Senate Bill sb2776

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    Florida Senate - 2003                                 SJR 2776

    By Senator Haridopolos





    26-2116-03

  1                 Senate Joint Resolution No. ____

  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  this state for approval or rejection at the next general

13  election or at an earlier special election specifically

14  authorized by law for that purpose:

15                           ARTICLE VII

16                       FINANCE AND TAXATION

17         SECTION 1.  Taxation; appropriations; state expenses;

18  state appropriations revenue limitation.--

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

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

21  tangible personal property.  All other forms of taxation shall

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

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

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

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

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

27  subject to ad valorem taxes.

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

29  in pursuance of appropriation made by law.

30  

31  

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    Florida Senate - 2003                                 SJR 2776
    26-2116-03




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

 2  sufficient revenue to defray the expenses of the state for

 3  each fiscal period.

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

 5  be limited to state appropriations for the prior fiscal year

 6  plus an adjustment for growth.  For purposes of calculating

 7  such state appropriations limitation, "state appropriations"

 8  shall not include any portion of state appropriations spent or

 9  to be spent from receipt of federal funds.

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

11  expressed as a percentage equal to the average annual rate of

12  growth in median household income in Florida over the most

13  recent five years.  Median household income in Florida shall

14  be that established and published by the United States

15  Department of Commerce or its successor.  State appropriations

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

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

18  state appropriations to establish the state appropriations

19  limitation for the fiscal year.  The state appropriations

20  limitation established under this subsection is calculated by

21  the following formula:

22  

23                  SAL = (SAPFY x MHIGR%) + SAPFY

24  

25  Where:

26         SAL = state appropriations limitation.

27         SAPFY = state appropriations for the prior fiscal year.

28         MHIGR% = median household income growth rate

29  percentage, averaged over the most recent five years.

30  

31  

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    Florida Senate - 2003                                 SJR 2776
    26-2116-03




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

 2  excess of the state appropriations limitation shall be

 3  transferred to the budget stabilization fund until the fund

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

 5  Article III and thereafter shall be refunded to taxpayers as

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

 7  "state revenues" includes general revenue and trust fund

 8  receipts, but does not include federal fund receipts.

 9         (4)  The state appropriations limitation required by

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

11  the governor declares a state financial emergency on the order

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

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

14  agree by a three-fourths vote of the membership of each house

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

16  the state appropriations limitation for that year.  Except as

17  provided herein, state revenues collected for any fiscal year

18  shall be limited to state revenues allowed under this

19  subsection for the prior fiscal year plus an adjustment for

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

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

22  income over the most recent twenty quarters times the state

23  revenues allowed under this subsection for the prior fiscal

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

25  allowed under this subsection for the prior fiscal year shall

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

27  year.  Florida personal income shall be determined by the

28  legislature, from information available from the United States

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

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

31  revenues collected for any fiscal year in excess of this

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    Florida Senate - 2003                                 SJR 2776
    26-2116-03




 1  limitation shall be transferred to the budget stabilization

 2  fund until the fund reaches the maximum balance specified in

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

 4  to taxpayers as provided by general law. State revenues

 5  allowed under this subsection for any fiscal year may be

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

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

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

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

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

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

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

13  by the legislature on individuals, businesses, or agencies

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

15  include:  revenues that are necessary to meet the requirements

16  set forth in documents authorizing the issuance of bonds by

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

18  for the federal Medicaid program with the exception of the

19  revenues used to support the Public Medical Assistance Trust

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

21  matching funds used to fund elective expansions made after

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

23  prizes; receipts of the Florida Hurricane Catastrophe Fund;

24  balances carried forward from prior fiscal years; taxes,

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

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

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

28  imposed by any amendment or revision to this constitution

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

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

31  transfers of responsibility for the funding of governmental

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    Florida Senate - 2003                                 SJR 2776
    26-2116-03




 1  functions between the state and other levels of government.

 2  The legislature shall, by general law, prescribe procedures

 3  necessary to administer this subsection.

 4                           ARTICLE XII

 5                             SCHEDULE

 6         SECTION 21.  State appropriations revenue

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

 8  limiting state appropriations, if adopted at the general

 9  election in November 2004, revenues shall take effect January

10  1, 2005 1995, and shall first be applicable to state fiscal

11  year 2005-2006 1995-1996.

12         BE IT FURTHER RESOLVED that the following statement be

13  placed on the ballot:

14                     CONSTITUTIONAL AMENDMENT

15                      ARTICLE VII, SECTION 1

16                     ARTICLE XII, SECTION 21

17         LIMITATION ON STATE APPROPRIATIONS.--Proposing

18  amendments to the State Constitution to replace the state

19  revenue limitation with an appropriations limitation that

20  limits state appropriations for any fiscal year to state

21  appropriations for the prior fiscal year plus a growth

22  adjustment; basing the growth adjustment on Florida median

23  household income rather than on the aggregate personal income

24  of Floridians; continuing the transfer of excess revenues to

25  the Budget Stabilization Fund, until fully funded, and refund

26  of the rest to taxpayers pursuant to general law; and

27  suspending the limitation in fiscal years of major financial

28  emergency declared by the Governor and approved by the

29  Legislature by extraordinary vote in a separate bill

30  containing no other subject.

31  

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