House Bill 0441

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    Florida House of Representatives - 2000                HJR 441

        By Representative Wallace






  1                      House Joint Resolution

  2         A joint resolution proposing amendments to

  3         Section 1 of Article VII and Section 21 of

  4         Article XII of the State Constitution relating

  5         to a limitation on state appropriations.

  6

  7  Be It Resolved by the Legislature of the State of Florida:

  8

  9         That the amendments to Section 1 of Article VII and

10  Section 21 of Article XII of the State Constitution set forth

11  below are agreed to and shall be submitted to the electors of

12  Florida for approval or rejection at the general election to

13  be held in November 2000:

14                           ARTICLE VII

15                       FINANCE AND TAXATION

16         SECTION 1.  Taxation; appropriations; state expenses;

17  state appropriations revenue limitation.--

18         (a)  No tax shall be levied except in pursuance of law.

19  No state ad valorem taxes shall be levied upon real estate or

20  tangible personal property.  All other forms of taxation shall

21  be preempted to the state except as provided by general law.

22         (b)  Motor vehicles, boats, airplanes, trailers,

23  trailer coaches and mobile homes, as defined by law, shall be

24  subject to a license tax for their operation in the amounts

25  and for the purposes prescribed by law, but shall not be

26  subject to ad valorem taxes.

27         (c)  No money shall be drawn from the treasury except

28  in pursuance of appropriation made by law.

29         (d)  Provision shall be made by law for raising

30  sufficient revenue to defray the expenses of the state for

31  each fiscal period.

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    Florida House of Representatives - 2000                HJR 441

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  1         (e)(1)  State appropriations for any fiscal year shall

  2  be limited to state appropriations for the prior fiscal year

  3  plus an adjustment for growth.  For purposes of calculating

  4  such state appropriations limitation, "state appropriations"

  5  shall not include any portion of state appropriations spent or

  6  to be spent from receipt of federal funds.

  7         (2)  The "adjustment for growth" shall be an amount

  8  expressed as a percentage equal to the sum of the average

  9  annual rate of growth in median household income in Florida

10  over the most recent five years plus the rate of growth of the

11  population of Florida projected for the fiscal year.  Median

12  household income in Florida shall be that established and

13  published by the United States Department of Commerce or its

14  successor, and the population of Florida shall be that

15  estimated by the legislature's Office of Economic and

16  Demographic Research or its successor.  State appropriations

17  for the prior fiscal year shall be multiplied by the growth

18  percentage and that product added to the prior fiscal year's

19  state appropriations to establish the state appropriations

20  limitation for the fiscal year.  The state appropriations

21  limitation established under this subsection is calculated by

22  the following formula:

23

24             SAL = {SAPFY x (MHIGR% + PGR%)} + SAPFY

25

26  Where:

27         SAL = state appropriations limitation.

28         SAPFY = state appropriations for the prior fiscal year.

29         MHIGR% = median household income growth rate

30  percentage, averaged over the most recent five years.

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    Florida House of Representatives - 2000                HJR 441

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  1         PGR% = population growth rate percentage, projected for

  2  the fiscal year.

  3

  4         (3)  State revenues collected for any fiscal year in

  5  excess of the state appropriations limitation shall be

  6  transferred to the budget stabilization fund until the fund

  7  reaches the maximum balance specified in Section 19(g) of

  8  Article III and thereafter shall be refunded to taxpayers as

  9  provided by general law.  For purposes of this subsection,

10  "state revenues" includes general revenue and trust fund

11  receipts, but does not include federal fund receipts.

