Senate Bill sb2198

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    Florida Senate - 2003                                 SJR 2198

    By Senator Klein





    43-1239-03                                              See HB

  1                 Senate Joint Resolution No. ____

  2         A joint resolution proposing an amendment to

  3         Section 19 of Article III and the creation of

  4         Section 19 of Article VII of the State

  5         Constitution to require that a portion of the

  6         increase in net general revenue funds collected

  7         each year be deposited into the Budget

  8         Stabilization Fund until the Budget

  9         Stabilization Fund is at its maximum level, to

10         require that an annual 5-year forecast be

11         prepared by the Legislature, and to place

12         conditions on the approval by the Legislature

13         of the issuance of state tax-supported debt.

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

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17         That the amendment to Section 19 of Article III and the

18  creation of Section 19 of Article VII of the State

19  Constitution set forth below are agreed to and shall be

20  submitted to the electors of this state for approval or

21  rejection at the next general election or at an earlier

22  special election specifically authorized by law for that

23  purpose:

24                           ARTICLE III

25                           LEGISLATURE

26         SECTION 19.  State Budgeting, Planning and

27  Appropriations Processes.--

28         (a)  ANNUAL BUDGETING.  Effective July 1, 1994, General

29  law shall prescribe the adoption of annual state budgetary and

30  planning processes and require that detail reflecting the

31  annualized costs of the state budget and reflecting the

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    Florida Senate - 2003                                 SJR 2198
    43-1239-03                                              See HB




 1  nonrecurring costs of the budget requests shall accompany

 2  state department and agency legislative budget requests, the

 3  governor's recommended budget, and appropriation bills. For

 4  purposes of this subsection, the terms department and agency

 5  shall include the judicial branch.

 6         (b)  APPROPRIATION BILLS FORMAT. Separate sections

 7  within the general appropriation bill shall be used for each

 8  major program area of the state budget; major program areas

 9  shall include: education enhancement "lottery" trust fund

10  items; education (all other funds); human services; criminal

11  justice and corrections; natural resources, environment,

12  growth management, and transportation; general government; and

13  judicial branch. Each major program area shall include an

14  itemization of expenditures for: state operations; state

15  capital outlay; aid to local governments and nonprofit

16  organizations operations; aid to local governments and

17  nonprofit organizations capital outlay; federal funds and the

18  associated state matching funds; spending authorizations for

19  operations; and spending authorizations for capital outlay.

20  Additionally, appropriation bills passed by the legislature

21  shall include an itemization of specific appropriations that

22  exceed one million dollars ($1,000,000.00) in 1992 dollars.

23  For purposes of this subsection, "specific appropriation,"

24  "itemization," and "major program area" shall be defined by

25  law. This itemization threshold shall be adjusted by general

26  law every four years to reflect the rate of inflation or

27  deflation as indicated in the Consumer Price Index for All

28  Urban Consumers, U.S. City Average, All Items, or successor

29  reports as reported by the United States Department of Labor,

30  Bureau of Labor Statistics or its successor. Substantive bills

31  containing appropriations shall also be subject to the

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    Florida Senate - 2003                                 SJR 2198
    43-1239-03                                              See HB




 1  itemization requirement mandated under this provision and

 2  shall be subject to the governor's specific appropriation veto

 3  power described in Article III, Section 8.  This subsection

 4  shall be effective July 1, 1994.

 5         (c)  APPROPRIATIONS REVIEW PROCESS. Effective July 1,

 6  1993, general law shall prescribe requirements for each

 7  department and agency of state government to submit a planning

 8  document and supporting budget request for review by the

 9  appropriations committees of both houses of the legislature.

10  The review shall include a comparison of the major issues in

11  the planning document and budget requests to those major

12  issues included in the governor's recommended budget. For

13  purposes of this subsection, the terms department and agency

14  shall include the judicial branch.

