Vote Smart's Synopsis:

Vote to pass a joint resolution that submits a constitutional amendment to the voters that establishes annual limits on the state general fund.

Highlights:

• Prohibits annual increases in the state budget, above state revenue taken for the 2008 fiscal year, from being more than the appropriations growth limit defined as the sum of (Sec. A):
• The annual rate of inflation and population growth; and
• 1.5 percent of the revenue collected in the previous fiscal year.

• Requires excess annual state revenue to be used to reduce the state debt for any fiscal year in which state revenue exceeds the preceding year’s revenue by more than 1.5 percent but less than 2.5 percent (Sec. A).

• Requires excess annual state revenue to be placed in reserve funds for any fiscal year in which state revenue is at least 2.5 percent more than the preceding year's revenue as follows (Sec. A):
• 33 percent shall be allocated to a budget reserve fund; and
• 67 percent shall be allocated to a cash operating reserve fund.

• Requires a reduction in the state income tax of at least 0.25 percent when either of the following conditions are met (Sec. A):
• The balance of the cash operating reserve fund exceeds 5 percent of state revenue collected in the previous year; or
• The balance in the budget reserve fund exceeds 7 percent of state revenue collected in the previous year.

• Authorizes the commissioner of administration to transfer funds from the cash operating reserve fund to state agencies (Sec. A).

• Authorizes the governor to request an emergency restoration of funds from the budget reserve fund during years in which the government reduces the budget of state agencies and programs as a result of the appropriations growth limit (Sec. A).

• Authorizes certain actions during declared states of emergency including, but not limited to, the following (Sec. A):
• The governor may request the use of funds from the budget reserve fund;
• State spending is authorized to grow by more than the appropriations growth limit; and
• Emergency funds will not be included in the calculation of the appropriations growth limit for the following year.

• Authorizes the appropriations growth limit to remain unchanged when the previous year’s revenue is less than the current year’s revenue (Sec. A).

Full Bill Text