HJR 0385 2004
1	House Joint Resolution
2	A joint resolution proposing amendments to Section 1 of
3	Article VII and Section 21 of Article XII of the State
4	Constitution relating to a limitation on state
5	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 Section
10	21 of Article XII of the State Constitution set forth below are
11	agreed to and shall be submitted to the electors of Florida for
12	approval or rejection at the general election to be held in
13	November 2004:
14	ARTICLE VII
15	FINANCE AND TAXATION
16	SECTION 1. Taxation; appropriations; state expenses; state
17	appropriations revenuelimitation.--
18	(a) No tax shall be levied except in pursuance of law. No
19	state ad valorem taxes shall be levied upon real estate or
20	tangible personal property. All other forms of taxation shall be
21	preempted to the state except as provided by general law.
22	(b) Motor vehicles, boats, airplanes, trailers, trailer
23	coaches and mobile homes, as defined by law, shall be subject to
24	a license tax for their operation in the amounts and for the
25	purposes prescribed by law, but shall not be subject to ad
26	valorem taxes.
27	(c) No money shall be drawn from the treasury except in
28	pursuance of appropriation made by law.
29	(d) Provision shall be made by law for raising sufficient
30	revenue to defray the expenses of the state for each fiscal
31	period.
32	(e)(1) State appropriations for any fiscal year shall be
33	limited to state appropriations for the immediately preceding
34	fiscal year plus an adjustment for growth. For purposes of
35	calculating such state appropriations limitation, "state
36	appropriations" shall not include any portion of state
37	appropriations spent or to be spent from receipt of federal
38	funds.
39	(2) The "adjustment for growth" shall be an amount
40	expressed as a percentage equal to the average annual rate of
41	growth in median household income in Florida over the most
42	recent five years. Median household income in Florida shall be
43	that established and published by the United States Department
44	of Commerce or its successor. State appropriations for the
45	immediately preceding fiscal year shall be multiplied by the
46	growth percentage and that product added to the immediately
47	preceding fiscal year's state appropriations to establish the
48	state appropriations limitation for the fiscal year. The state
49	appropriations limitation established under this subsection is
50	calculated by the following formula:
51
52	SAL = (SAPFY x MHIGR%) + SAPFY
53
54	Where:
55	SAL = state appropriations limitation.
56	SAPFY = state appropriations for the immediately preceding
57	fiscal year.
58	MHIGR% = median household income growth rate percentage,
59	averaged over the most recent five years.
60
61	(3) State revenues collected for any fiscal year in excess
62	of the state appropriations limitation shall be transferred to
63	the budget stabilization fund until the fund reaches the maximum
64	balance specified in Section 19(g) of Article III and thereafter
65	shall be refunded to taxpayers as provided by general law. For
66	purposes of this paragraph, "state revenues" includes general
67	revenue and trust fund receipts, but does not include federal
68	fund receipts.
69	(4) The state appropriations limitation required by this
70	subsection shall not apply in any fiscal year in which the
71	governor declares a state financial emergency because of a war,
72	a natural catastrophe, an economic depression, or any event of
73	similar magnitude. However, the legislature must agree by a
74	three-fourths vote of the membership of each house in a separate
75	bill that contains no other subject to suspend the state
76	appropriations limitation for that year. Except as provided
77	herein, state revenues collected for any fiscal year shall be
78	limited to state revenues allowed under this subsection for the
79	prior fiscal year plus an adjustment for growth. As used in this
80	subsection, "growth" means an amount equal to the average annual
81	rate of growth in Florida personal income over the most recent
82	twenty quarters times the state revenues allowed under this
83	subsection for the prior fiscal year. For the 1995-1996 fiscal
84	year, the state revenues allowed under this subsection for the
85	prior fiscal year shall equal the state revenues collected for
86	the 1994-1995 fiscal year. Florida personal income shall be
87	determined by the legislature, from information available from
88	the United States Department of Commerce or its successor on the
89	first day of February prior to the beginning of the fiscal year.
90	State revenues collected for any fiscal year in excess of this
91	limitation shall be transferred to the budget stabilization fund
92	until the fund reaches the maximum balance specified in Section
93	19(g) of Article III, and thereafter shall be refunded to
94	taxpayers as provided by general law. State revenues allowed
95	under this subsection for any fiscal year may be increased by a
96	two-thirds vote of the membership of each house of the
97	legislature in a separate bill that contains no other subject
98	and that sets forth the dollar amount by which the state
99	revenues allowed will be increased. The vote may not be taken
100	less than seventy-two hours after the third reading of the bill.
101	For purposes of this subsection, "state revenues" means taxes,
102	fees, licenses, and charges for services imposed by the
103	legislature on individuals, businesses, or agencies outside
104	state government. However, "state revenues" does not include:
105	revenues that are necessary to meet the requirements set forth
106	in documents authorizing the issuance of bonds by the state;
107	revenues that are used to provide matching funds for the federal
108	Medicaid program with the exception of the revenues used to
109	support the Public Medical Assistance Trust Fund or its
110	successor program and with the exception of state matching funds
111	used to fund elective expansions made after July 1, 1994;
112	proceeds from the state lottery returned as prizes; receipts of
113	the Florida Hurricane Catastrophe Fund; balances carried forward
114	from prior fiscal years; taxes, licenses, fees, and charges for
115	services imposed by local, regional, or school district
116	governing bodies; or revenue from taxes, licenses, fees, and
117	charges for services required to be imposed by any amendment or
118	revision to this constitution after July 1, 1994. An adjustment
119	to the revenue limitation shall be made by general law to
120	reflect the fiscal impact of transfers of responsibility for the
121	funding of governmental functions between the state and other
122	levels of government. The legislature shall, by general law,
123	prescribe procedures necessary to administer this subsection.
124	ARTICLE XII
125	SCHEDULE
126	SECTION 21. State appropriations revenuelimitation.--The
127	amendment to Section 1 of Article VII limiting state
128	appropriations, if adopted at the general election in November
129	2004, revenues shall take effect January 1, 2005 1995, and shall
130	first be applicable to state fiscal year 2005-2006 1995-1996.
131	BE IT FURTHER RESOLVED that the title and substance of the
132	amendment proposed herein shall appear on the ballot as follows:
133	LIMITATION ON STATE APPROPRIATIONS
134	Proposes amendments to Section 1 of Article VII and Section
135	21 of Article XII of the State Constitution to replace the state
136	revenue limitation with an appropriations limitation that limits
137	state appropriations for any fiscal year to state appropriations
138	for the immediately preceding fiscal year plus a growth
139	adjustment; bases the growth adjustment on median household
140	income in Florida rather than on the aggregate personal income
141	of Floridians; continues the transfer of excess revenues to the
142	Budget Stabilization Fund, until fully funded, and refund of the
143	rest to taxpayers pursuant to general law; and suspends the
144	limitation in fiscal years of major financial emergency declared
145	by the Governor and approved by the Legislature by a three-
146	fourths vote of the membership of each house in a separate bill
147	containing no other subject.