15         (d)  SEVENTY-TWO HOUR PUBLIC REVIEW PERIOD. All general

16  appropriation bills shall be furnished to each member of the

17  legislature, each member of the cabinet, the governor, and the

18  chief justice of the supreme court at least seventy-two hours

19  before final passage by either house of the legislature of the

20  bill in the form that will be presented to the governor.

21         (e)  FINAL BUDGET REPORT. Effective November 4, 1992,

22  final budget report shall be prepared as prescribed by general

23  law. The final budget report shall be produced no later than

24  the 90th day after the beginning of the fiscal year, and

25  copies of the report shall be furnished to each member of the

26  legislature, the head of each department and agency of the

27  state, the auditor general, and the chief justice of the

28  supreme court.

29         (f)  TRUST FUNDS.

30         (1)  No trust fund of the State of Florida or other

31  public body may be created by law without a three-fifths (3/5)

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    Florida Senate - 2003                                 SJR 2198
    43-1239-03                                              See HB




 1  vote of the membership of each house of the legislature in a

 2  separate bill for that purpose only.

 3         (2)  State trust funds in existence before the

 4  effective date of this subsection shall terminate not more

 5  than four years after the effective date of this subsection.

 6  State trust funds created after the effective date of this

 7  subsection shall terminate not more than four years after the

 8  effective date of the act authorizing the creation of the

 9  trust fund. By law the legislature may set a shorter time

10  period for which any trust fund is authorized.

11         (3)  Trust funds required by federal programs or

12  mandates; trust funds established for bond covenants,

13  indentures, or resolutions, whose revenues are legally pledged

14  by the state or public body to meet debt service or other

15  financial requirements of any debt obligations of the state or

16  any public body; the state transportation trust fund; the

17  trust fund containing the net annual proceeds from the Florida

18  Education Lotteries; the Florida retirement trust fund; trust

19  funds for institutions under the management of the Board of

20  Regents, where such trust funds are for auxiliary enterprises

21  and contracts, grants, and donations, as those terms are

22  defined by general law; trust funds that serve as clearing

23  funds or accounts for the chief financial officer or state

24  agencies; trust funds that account for assets held by the

25  state in a trustee capacity as an agent or fiduciary for

26  individuals, private organizations, or other governmental

27  units; and other trust funds authorized by this Constitution,

28  are not subject to the requirements set forth in paragraph (2)

29  of this subsection.

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    Florida Senate - 2003                                 SJR 2198
    43-1239-03                                              See HB




 1         (4)  All cash balances and income of any trust funds

 2  abolished under this subsection shall be deposited into the

 3  general revenue fund.

 4         (5)  The provisions of this subsection shall be

 5  effective November 4, 1992.

 6         (g)  BUDGET STABILIZATION FUND. Beginning with the

 7  1994-1995 fiscal year, at least 1% of an amount equal to the

 8  last completed fiscal year's net revenue collections for the

 9  general revenue fund shall be retained in a budget

10  stabilization fund. The budget stabilization fund shall be

11  increased to at least 2% of said amount for the 1995-1996

12  fiscal year, at least 3% of said amount for the 1996-1997

13  fiscal year, at least 4% of said amount for the 1997-1998

14  fiscal year, and at least 5% of said amount for the 1998-1999

15  fiscal year. Subject to the provisions of this subsection, the

16  budget stabilization fund shall be maintained at an amount

17  equal to at least 5% of the last completed fiscal year's net

18  revenue collections for the general revenue fund. The budget

19  stabilization fund's principal balance shall not exceed an

20  amount equal to 10% of the last completed fiscal year's net

21  revenue collections for the general revenue fund. In any

22  fiscal year in which net revenue collections for the general

23  revenue fund exceed net revenue collections for the general

24  revenue fund collected during the previous fiscal year, 25% of

25  this excess amount shall be deposited into the budget

26  stabilization fund until the budget stabilization fund reaches

27  the maximum balance allowed pursuant to this section. The

28  legislature shall provide criteria for withdrawing funds from

29  the budget stabilization fund in a separate bill for that

30  purpose only and only for the purpose of covering revenue

31  shortfalls of the general revenue fund or for the purpose of

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    Florida Senate - 2003                                 SJR 2198
    43-1239-03                                              See HB




 1  providing funding for an emergency, as defined by general law.

