HJR 0687 2004
1	House Joint Resolution
2	A joint resolution proposing an amendment to Section 19 of
3	Article III and the creation of Section 19 of Article VII
4	of the State Constitution to require that a portion of the
5	increase in net general revenue funds collected each year
6	be deposited into the Budget Stabilization Fund until the
7	Budget Stabilization Fund is at its maximum level, to
8	require that an annual 5-year forecast be prepared by the
9	Legislature, and to place conditions on the approval by
10	the Legislature of the issuance of state tax-supported
11	debt.
12
13	Be It Resolved by the Legislature of the State of Florida:
14
15	That the amendment to Section 19 of Article III and the
16	creation of Section 19 of Article VII of the State Constitution
17	set forth below are agreed to and shall be submitted to the
18	electors of Florida for approval or rejection at the general
19	election to be held in November 2004:
20	ARTICLE III
21	LEGISLATURE
22	SECTION 19. State Budgeting, Planning and Appropriations
23	Processes.--
24	(a) ANNUAL BUDGETING. Effective July 1, 1994, general law
25	shall prescribe the adoption of annual state budgetary and
26	planning processes and require that detail reflecting the
27	annualized costs of the state budget and reflecting the
28	nonrecurring costs of the budget requests shall accompany state
29	department and agency legislative budget requests, the
30	governor's recommended budget, and appropriation bills. For
31	purposes of this subsection, the terms department and agency
32	shall include the judicial branch.
33	(b) APPROPRIATION BILLS FORMAT. Separate sections within
34	the general appropriation bill shall be used for each major
35	program area of the state budget; major program areas shall
36	include: education enhancement "lottery" trust fund items;
37	education (all other funds); human services; criminal justice
38	and corrections; natural resources, environment, growth
39	management, and transportation; general government; and judicial
40	branch. Each major program area shall include an itemization of
41	expenditures for: state operations; state capital outlay; aid to
42	local governments and nonprofit organizations operations; aid to
43	local governments and nonprofit organizations capital outlay;
44	federal funds and the associated state matching funds; spending
45	authorizations for operations; and spending authorizations for
46	capital outlay. Additionally, appropriation bills passed by the
47	legislature shall include an itemization of specific
48	appropriations that exceed one million dollars ($1,000,000.00)
49	in 1992 dollars. For purposes of this subsection, "specific
50	appropriation," "itemization," and "major program area" shall be
51	defined by law. This itemization threshold shall be adjusted by
52	general law every four years to reflect the rate of inflation or
53	deflation as indicated in the Consumer Price Index for All Urban
54	Consumers, U.S. City Average, All Items, or successor reports as
55	reported by the United States Department of Labor, Bureau of
56	Labor Statistics or its successor. Substantive bills containing
57	appropriations shall also be subject to the itemization
58	requirement mandated under this provision and shall be subject
59	to the governor's specific appropriation veto power described in
60	Article III, Section 8. This subsection shall be effective July
61	1, 1994.
62	(c) APPROPRIATIONS REVIEW PROCESS. Effective July 1,
63	1993, general law shall prescribe requirements for each
64	department and agency of state government to submit a planning
65	document and supporting budget request for review by the
66	appropriations committees of both houses of the legislature. The
67	review shall include a comparison of the major issues in the
68	planning document and budget requests to those major issues
69	included in the governor's recommended budget. For purposes of
70	this subsection, the terms department and agency shall include
71	the judicial branch.
72	(d) SEVENTY-TWO HOUR PUBLIC REVIEW PERIOD. All general
73	appropriation bills shall be furnished to each member of the
74	legislature, each member of the cabinet, the governor, and the
75	chief justice of the supreme court at least seventy-two hours
76	before final passage by either house of the legislature of the
77	bill in the form that will be presented to the governor.
78	(e) FINAL BUDGET REPORT. Effective November 4, 1992, a
79	final budget report shall be prepared as prescribed by general
80	law. The final budget report shall be produced no later than the
81	90th day after the beginning of the fiscal year, and copies of
82	the report shall be furnished to each member of the legislature,
83	the head of each department and agency of the state, the auditor
84	general, and the chief justice of the supreme court.
85	(f) TRUST FUNDS.
86	(1) No trust fund of the State of Florida or other public
87	body may be created by law without a three-fifths (3/5) vote of
88	the membership of each house of the legislature in a separate
89	bill for that purpose only.
90	(2) State trust funds in existence before the effective
91	date of this subsection shall terminate not more than four years
92	after the effective date of this subsection. State trust funds
93	created after the effective date of this subsection shall
94	terminate not more than four years after the effective date of
95	the act authorizing the creation of the trust fund. By law the
96	legislature may set a shorter time period for which any trust
97	fund is authorized.
98	(3) Trust funds required by federal programs or mandates;
99	trust funds established for bond covenants, indentures, or
100	resolutions, whose revenues are legally pledged by the state or
101	public body to meet debt service or other financial requirements
102	of any debt obligations of the state or any public body; the
103	state transportation trust fund; the trust fund containing the
104	net annual proceeds from the Florida Education Lotteries; the
105	Florida retirement trust fund; trust funds for institutions
106	under the management of the Board of Regents, where such trust
107	funds are for auxiliary enterprises and contracts, grants, and
108	donations, as those terms are defined by general law; trust
109	funds that serve as clearing funds or accounts for the chief
110	financial officer or state agencies; trust funds that account
111	for assets held by the state in a trustee capacity as an agent
112	or fiduciary for individuals, private organizations, or other
113	governmental units; and other trust funds authorized by this
114	Constitution, are not subject to the requirements set forth in
115	paragraph (2) of this subsection.
