LRB-5773/1
CMH:amn
2023 - 2024 LEGISLATURE
2023 ASSEMBLY JOINT RESOLUTIO N 117
February 12, 2024 - Introduced by Representative KATSMA, cosponsored by Senator
MARKLEIN. Referred to Committee on State Affairs.
***AUTHORS SUBJECT TO CHANGE***
To amend section 5 of article VIII of the constitution; relating to: accounting and
expenditure of state funds and reduction of deficit (first consideration).
Analysis by the Legislative Reference Bureau
This constitutional amendment, proposed to the 2023 legislature on first
consideration, requires the state to account for and report all funds it receives or
expends in accordance with generally accepted accounting principles (GAAP).
The amendment further authorizes the legislature to establish the budgetary
basis of accounting, requires that any deficit of a state fund affected by a budget bill
be reduced annually by 10 percent of any projected increase in tax revenues in that
fund, and requires that, once the deficit is eliminated, the legislature may not pass
any bill that would result in a projected deficit.
A constitutional amendment requires adoption by two successive legislatures,
and ratification by the people, before it can become effective.
Resolved by the assembly, the senate concurring, That:
SECTION 1. Section 5 of article VIII of the constitution is amended to read:
[Article VIII] Section 5. The legislature shall provide for an annual tax
sufficient to defray the estimated expenses of the state for each year; and whenever
the expenses of any year shall exceed the income, the legislature shall provide for
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LRB-5773/1
CMH:amn
SECTION 1
2023 - 2024 Legislature
levying a tax for the ensuing year, sufficient, with other sources of income, to pay the
deficiency as well as the estimated expenses of such ensuing year. The legislature
may establish the basis of accounting to be used for budget purposes. In addition to
the statutory basis of accounting, the state shall account for and report all moneys
it receives or spends, including but not limited to component units, in accordance
with generally accepted accounting principles. The legislature may not pass any bill
that would cause an increase in the projected deficit in any state fund under
generally accepted accounting principles. The legislature shall pass an annual or
biennial budget bill that is projected to reduce any existing deficit in any state fund
that is affected by the budget bill reported under generally accepted accounting
principles by at least one-tenth of any projected annual increase of tax revenues
deposited in that state fund in each fiscal year. Once any deficit in a state fund under
generally accepted accounting principles is eliminated, the legislature may not pass
any bill affecting that fund that would result in a projected deficit in that state fund
under generally accepted accounting principles.
Be it further resolved, That this proposed amendment be referred to the
legislature to be chosen at the next general election and that it be published for three
months previous to the time of holding such election.
(END)
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