AB7: Bill Text

LRB-2317/2

JTK:kmg:km

1995 - 1996 LEGISLATURE

1995 Assembly BILL 7

January 9, 1995 - Introduced by Representatives Foti, Powers, Vrakas, Hoven, Olsen, Ainsworth, Freese, Duff, Handrick, Johnsrud, Jensen, Kreibich, Kaufert, Harsdorf, Musser, Owens, Silbaugh, Seratti, Kelso, Green, Coleman, Ourada, Klusman, Brancel, Underheim, Walker, Ward, Zukowski, Schneiders, Prosser, Porter, Albers and Goetsch. Referred to Committee on Ways and Means.

AB7,1,3 An Act to amend 20.001 (3) (d); and to create 13.40 of the statutes; relating to: a limitation upon state appropriations and expenditures from general purpose revenue.

Analysis by the Legislative Reference Bureau

This bill creates a statutory provision which states that the sum of the total sum certain appropriations enacted by the legislature from general purpose revenue for any fiscal year and the total expenditures made under sum sufficient appropriations from general purpose revenue for that fiscal year may not exceed the sum of the amount appropriated for those sum certain appropriations in the previous fiscal year and the amount expended from those sum sufficient appropriations in the previous fiscal year, as affected by the rate of change in this state's per capita personal income between the 2 most recent calendar years preceding that fiscal year.

The limit does not apply to any appropriation for principal repayment and interest payments on public debt, any appropriation providing for state aids to local governments or any appropriation that is required to meet an unanticipated fiscal emergency which requires general purpose revenue expenditures to preserve the health, safety or welfare of this state, if the appropriation is enacted with the approval of at least two-thirds of the members of each house of the legislature and is expendable for a period not exceeding 12 months (extendable for one additional 12-month period by similar action). The limit also does not apply to any appropriation that is required to meet the increased costs of a federal mandate. In addition, the limit does not apply to any appropriation that is enacted with the approval of at least two-thirds of the members of each house of the legislature to meet the increased costs of a locally administered program. The limit is reduced by amounts allocated by the federal government or local governments to fund programs that the state previously funded.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB7, s. 1 Section 1. 13.40 of the statutes is created to read:

AB7,2,4 13.40 Limitation on state appropriations and expenditures from general purpose revenue. (1) In this section, "general purpose revenue" has the meaning given in s. 20.001 (2) (a).

AB7,2,14 (2) Except as provided in subs. (3) to (5), the sum of the total sum certain appropriations enacted by the legislature from general purpose revenue for any fiscal year and the total expenditures made under sum sufficient appropriations from general purpose revenue for that fiscal year may not exceed the sum of the total sum certain appropriations enacted by the legislature from general purpose revenue for the previous fiscal year and the total expenditures made under sum sufficient appropriations from general purpose revenue for that fiscal year multiplied by the sum of 1.0 and the percentage change in this state's per capita personal income between the preceding calendar year and the 2nd preceding calendar year expressed as a decimal, as determined by the secretary of administration.

AB7,2,15 (3) The limitation under sub. (2) does not apply to any of the following:

AB7,2,17 (a) Any appropriation for principal repayment and interest payments on public debt, as defined in s. 18.01 (4).

AB7,2,18 (b) Any appropriation providing for state aids to any local government.

AB7,3,5 (c) Any appropriation that is required to meet an unanticipated fiscal emergency which requires general purpose revenue expenditures to preserve the health, safety or welfare of this state, if the appropriation is enacted with the approval of at least two-thirds of the members of each house of the legislature and if the appropriation is expendable for a period of not more than 12 months, except that during the final month of that period, with the approval of two-thirds of the members of each house, the legislature by law may extend for not more than 12 months the time during which that appropriation is expendable.

AB7,3,10 (d) Any appropriation that is required to meet the increased costs incurred in any fiscal year of any program administered by this state that is mandated by the federal government, exceeding those costs incurred in the preceding fiscal year, if the program was created or changed in such a way as to increase state costs as compared with the preceding fiscal year.

AB7,3,15 (e) Any appropriation that is required to meet the increased costs incurred in any fiscal year of funding a program administered by this state that was funded by the federal government in the preceding fiscal year, if the appropriation is enacted with the approval of at least two-thirds of the members of each house of the legislature.

AB7,3,19 (f) Any appropriation that is required to meet the increased costs incurred in any fiscal year of funding a program administered by local governments in the preceding fiscal year, if the appropriation is enacted with the approval of at least two-thirds of the members of each house of the legislature.

AB7,3,24 (4) Whenever in any fiscal year the federal government assumes fiscal responsibility for a state program previously funded from general purpose revenues, the limitation under sub. (2) for the next fiscal year shall be reduced by the amount allocated to that program for the most recently completed fiscal year in which the state assumed fiscal responsibility for the program.

AB7,4,6 (5) Whenever in any fiscal year the legislature terminates or reduces the cost of administering a program administered by local governments that is partially funded by the state, the limitation under sub. (2) for the next fiscal year shall be reduced by the amount allocated by the state to that program or by the amount of the reduced state cost of administering that program for the most recently completed fiscal year.

AB7,4,9 (6) The secretary of administration shall proportionately limit expenditures from each sum sufficient appropriation made from general purpose revenue for each fiscal year to the rate of increase or decrease specified in this section.

AB7, s. 2 Section 2. 20.001 (3) (d) of the statutes is amended to read:

AB7,4,17 20.001 (3) (d) Sum sufficient appropriations. Sum sufficient appropriations, indicated by the abbreviation "S" in s. 20.005, are appropriations which are expendable from the indicated source in the amounts necessary to accomplish the purpose specified, except as otherwise required under s. 13.40 (6). Dollar amounts shown under s. 20.005 represent the most reliable estimate of the amounts which will be needed. Sum sufficient appropriations are indicated in ss. 20.115 to 20.875 by the introductory phrase "a sum sufficient".

AB7,4,18 (End)