HCS HJR 70 -- 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 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, 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 substitute.  Any revenue in excess
of the specified limits of the funds will be used to permanently
reduce the income tax rate rounded to the nearest .25%.

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
within five years.

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

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $0 in
FY 2009, $89,440,442 in FY 2010, and $69,976,996 in FY 2011.
Estimated Income on Other State Funds of $0 in FY 2009,
$89,440,442 in FY 2010, and $69,976,996 in FY 2011.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm