2017 - 2018 LEGISLATURE
March 7, 2018 - Introduced by Senator Marklein, cosponsored by Representative
Macco. Referred to Committee on Insurance, Financial Services,
Constitution and Federalism.
section 5 of article VIII of the constitution; relating to: accounting and
2expenditure of state funds and reduction of deficit (first consideration).
Analysis by the Legislative Reference Bureau
This constitutional amendment, proposed to the 2017 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.
3Resolved by the senate, the assembly concurring, That:
Section 5 of article VIII of the constitution is amended to read:
[Article VIII] Section 5. The legislature shall provide for an annual tax 6
sufficient to defray the estimated expenses of the state for each year; and whenever 7
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 2
deficiency as well as the estimated expenses of such ensuing year.
3may establish the basis of accounting to be used for budget purposes. In addition to
4the statutory basis of accounting, the state shall account for and report all funds it
5receives or spends including, but not limited to, component units in accordance with
6generally accepted accounting principles. The legislature may not pass any bill that
7would cause an increase in the projected deficit in any state fund under generally
8accepted accounting principles. The legislature shall pass an annual or biennial
9budget bill that is projected to reduce any existing deficit in any state fund that is
10affected by the budget bill reported under generally accepted accounting principles
11by at least one-tenth of any projected annual increase of tax revenues deposited in
12that state fund in each fiscal year. Once any deficit in a state fund under generally
13accepted accounting principles is eliminated, the legislature may not pass any bill
14affecting that fund that would result in a projected deficit in that state fund under
15generally accepted accounting principles.
16Be it further resolved, That
this proposed amendment be referred to the 17
legislature to be chosen at the next general election and that it be published for three 18
months previous to the time of holding such election.