Bill Text: AZ HCR2032 | 2012 | Fiftieth Legislature 2nd Regular | Introduced


Bill Title: State expenditure limit

Spectrum: Partisan Bill (Republican 20-0)

Status: (Introduced - Dead) 2012-02-23 - Referred to House RULES Committee [HCR2032 Detail]

Download: Arizona-2012-HCR2032-Introduced.html

 

 

 

REFERENCE TITLE: state expenditure limit

 

 

 

 

State of Arizona

House of Representatives

Fiftieth Legislature

Second Regular Session

2012

 

 

HCR 2032

 

Introduced by

Representatives Mesnard, Farnsworth, Harper, Lesko, Proud, Seel, Senators Barto, Lewis, Melvin, Murphy, Yarbrough: Representatives Fillmore, Goodale, Gowan, Judd, Kavanagh, Olson, Pierce, Ugenti, Yee

 

 

A CONCURRENT RESOLUTION

 

Proposing an amendment to the Constitution of Arizona; Amending article IX, section 17, Constitution of Arizona; relating to state budgeting.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 



Be it resolved by the House of Representatives of the State of Arizona, the Senate concurring:

1.  Article IX, section 17, Constitution of Arizona, is proposed to be amended as follows if approved by the voters and on proclamation of the Governor:

START_STATUTE17.  Economic estimates commission; expenditure stabilization; powers and duties of commission

Section 17.  (1) A.  The economic estimates commission shall be established by law, with a membership of not to exceed three members, and shall determine and publish prior to February on or before April 1 of each year the estimated total personal income for the following fiscal year.  By April 1 of each year the commission shall determine and publish a final estimate of the total personal income for the following fiscal year, which estimate shall be used in computing the appropriations limit for the legislature.  For the purposes of this section, "total personal income" means the dollar amount that will be reported as total income by persons for the state of Arizona by the U. S. department of commerce or its successor agency stabilized expenditure limit for the following fiscal year.  The commission shall determine the stabilized expenditure limit by adjusting the amount of actual payments of state revenues for fiscal year 1999‑2000 to reflect the changes in the population of this state and the cost of living.

(2)  B.  For the purposes of this section:

1.  "Cost of living" means the price of goods and services as measured by the implicit price deflator for the gross national product or its successor as reported by the United States department of commerce or its successor agency.

2.  "Expenditure" means any authorization for the payment of state revenues.

3.  "Population" means the periodic census conducted by the United States department of commerce or its successor agency or the annual update of the census by the United States department of commerce or its successor agency.

4.  "State revenues":

(a)  Include Includes all monies, revenues, fees, fines, penalties, funds, tuitions, property and receipts of any kind whatsoever received by or for the account of the state or any of its agencies, departments, offices, boards, commissions, authorities, councils and insitutions institutions except as provided in this subsection paragraph.

(b)  Do Does not include:

(i)  Any amounts or property received from the issuance or incurrence of bonds or other lawful long-term obligations issued or incurred for a specific purpose new capital projects directly or indirectly owned by this state and operated to perform official duties of this state.  For the purpose of this subdivision item, long-term obligations shall not include warrants issued in the ordinary course of operation or registered for payment by the state.  For the purpose of this item, "capital" means real property and permanent improvements to real property.

(ii)  Any amounts or property received as payment of dividends or interest Tuition paid for university education.

(iii)  Any amounts or property received by the state in the capacity of trustee, custodian or agent.

(iv)  Any amounts received from employers for deposit in the unemployment compensation fund or any successor fund.

(v)  Any amounts collected by the state for distribution to counties, cities and towns without specific restrictions on the use of the funds other than the restrictions included in section 14 of this article.

(vi)  Any amounts received as ongoing grants or aid,  contributions or gifts of any type, except voluntary contributions or other contributions received directly or indirectly in lieu of taxes from the federal government and not as temporary aid to replace revenue lost due to economic circumstances.

(vii)  Any amounts received as the proceeds from the sale, lease or redemption of property or as consideration for services or the use of property. Discretionary user charges paid directly for the use of property or for immediate services rendered to the extent that the charges do not exceed the cost of the property or services and the purchase by the user is discretionary.

(viii)  Any amounts received pursuant to a transfer during a fiscal year from another agency, department, office, board, commission, authority, council or institution of the state which were included as state revenues for such fiscal year or which are excluded from state revenue under other provisions of this subsection paragraph.

(ix)  Any amounts attributable to an increase in the rates of tax subsequent to July 1, 1979 on vehicle users, gasoline and diesel fuel which were levied on July 1, 1979.

(x)  Any amounts received during a fiscal year as refunds, reimbursements or other recoveries of amounts appropriated which were applied against the appropriation limitation for such fiscal year or which were excluded from state revenues under other provisions of this subsection paragraph.

(xi)  Proceeds from a permanent endowment, trust funds or pension funds.

(xii)  Proceeds of gifts or bequests that are made for purposes specified by the donor and that do not require ongoing expenditures from other funds.

(xiii)  State tax refunds to taxpayers for taxes already paid.

(xiv)  Transfers to any funds created in accordance with subsection G of this section.

(3)  C.  The legislature shall not appropriate for any fiscal year state revenues in excess of seven per cent of the total personal income of the state for that fiscal year the limit as determined by the economic estimates commission pursuant to subsection A of this section. The limitation may be exceeded upon affirmative vote of two-thirds of the membership of each house of the legislature on each measure that appropriates amounts in excess of the limitation.  If the legislature authorizes a specific dollar amount of appropriation for more than one fiscal year, for the purpose of measuring such appropriation against the appropriation limitation, the entire amount appropriated shall be applied against the limitation in the first fiscal year during which any expenditures are authorized, and in no other fiscal year.

D.  If the economic estimates commission determines that actual spending from state revenues in a given fiscal year exceeded the limitation determined pursuant to subsection A of this section, appropriations for the following fiscal year may not exceed the amount determined pursuant to subsection A of this section less the amount of excess expenditures in the year in which the spending exceeded the limitation.

(4)  E.  In order to permit the transference of governmental functions or funding responsibilities between the federal and state governments and between the state government and its political subdivisions without abridging the purpose of this section to limit state appropriations to a percentage of total personal income, the legislature shall provide for adjustments of the appropriation percentage limitation consistent with the following principles:

(a)  1.  If the federal government assumes all or any part of the cost of providing a governmental function which the state previously funded in whole or in part, the appropriation limitation shall be commensurately decreased.

(b)  2.  If the federal government requires the state to assume all or any part of the cost of providing a governmental function the appropriation limitation shall be commensurately increased.

(c)  3.  If the state assumes all or any part of the cost of providing a governmental function and the state requires the political subdivision, which previously funded all or any part of the cost of the function, to commensurately decrease its tax revenues, the appropriation percentage limitation shall be commensurately increased.

(d)  4.  If a political subdivision assumes all or any part of the cost of providing a governmental function previously funded in whole or in part by the state, the appropriation percentage limitation shall be commensurately decreased.

Any adjustments made pursuant to this subsection shall be made for the first fiscal year of the assumption of the cost. Such adjustment shall remain in effect for each subsequent fiscal year.

F.  The expenditure limit determined pursuant to subsection A of this section does not apply to any payments made on debt principal.

G.  The legislature shall establish at least one fund in which a portion of surplus tax collections shall be deposited and be available for appropriation by the legislature if state revenues in a fiscal year are ninety per cent or less of the stabilized expenditure limit for that fiscal year.

H.  Any legal resident of this state has standing to enforce this section in state court. END_STATUTE

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