SJR 10 - This constitutional amendment, if approved by the voters, establishes the "Taxpayer Protection Act", which prohibits total state general revenue appropriations from being greater in any fiscal year than in the immediately preceding fiscal year, allowing for growth in an amount equal to the annual rate of inflation plus the annual percentage change in state population. Total state general revenue appropriations may exceed the previous fiscal year's amount only under certain conditions, as described in the amendment. For any fiscal year in which net general revenue collections exceed total state general revenue appropriations by more than one percent of the total state general revenue appropriations, the excess funds shall be transferred to the cash operating reserve fund, which is created by the amendment, and to the budget reserve fund. (Section 23)
This amendment establishes the cash operating reserve fund. Sixty-seven percent of the balance in the budget reserve fund on July 1 following the adoption of this amendment shall be transferred to the cash operating reserve fund. Thirty-three percent of the balance shall remain in the budget reserve fund. The Commissioner of Administration may transfer funds from the cash operating reserve fund to the general revenue fund or any other state fund if he or she determines that such amount are necessary for the cash requirements of the state. If the balance in the cash operating reserve fund at the close of a fiscal year is below five percent of net general revenue collections, the difference shall stand appropriated. If the balance exceeds five percent of net general revenue collections, the excess amounts shall be transferred to the general revenue fund and shall be tracked by the Commissioner of Administration and shall be applied to the permanent reduction of all state income tax rates rounded to the nearest one-quarter of one percent. (Section 27(a))
Funds may be transferred from the budget reserve fund upon proclamation by the governor of an emergency or that reductions in expenditures of the state need to be restored and no other funds are available. Such fund transfer shall be approved by a two-thirds vote of both houses of the General Assembly. If the balance in the budget reserve fund at the close of a fiscal year exceeds seven percent of net general revenue collections, the excess amounts shall be transferred to the general revenue fund. If the balance is below seven percent of net general revenue collections, the difference shall stand appropriated.
This amendment is identical to HCS/HJR 56 (2016), and is similar to SJR 31 (2018) and SJR 12 (2017).
JOSHUA NORBERG