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*********************************** 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
]]]] 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 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