LRB-5773/1
CMH:amn
2023 - 2024 LEGISLATURE
February 12, 2024 - Introduced by Representative Katsma, cosponsored by Senator
Marklein. Referred to Committee on State Affairs.
AJR117,1,2
1To amend 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 2023 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.
AJR117,1,3
3Resolved by the
assembly, the senate concurring, That:
AJR117,1
4Section 1
. Section 5 of article VIII of the constitution is amended to read:
AJR117,2,155
[Article VIII] Section 5. The legislature shall provide for an annual tax
6sufficient to defray the estimated expenses of the state for each year; and whenever
7the expenses of any year shall exceed the income, the legislature shall provide for
1levying a tax for the ensuing year, sufficient, with other sources of income, to pay the
2deficiency as well as the estimated expenses of such ensuing year.
The legislature
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 moneys
5it receives or spends, including but not limited to component units, in accordance
6with generally accepted accounting principles. The legislature may not pass any bill
7that would cause an increase in the projected deficit in any state fund under
8generally accepted accounting principles. The legislature shall pass an annual or
9biennial budget bill that is projected to reduce any existing deficit in any state fund
10that is affected by the budget bill reported under generally accepted accounting
11principles by at least one-tenth of any projected annual increase of tax revenues
12deposited in that state fund in each fiscal year. Once any deficit in a state fund under
13generally accepted accounting principles is eliminated, the legislature may not pass
14any bill affecting that fund that would result in a projected deficit in that state fund
15under generally accepted accounting principles.
AJR117,2,18
16Be it further resolved, That this proposed amendment be referred to the
17legislature to be chosen at the next general election and that it be published for three
18months previous to the time of holding such election.