 2  General law shall provide for the restoration of this fund.

 3  The budget stabilization fund shall be comprised of funds not

 4  otherwise obligated or committed for any purpose.

 5         (h)  STATE PLANNING DOCUMENT AND DEPARTMENT AND AGENCY

 6  PLANNING DOCUMENT PROCESSES. The governor shall recommend to

 7  the legislature biennially any revisions to the state planning

 8  document, as defined by law. General law shall require a

 9  biennial review and revision of the state planning document,

10  shall require the governor to report to the legislature on the

11  progress in achieving the state planning document's goals, and

12  shall require all departments and agencies of state government

13  to develop planning documents consistent with the state

14  planning document. The state planning document and department

15  and agency planning documents shall remain subject to review

16  and revision by the legislature. The department and agency

17  planning documents shall include a prioritized listing of

18  planned expenditures for review and possible reduction in the

19  event of revenue shortfalls, as defined by general law. To

20  ensure productivity and efficiency in the executive,

21  legislative, and judicial branches, a quality management and

22  accountability program shall be implemented by general law.

23  For the purposes of this subsection, the terms department and

24  agency shall include the judicial branch. This subsection

25  shall be effective July 1, 1993.

26         (i)  ANNUAL FORECAST. Effective July 1, 2005, the

27  legislature shall prepare, as prescribed by general law, a

28  five-year forecast of state revenue collections, expenditures,

29  and projected needs and future commitments of the state. This

30  forecast shall include documentation of any planned issuance

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    Florida Senate - 2003                                 SJR 2198
    43-1239-03                                              See HB




 1  of debt or projections of the need for issuing debt to address

 2  future needs of the state.

 3                           ARTICLE VII

 4                       FINANCE AND TAXATION

 5         SECTION 19.  State debt; limitation.--The legislature

 6  may authorize the issuance of additional state tax-supported

 7  debt only when such authorization would not cause the ratio of

 8  debt service to revenue available to pay debt service on

 9  tax-supported debt to exceed 6 percent. If the 6-percent ratio

10  will be exceeded, the authorization of such debt must be

11  accompanied by a legislative statement of determination that

12  such authorization and issuance is in the best interest of the

13  state and should be implemented. The legislature may not

14  authorize the issuance of additional state tax-supported debt

15  if such authorization would cause the ratio of debt service to

16  revenue available to pay debt service to exceed 7 percent,

17  except upon a vote of three-fourths of the membership of each

18  house of the legislature.

19         BE IT FURTHER RESOLVED that the following statement be

20  placed on the ballot:

21                     CONSTITUTIONAL AMENDMENT

22                     ARTICLE III, SECTION 19

23                     ARTICLE VII, SECTION 19

24         PRESERVING FLORIDA'S FISCAL INTEGRITY.--Proposes an

25  amendment to Section 19 of Article III and the creation of

26  Section 19 of Article VII of the State Constitution to provide

27  that one-fourth of the annual increase in net general revenue

28  funds collected by the state must be placed in the Budget

29  Stabilization Fund until the fund balance equals 10 percent of

30  the previous year's net general revenue fund collections, to

31  reduce the amount of general revenue funds available to the

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    Florida Senate - 2003                                 SJR 2198
    43-1239-03                                              See HB




 1  Legislature for appropriation for other purposes, and to place

 2  a presumptive limit on the percentage of state tax revenues

 3  that may be pledged to pay for debt service; requires a

 4  specific determination by the Legislature when approving the

 5  issuance of state tax-supported debt which will approach the

 6  limit that the issuance is in the best interest of the state;

 7  requires a vote of three-fourths of the membership of each

 8  house of the Legislature to approve the issuance of state

 9  tax-supported debt above the presumptive limit; and requires

10  that the Legislature prepare an annual 5-year forecast of

11  revenue collections, expenditures, and needs, including a

12  projection of additional debt requirements.

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