SJR9 – Expenditure limitation constitutional amendment
SJR9 proposes an amendment to the Iowa Constitution that creates a state General Fund expenditure limitation requirement to be used for establishing a General Fund budget for a subsequent fiscal year. The proposed expenditure limitation would be the lesser of these two options:
- 99 percent of the adjusted revenue estimate established by the Revenue Estimating Conference (REC) for the next fiscal year.
- The net revenue estimate for the current fiscal year increases by 4 percent.
The Legislature may suspend this by passing a joint resolution, subject to approval by the Governor, by two-thirds of the members elected to the House and to the Senate.
This resolution is similar to Iowa’s current 99 percent expenditure limitation in Iowa Code. There are two differences from current law:
- Current law does not include the alternative adjusted revenue estimate calculation that incorporates increases to the current fiscal year by 4 percent.
- Current law allows the balance from the previous year’s surplus, after the reserved funds are filled, to carry forward to the next fiscal year and be added to the expenditure limitation. SJR9 does not calculate the carry forward surplus into the expenditure limitation.
SJR 9 requires the Legislature to pass legislation to implement the constitutional amendment after it is ratified by Iowa voters. A constitutional amendment must pass to two General Assemblies before being ratified by Iowa voters.
[3/16: 38-10 (Bolkcom, Dotzler, Dvorsky, Hogg, Horn, Jochum, McCoy, Petersen, Quirmbach, Taylor “no”; Bertrand, Zumbach absent)]