SJR85: Joint Resolution Text

LRB-1339/1

CMH:skw

2021 - 2022 LEGISLATURE

2021 Senate JOINT RESOLUTION 85

January 3, 2022 - Introduced by Senators Marklein, Kooyenga, Kapenga, Bernier, Nass and Stroebel, cosponsored by Representatives Katsma, Dittrich, Knodl, Krug, Murphy, Novak, Oldenburg, Thiesfeldt, Tranel, Wichgers, Zimmerman and Behnke. Referred to Committee on Financial Institutions and Revenue.

SJR85,1,2 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 2021 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.

SJR85,1,3 Resolved by the senate, the assembly concurring, That:

SJR85,1 Section 1 . Section 5 of article VIII of the constitution is amended to read:

SJR85,2,15 [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 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 funds 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.

SJR85,2,18 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.

SJR85,2,19 (End)