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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
]]]] 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 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