2004 Legislation
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SENATE BILL NO. 1378 – Approps, based on actual revenue

SENATE BILL NO. 1378

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Bill Status



S1378............................................................by FINANCE
APPROPRIATIONS - Amends existing law to provide additional limits on
expenditures by requiring the Legislature to set appropriations for a
fiscal year based upon the actual revenues collected in the most recently
concluded fiscal year, less the actual amount of revenues which were
collected or received on a one-time basis only; to prohibit setting
appropriations which exceed such amount; and to allow appropriations to be
set below such amount.
                                                                        
02/17    Senate intro - 1st rdg - to printing
02/18    Rpt prt - to Fin

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1378
                                                                        
                                    BY FINANCE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO ECONOMIC ESTIMATES; AMENDING SECTION 67-6803, IDAHO CODE, TO  PRO-
  3        VIDE ADDITIONAL LIMITS ON EXPENDITURES BY REQUIRING THE LEGISLATURE TO SET
  4        APPROPRIATIONS FOR A FISCAL YEAR BASED ON THE ACTUAL REVENUES COLLECTED IN
  5        THE MOST RECENTLY CONCLUDED FISCAL YEAR LESS THE ACTUAL AMOUNT OF REVENUES
  6        WHICH  WERE  COLLECTED  OR  RECEIVED ON A ONE-TIME BASIS ONLY, TO PROHIBIT
  7        SETTING APPROPRIATIONS WHICH EXCEED SUCH AMOUNT AND  TO  ALLOW  APPROPRIA-
  8        TIONS TO BE SET BELOW SUCH AMOUNT AND TO MAKE TECHNICAL CORRECTIONS.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Section 67-6803, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        67-6803.  EXPENDITURE LIMITS. (a1) The legislature shall not,  by  ongoing
 13    appropriation for any fiscal year, cause the expenditure of general fund reve-
 14    nues for that fiscal year to exceed five and one-third percent (5 1/3%) of the
 15    total  personal  income of the state for the ensuing fiscal year as determined
 16    by the economic estimates commission. One-time general fund appropriations are
 17    not to be included in the expenditure limit.
 18        (b2)  In order  to  permit  the  transference  of  governmental  functions
 19    between the federal and state governments and between the state government and
 20    its political subdivisions and school districts, without abridging the purpose
 21    of  this  act, adjustments to the appropriation percentage limitation of total
 22    personal income shall be specifically detailed in appropriations and shall  be
 23    consistent with the following principles:
 24        (1a)  If,  by  order  of any court or by legislative enactment on or after
 25        January 1, 1980, the costs of a program or any portion thereof are  trans-
 26        ferred  from  a  political subdivision of this state or school district to
 27        the state, the appropriation percentage limitation may  be  commensurately
 28        increased provided the tax revenues of the affected political subdivisions
 29        or school districts are commensurately decreased.
 30        (2b)  If,  by  order  of any court or by legislative enactment on or after
 31        January 1, 1980, the costs of a program or any portion thereof are  trans-
 32        ferred from the state to a political subdivision of this state, the appro-
 33        priation  percentage limitation shall be commensurately decreased, and the
 34        tax rates of the political subdivision may be commensurately increased.
 35        (3c)  If funds provided by the federal government in support of an  exist-
 36        ing  service  or  program  are eliminated or significantly curtailed on or
 37        after January 1, 1980, the  appropriation  percentage  limitation  may  be
 38        commensurately increased by the amount of the increased state costs incur-
 39        red  in  providing such service or program or any portion thereof pursuant
 40        to an order of any court or by legislative enactment.
 41        (4d)  If the costs of a program are transferred from the state to the fed-
 42        eral government on or after January 1, 1980, the appropriation  percentage
 43        limitation shall be commensurately decreased.
                                                                        
                                           2
                                                                        
  1        (3)  In  order  to reduce the difficulties arising from setting appropria-
  2    tions based on projected estimates of revenues, the legislature shall,  begin-
  3    ning with the legislative session of 2006 when setting appropriations from the
  4    general  fund  for  fiscal year 2007, and for each fiscal year thereafter, set
  5    the appropriations according to the following limitations:
  6        (a)  The total amount that may be appropriated for a fiscal year shall  be
  7        based on the actual revenues collected in the most recently concluded fis-
  8        cal  year,  less  the  actual  amount  of revenues which were collected or
  9        received on a one-time basis only; and
 10        (b)  The appropriations set shall not exceed the amount so determined, but
 11        may be set below the amount so determined.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 13933


The purpose of this legislation is to amend Idaho Code 67-6803 to
require that appropriations be set based on actual revenues
(taxes) collected instead of utilizing projections as is the
current practice.
Moving to this budgeting approach may provide more stability and
certainty in state budget.  This change would occur in 2006 for
the 2007 budget.

                          FISCAL IMPACT

The first year of implementation would potentially require a flat
line budget.  In subsequent years it is expected, barring
economic downturn, that growth will occur in budgets as
historical trends show increase in actual revenues collected
every year since 1983 with the exception of the (recession
economic downturn) that occurred in between FY'01 and FY'02.


Contact
Name: Sen. Shawn Keough 
Phone: 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                    S 1378