12         (4)  The state appropriations limitation required by

13  this subsection shall not apply in any fiscal year in which

14  the governor declares a state financial emergency on the order

15  of a war, a natural catastrophe, an economic depression, or

16  any event of similar magnitude.  However, the legislature must

17  agree by a three-quarters vote of the membership of each house

18  in a separate bill that contains no other subject to suspend

19  the state appropriations limitation for that year.  Except as

20  provided herein, state revenues collected for any fiscal year

21  shall be limited to state revenues allowed under this

22  subsection for the prior fiscal year plus an adjustment for

23  growth.  As used in this subsection, "growth" means an amount

24  equal to the average annual rate of growth in Florida personal

25  income over the most recent twenty quarters times the state

26  revenues allowed under this subsection for the prior fiscal

27  year. For the 1995-1996 fiscal year, the state revenues

28  allowed under this subsection for the prior fiscal year shall

29  equal the state revenues collected for the 1994-1995 fiscal

30  year.  Florida personal income shall be determined by the

31  legislature, from information available from the United States

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    Florida House of Representatives - 2000                HJR 441

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  1  Department of Commerce or its successor on the first day of

  2  February prior to the beginning of the fiscal year. State

  3  revenues collected for any fiscal year in excess of this

  4  limitation shall be transferred to the budget stabilization

  5  fund until the fund reaches the maximum balance specified in

  6  Section 19(g) of Article III, and thereafter shall be refunded

  7  to taxpayers as provided by general law.  State revenues

  8  allowed under this subsection for any fiscal year may be

  9  increased by a two-thirds vote of the membership of each house

10  of the legislature in a separate bill that contains no other

11  subject and that sets forth the dollar amount by which the

12  state revenues allowed will be increased. The vote may not be

13  taken less than seventy-two hours after the third reading of

14  the bill.  For purposes of this subsection, "state revenues"

15  means taxes, fees, licenses, and charges for services imposed

16  by the legislature on individuals, businesses, or agencies

17  outside state government.  However, "state revenues" does not

18  include:  revenues that are necessary to meet the requirements

19  set forth in documents authorizing the issuance of bonds by

20  the state; revenues that are used to provide matching funds

21  for the federal Medicaid program with the exception of the

22  revenues used to support the Public Medical Assistance Trust

23  Fund or its successor program and with the exception of state

24  matching funds used to fund elective expansions made after

25  July 1, 1994; proceeds from the state lottery returned as

26  prizes; receipts of the Florida Hurricane Catastrophe Fund;

27  balances carried forward from prior fiscal years; taxes,

28  licenses, fees, and charges for services imposed by local,

29  regional, or school district governing bodies; or revenue from

30  taxes, licenses, fees, and charges for services required to be

31  imposed by any amendment or revision to this constitution

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    Florida House of Representatives - 2000                HJR 441

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  1  after July 1, 1994. An adjustment to the revenue limitation

  2  shall be made by general law to reflect the fiscal impact of

  3  transfers of responsibility for the funding of governmental

  4  functions between the state and other levels of government.

  5  The legislature shall, by general law, prescribe procedures

  6  necessary to administer this subsection.

  7                           ARTICLE XII

  8                             SCHEDULE

  9         SECTION 21.  State appropriations revenue

10  limitation.--The amendment to Section 1 of Article VII

11  limiting state appropriations, if adopted at the general

12  election in November 2000, revenues shall take effect January

13  1, 2001 1995, and shall first be applicable to state fiscal

14  year 2001-2002 1995-1996.

15         BE IT FURTHER RESOLVED that in accordance with the

16  requirements of section 101.161, Florida Statutes, the title

17  and substance of the amendments proposed herein shall appear

18  on the ballot as follows:

19                LIMITATION ON STATE APPROPRIATIONS

20         Replaces the state's revenue limitation with an

21  appropriations limitation indexed to the growth rate in state

22  median household income and the projected growth rate in state

23  population.  Transfers excess revenues to the Budget

24  Stabilization Fund, until fully funded, and refunds the rest

25  to taxpayers.  Suspends the limitation in fiscal years of

26  major financial emergency declared by the Governor and

27  approved by the Legislature by extraordinary vote in a

28  separate bill containing no other subject.

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