HJR 48 -- Limits on State Appropriations

Sponsor:  Bearden

This proposed constitutional amendment prohibits, upon voter
approval, 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 is the greater of zero or the sum of the annual rate
of inflation and the annual Missouri population growth.

For any fiscal year in which the net general revenue collections
are in excess of 1% of the authorized net general revenue
appropriations allowed, the excess is to be transferred in equal
amounts to the Cash Operating Reserve Fund and the Budget Reserve
Fund, which are created by the bill.  Any revenue in excess of
the specified limits of the funds will be refunded, pro rata,
based on tax liabilities reported in the tax year in which the
fiscal year ended.  Any taxpayer can designate on his or her
state income tax return that any refund be credited to the
taxpayer's future tax years.

Total state general revenue appropriations may exceed the
appropriations limit only if the Governor declares an emergency
and the General Assembly approves appropriation bills to meet the
emergency.  The funds appropriated to meet the emergency 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.

One-half 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 exceeds
5% of the net general revenue collected in the previous fiscal
year, the excess amount will be transferred to the General
Revenue 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
General Revenue Fund.  If the balance is less than 7%, the
difference will be transferred from the General Revenue Fund.

Funds appropriated from the Budget Reserve Fund must be paid back
within five years of the original transfer date.

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:46 am