HCS HJR 87 -- LIMITS ON STATE APPROPRIATIONS (Icet)

COMMITTEE OF ORIGIN:  Committee on Budget

Upon voter approval, this proposed constitutional amendment
prohibits appropriations in any fiscal year from exceeding the
total state general revenue appropriations from the previous year
by more than the appropriations growth limit.  The appropriations
growth limit will be the percentage that is the greater of zero
or the sum of the annual rate of inflation and the annual
percentage change in Missouri's population.

In any fiscal year when the net general revenue collections are
in excess of 1.5% but no more than 2.5% of the authorized total
state general revenue appropriations allowed, the excess moneys
will be appropriated solely for capital improvements and repairs
and maintenance.  In any fiscal year when the net general revenue
collections are in excess of 2.5% of the authorized total state
general revenue appropriations allowed, 67% of the excess is to
be transferred to the Cash Operating Reserve Fund and 33% to the
Budget Reserve Fund which are created by the resolution.  Any
revenue in excess of the specified limits of the funds will be
transferred to the Taxpayer Protection Stabilization Fund,
created by the resolution, and used to temporarily reduce the
individual income tax rate when the Commissioner of the Office of
Administration determines that sufficient amounts exist in the
fund for at least a .25% reduction.  The resolution authorizes
the General Assembly, by a simple majority vote, to appropriate
moneys from the Taxpayer Protection Stabilization Fund if the
commissioner determines that total state general revenue
appropriations will exceed projected state revenues.

Total state general revenue appropriations may exceed the
appropriations limit only if the Governor declares an emergency
and the General Assembly, by a simple majority, approves
appropriation bills to meet the emergency.  These appropriated
funds will not increase the appropriation limit for the
succeeding fiscal year.

New or increased tax revenues or fees receiving voter approval
will be exempt from the calculation of the appropriations growth
limit for the year in which they are passed.

Sixty-seven percent of the balance in the Budget Reserve Fund on
July 1 of each year is to be transferred to the Cash Operating
Reserve Fund.  If the balance in the Cash Operating Reserve Fund
at the close of any fiscal year exceeds 5% of the net general
revenue collected in the previous fiscal year, the excess amount
must be transferred to the Taxpayer Protection Stabilization
Fund.

In any fiscal year in which the Governor reduces expenditures
below amounts appropriated, the Governor may request an emergency
appropriation from the Budget Reserve Fund.  If the request is
approved by the General Assembly, funds may be restored to any
expenditure authorized by existing appropriations.  If the
balance in the Budget Reserve Fund at the end of a fiscal year
exceeds 7% of the net general revenue collections for the
previous fiscal year, the excess funds will be transferred to the
Taxpayer Protection Stabilization Fund.  If the balance is less
than 7%, the difference will be transferred from the General
Revenue Fund within five years.

The provisions of the resolution will expire five years from the
effective date.

FISCAL NOTE:  Estimated Effect on General Revenue Fund of an
income of $0 or a cost of More than $7,000,000 in FY 2011, an
income of $0 or a cost of $60,003,992 in FY 2012, and an income
of $0 or a cost of $60,003,992 in FY 2013.  Estimated Income on
Other State Funds of $0 in FY 2011, $0 or $60,003,992 in FY 2012,
and $0 or $60,003,992 in FY 2013.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:14 pm