
the State of Idaho to create a Taxpayer's Bill of Rights for the purpose of
limiting legislative appropriations and expenditures in any fiscal year to
the sum of the total appropriation for the previous fiscal year and the
average of the annual percentage changes of the three immediately preceding
calendar years in the cost of living and population; to provide
definitions; to create the Taxpayers' Reserve Fund; to provide for
maintenance of a Budget Stabilization Fund; to provide for deposit of
certain state revenues collected in excess of appropriations and
expenditures to the Taxpayers' Reserve Fund; to provide for withdrawal of
moneys from the Taxpayers' Reserve Fund; to provide for transfers of moneys
by operation of law as such exist on December 31, 2006; to require a
two-thirds majority vote for any increase in a discretionary user charge or
for transfers of moneys by operation of law created on and after January 1,
2007; and to provide exemptions from expenditure limits.
                                                                        
01/28    House intro - 1st rdg - to printing
01/31    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                HOUSE JOINT RESOLUTION NO. 1
                                                                        
                                    BY BARRETT AND WOOD
                                                                        
  1                                  A JOINT RESOLUTION
  2    PROPOSING AN AMENDMENT TO ARTICLE VII, OF THE CONSTITUTION  OF  THE  STATE  OF
  3        IDAHO,  BY  THE  ADDITION  OF A NEW SECTION 18, ARTICLE VII, RELATING TO A
  4        TAXPAYER'S BILL OF RIGHTS TO LIMIT LEGISLATIVE APPROPRIATIONS AND EXPENDI-
  5        TURES IN ANY FISCAL YEAR TO THE SUM OF THE  TOTAL  APPROPRIATION  FOR  THE
  6        PREVIOUS  FISCAL  YEAR AND THE AVERAGE OF THE ANNUAL PERCENTAGE CHANGES OF
  7        THE THREE IMMEDIATELY PRECEDING CALENDAR YEARS IN THE COST OF  LIVING  AND
  8        POPULATION, TO PROVIDE DEFINITIONS, TO CREATE THE TAXPAYERS' RESERVE FUND,
  9        TO  PROVIDE FOR MAINTENANCE OF A BUDGET STABILIZATION FUND, TO PROVIDE FOR
 10        DEPOSIT OF CERTAIN STATE REVENUES COLLECTED IN  EXCESS  OF  APPROPRIATIONS
 11        AND EXPENDITURES TO THE TAXPAYERS' RESERVE FUND, TO PROVIDE FOR WITHDRAWAL
 12        OF  MONEYS  FROM  THE TAXPAYERS' RESERVE FUND, TO PROVIDE FOR TRANSFERS OF
 13        MONEYS BY OPERATION OF LAW AS SUCH EXIST ON DECEMBER 31, 2006, TO  REQUIRE
 14        A TWO-THIRDS MAJORITY VOTE FOR ANY INCREASE IN A DISCRETIONARY USER CHARGE
 15        OR  FOR TRANSFERS OF MONEYS BY OPERATION OF LAW CREATED ON AND AFTER JANU-
 16        ARY 1, 2007, AND TO PROVIDE EXEMPTIONS FROM  EXPENDITURE  LIMITS;  STATING
 17        THE  QUESTION TO BE SUBMITTED TO THE ELECTORATE; DIRECTING THE LEGISLATIVE
 18        COUNCIL TO PREPARE THE STATEMENTS REQUIRED BY LAW; AND DIRECTING THE  SEC-
 19        RETARY OF STATE TO PUBLISH THE AMENDMENT AND ARGUMENTS AS REQUIRED BY LAW.
                                                                        
 20    Be It Resolved by the Legislature of the State of Idaho:
                                                                        
 21        SECTION  1.  That Article VII of the Constitution of the State of Idaho be
 22    amended by the addition thereto of a NEW SECTION, to be known  and  designated
 23    as  Section  18, Article VII, of the Constitution of the State of Idaho and to
 24    read as follows:
                                                                        
 25             SECTION 18.  TAXPAYER'S BILL OF RIGHTS --  SPENDING  LIMITATION.
 26        Unless  agreed to by two-thirds of all the members present in each of
 27        the two houses of the legislature and thereupon signed by the  gover-
 28        nor  pursuant  to section 10 of article IV, no appropriation shall be
 29        made, nor expenditure authorized  by  the  legislature,  whereby  the
 30        expenditure  of the state during any fiscal year shall exceed the sum
 31        of the total appropriation for the previous fiscal year and the aver-
 32        age of the annual percentage changes of the three immediately preced-
 33        ing calendar years in the cost of living and population.
 34             For the purposes of this section, "cost of  living"  shall  mean
 35        all items contained in the consumer price index for the United States
 36        of America, or any comparable index, as computed by the United States
 37        bureau  of  labor  statistics or the United States department of com-
 38        merce for a twelve month period of time; and "population" shall  mean
 39        the  number of people residing in the state of Idaho, excluding armed
 40        forces personnel stationed overseas,  as  determined  by  the  United
 41        States bureau of the census.
 42             For   the   purposes   of   this  section,  "appropriation"  and
 43        "expenditure" shall apply only to those appropriations funded by  tax
                                                                        