116	(4) All cash balances and income of any trust funds
117	abolished under this subsection shall be deposited into the
118	general revenue fund.
119	(5) The provisions of this subsection shall be effective
120	November 4, 1992.
121	(g) BUDGET STABILIZATION FUND. Beginning with the 1994-
122	1995 fiscal year, at least 1% of an amount equal to the last
123	completed fiscal year's net revenue collections for the general
124	revenue fund shall be retained in a budget stabilization fund.
125	The budget stabilization fund shall be increased to at least 2%
126	of said amount for the 1995-1996 fiscal year, at least 3% of
127	said amount for the 1996-1997 fiscal year, at least 4% of said
128	amount for the 1997-1998 fiscal year, and at least 5% of said
129	amount for the 1998-1999 fiscal year. Subject to the provisions
130	of this subsection, the budget stabilization fund shall be
131	maintained at an amount equal to at least 5% of the last
132	completed fiscal year's net revenue collections for the general
133	revenue fund. The budget stabilization fund's principal balance
134	shall not exceed an amount equal to 10% of the last completed
135	fiscal year's net revenue collections for the general revenue
136	fund. In any fiscal year in which net revenue collections for
137	the general revenue fund exceed net revenue collections for the
138	general revenue fund collected during the previous fiscal year,
139	25% of this excess amount shall be deposited into the budget
140	stabilization fund until the budget stabilization fund reaches
141	the maximum balance allowed pursuant to this section.The
142	legislature shall provide criteria for withdrawing funds from
143	the budget stabilization fund in a separate bill for that
144	purpose only and only for the purpose of covering revenue
145	shortfalls of the general revenue fund or for the purpose of
146	providing funding for an emergency, as defined by general law.
147	General law shall provide for the restoration of this fund. The
148	budget stabilization fund shall be comprised of funds not
149	otherwise obligated or committed for any purpose.
150	(h) STATE PLANNING DOCUMENT AND DEPARTMENT AND AGENCY
151	PLANNING DOCUMENT PROCESSES. The governor shall recommend to
152	the legislature biennially any revisions to the state planning
153	document, as defined by law. General law shall require a
154	biennial review and revision of the state planning document,
155	shall require the governor to report to the legislature on the
156	progress in achieving the state planning document's goals, and
157	shall require all departments and agencies of state government
158	to develop planning documents consistent with the state planning
159	document. The state planning document and department and agency
160	planning documents shall remain subject to review and revision
161	by the legislature. The department and agency planning documents
162	shall include a prioritized listing of planned expenditures for
163	review and possible reduction in the event of revenue
164	shortfalls, as defined by general law. To ensure productivity
165	and efficiency in the executive, legislative, and judicial
166	branches, a quality management and accountability program shall
167	be implemented by general law. For the purposes of this
168	subsection, the terms department and agency shall include the
169	judicial branch. This subsection shall be effective July 1,
170	1993.
171	(i) ANNUAL FORECAST. Effective July 1, 2005, the
172	legislature shall prepare annually, as prescribed by general
173	law, a five-year forecast of state revenue collections,
174	expenditures, and projected needs and future commitments of the
175	state. This forecast shall include documentation of any planned
176	issuance of debt or projections of the need for issuing debt to
177	address future needs of the state.
178	ARTICLE VII
179	FINANCE AND TAXATION
180	SECTION 19. State debt; limitation.--The legislature may
181	authorize the issuance of additional state tax-supported debt
182	only when such authorization would not cause the ratio of debt
183	service to revenue available to pay debt service on tax-
184	supported debt to exceed 6 percent. If the 6-percent ratio will
185	be exceeded, the authorization of such debt must be accompanied
186	by a legislative statement of determination that such
187	authorization and issuance is in the best interest of the state
188	and should be implemented. The legislature may not authorize the
189	issuance of additional state tax-supported debt if such
190	authorization would cause the ratio of debt service to revenue
191	available to pay debt service to exceed 7 percent, except upon a
192	vote of three-fourths of the membership of each house of the
193	legislature.
194	BE IT FURTHER RESOLVED that the title and substance of the
195	amendment proposed herein shall appear on the ballot as follows:
196	PRESERVING FLORIDA'S FISCAL INTEGRITY
197	Proposes an amendment to Section 19 of Article III and the
198	creation of Section 19 of Article VII of the State Constitution
199	to provide that one-fourth of the annual increase in net general
200	revenue funds collected by the state must be placed in the
201	Budget Stabilization Fund until the fund balance equals 10
202	percent of the previous year's net general revenue fund
203	collections, to reduce the amount of general revenue funds
204	available to the Legislature for appropriation for other
205	purposes, and to place a presumptive limit on the percentage of
206	state tax revenues that may be pledged to pay for debt service;
207	requires a specific determination by the Legislature when
208	approving the issuance of state tax-supported debt which will
209	approach the limit that the issuance is in the best interest of
210	the state; requires a vote of three-fourths of the membership of
211	each house of the Legislature to approve the issuance of state
212	tax-supported debt above the presumptive limit; and requires
213	that the Legislature prepare an annual 5-year forecast of
214	revenue collections, expenditures, and needs, including a
215	projection of additional debt requirements.