                                           2
                                                                        
  1        and  levy  collections  by  the  state for general fund purposes, but
  2        shall not apply to  moneys  deposited  or  drawn  on  the  taxpayers'
  3        reserve  fund,  hereby  created  in  this  section for the purpose of
  4        refunding moneys to taxpayers from certain state  revenues  collected
  5        in excess of appropriation and expenditure limits.
  6             The  legislature  shall  maintain  a  budget  stabilization fund
  7        whereby up to  a maximum of one percent of the  actual  general  fund
  8        collections  of  the  fiscal  year just ended shall be deposited when
  9        receipts to the general fund for the  fiscal  year  just  ended  have
 10        exceeded  the  receipts of the previous fiscal year by more than four
 11        percent, provided that the amount of moneys in the budget  stabiliza-
 12        tion  fund  shall  not  exceed five percent of the total general fund
 13        receipts for the fiscal year just ended. Moneys may be drawn from the
 14        budget stabilization fund as provided by law.
 15             State revenues collected in excess of  the  "appropriation"  and
 16        "expenditure"  provision  of  this  section  and  revenues that would
 17        exceed the limitations put forth in this section on the budget stabi-
 18        lization fund, shall be deposited to the taxpayers' reserve fund. The
 19        legislature shall deplete the moneys from the taxpayers' reserve fund
 20        within two fiscal years from the fiscal  year  they  were  deposited,
 21        provided  that  the  total amount of moneys in the taxpayers' reserve
 22        fund exceeds one percent of the general fund total appropriations for
 23        the previous fiscal year. No money shall be drawn from the taxpayers'
 24        reserve fund except for the purpose of refunding moneys to  the  tax-
 25        payers  by  a temporary or permanent reduction of state tax rates for
 26        the next ensuing tax year; or to refund pro rata on annual income tax
 27        returns; or by declaration of a sales tax holiday that  exempts  par-
 28        ticular  calendar  days or particular goods and services from imposi-
 29        tion of the sales tax; or any combination of any reduction, refund or
 30        sales tax holiday as the legislature shall provide by law.
 31             Any transfers of moneys by operation of law from  any  funds  or
 32        accounts  in existence on December 31, 2006, whereby moneys are first
 33        transferred by operation of law for stated purposes and any remaining
 34        moneys are deposited to the general fund, shall be  exempt  from  the
 35        limitations  provided  in this section. On and after January 1, 2007,
 36        any increase of a discretionary user charge, or any new fund, account
 37        or additional provision of law authorizing or increasing transfer  of
 38        moneys  whereby  moneys are first transferred by operation of law for
 39        stated purposes and any remaining moneys are deposited to the general
 40        fund, shall require a two-thirds majority vote of all members present
 41        in each of the two houses of the legislature and thereupon  shall  be
 42        presented to the governor pursuant to section 10 of article IV of the
 43        constitution of the state of Idaho.
 44             Any  expenditure  by  the  state  which  provides  a  program of
 45        replacement of revenues by the state from the  general  fund  as  tax
 46        relief  for  a political subdivision of the state, or any expenditure
 47        by the state to pay deficiency warrants issued for emergency expendi-
 48        tures declared by the governor, shall be exempt from the  limitations
 49        provided in this section.
                                                                        
 50        SECTION  2.  The  question to be submitted to the electors of the State of
 51    Idaho at the next general election shall be as follows:
 52        "Shall Article VII, of the Constitution of the State of Idaho, be  amended
 53    by  the  addition  of  a new Section 18, Article VII, relating to a taxpayer's
 54    bill of rights to limit legislative appropriations  and  expenditures  in  any
                                                                        
                                           3
                                                                        
  1    fiscal year to the sum of the total appropriation for the previous fiscal year
  2    and the average of the annual percentage changes of the three immediately pre-
  3    ceding calendar years in the cost of living and population; to provide defini-
  4    tions;  to create the Taxpayers' Reserve Fund; to provide for maintenance of a
  5    Budget Stabilization Fund; to provide for deposit of  certain  state  revenues
  6    collected  in  excess  of  appropriations  and  expenditures to the Taxpayers'
  7    Reserve Fund; to provide for withdrawal of moneys from the Taxpayers'  Reserve
  8    Fund;  to provide for transfers of moneys by operation of law as such exist on
  9    December 31, 2006; to require a two-thirds majority vote for any increase in a
 10    discretionary user charge or for transfers of moneys by operation of law  cre-
 11    ated  on and after January 1, 2007; and to provide exemptions from expenditure
 12    limits?".
                                                                        
 13        SECTION 3.  The Legislative Council is directed to prepare the  statements
 14    required by Section 67-453, Idaho Code, and file the same.
                                                                        
 15        SECTION 4.  The Secretary of State is hereby directed to publish this pro-
 16    posed constitutional amendment and arguments as required by law.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 14749

State revenues collected in This constitutional amendment limits
General Fund appropriations to the previous year's level plus the
annual inflation rate, plus the annual percentage increase in
population.  State revenues collected in excess of the limit are
distributed among three created funds; the Emergency Fund (25%),
the Budget Stabilization Fund (50%), and the Excess Revenue Fund
(25%).  The Emergency Fund can be tapped upon a declaration of
emergency by the Governor and a majority vote.
  The Budget Stabilization Fund can be tapped when state revenues
are in deficit of the TABOR cap in amounts up to the said deficit
and upon a two-thirds(2/3) vote.  This provision smooths out the
boom and bust cycles, like we have recently experienced.  The
legislature may deposit additional revenues in the Emergency Fund
or Budget Stabilization Fund.


                         FISCAL NOTE

This constitutional amendment would limit General Fund expenditures
to the previous year's level plus the annual inflation rate, plus
the percentage growth in population.

Example: FY2005 total appropriations $2,082,138,300.
FY2006 inflation 1.9% plus FY 2006 population growth 1.5% for a
total of 3.4%.  FY2006 General Fund spending cap would be
$2,152,931,200.



Contact
Name:  Rep Lenore Hardy Barrett, Rep JoAn Wood 
Phone: 332-1000
      
       Laird Maxwell, Idahoans for Tax Reform
       426-0358


STATEMENT OF PURPOSE/FISCAL NOTE                      HJR 1