Bill Text: AZ HB2791 | 2012 | Fiftieth Legislature 2nd Regular | Engrossed
Bill Title: Limitation on state expenditures
Spectrum: Partisan Bill (Republican 19-0)
Status: (Engrossed - Dead) 2012-03-26 - Senate RULES Committee action: Proper For Consideration [HB2791 Detail]
Download: Arizona-2012-HB2791-Engrossed.html
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House Engrossed |
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State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
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HOUSE BILL 2791 |
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AN ACT
Amending title 35, chapter 1, Arizona Revised Statutes, by adding article 2.2; amending section 35‑144, Arizona Revised Statutes; relating to state expenditure limits.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 35, chapter 1, Arizona Revised Statutes, is amended by adding article 2.2, to read:
ARTICLE 2.2. STATE EXPENDITURE LIMITS
35-132. Definition of state general fund revenues
In this article, "state general fund revenues":
1. Means all monies, revenues, fees, fines, penalties, funds, property and receipts deposited in the state general fund, after distributions to the urban revenue sharing fund established by section 43‑206.
2. Does not include any carryforward balance from the prior fiscal year.
35-132.01. State general fund revenue and allowable budgeted general fund revenue estimates
Beginning in 2013, on or before January 1 of each year, the joint legislative budget committee shall determine and publish:
1. The actual amount of state general fund revenues in the preceding fiscal year.
2. The estimates of the maximum amount of budgeted general fund revenues allowable under this article for the immediately following fiscal year. The estimates shall be used in computing the amount of budgeted general fund revenue allowable under this article for the following fiscal year.
35-132.02. Maximum annual budgeted general fund revenues; adjustments
A. For fiscal year 2013-2014 and for each fiscal year thereafter, the maximum amount of budgeted general fund revenues for the fiscal year shall not exceed the maximum amount of budgeted general fund revenues under this article for the second preceding fiscal year, or the actual amount of state general fund revenues in the second preceding fiscal year, whichever is less, adjusted as determined by the joint legislative budget committee pursuant to this section.
B. Notwithstanding subsection A of this section, for fiscal years 2013‑2014 and 2014‑2015 the maximum amount of budgeted general fund revenues for the fiscal year shall not exceed the actual amount of budgeted general fund revenues in the second preceding fiscal year, or the actual amount of the state general fund revenues in the second preceding fiscal year, whichever is less, adjusted as determined by the joint legislative budget committee pursuant to this section.
C. For each fiscal year the joint legislative budget committee shall adjust the maximum amount of budgeted general fund revenues according to the positive or negative percentage changes in the twenty year rolling average of state general fund revenue growth, excluding the two years with the highest and the two years with the lowest state general fund revenue growth.
D. In order to permit the assumption and devolution of governmental functions and responsibilities among the various levels of government, and consistent with the purposes of this section, the legislature shall provide for adjusting the limitation on state general fund appropriations under this subsection consistent with the following principles:
1. If the responsibility for funding all or part of the cost of a governmental function or program is transferred from this state to the federal government, a tribal government or a local level of government, the limitation on state general fund appropriations under this section shall be commensurately reduced.
2. If the responsibility for funding all or part of the cost of a governmental function or program is transferred to this state from the federal government, a tribal government or a local level of government, the limitation on state general fund appropriations under this section shall be commensurately increased.
3. Any adjustment pursuant to this subsection shall be made for the first fiscal year of the transfer and shall remain in effect until a subsequent adjustment.
4. Each act providing for the devolution from or assumption by this state of the responsibility for funding all or part of the cost of a governmental function or program shall include a separate provision describing the requirements of this subsection and providing for the increase or decrease in the limitation on state general fund appropriations under this section.
E. If the legislature provides for the transfer or diversion of revenues, which would otherwise have been credited to the state general fund, to another state fund, the limitation on state general fund appropriations under this section shall be commensurately reduced. An adjustment pursuant to this subsection shall be made in the first fiscal year of the transfer or diversion and shall remain in effect as long as the transfer or diversion continues.
35-132.03. Maximum annual general fund appropriations; disposition of excess general fund revenues
A. For fiscal year 2013‑2014 and for each fiscal year thereafter, the legislature shall not appropriate general fund revenues in an amount exceeding the maximum budgeted general fund revenues as determined pursuant to section 35‑132.02, except as provided by this section.
B. If general fund revenues in any fiscal year exceed the maximum amount of budgeted general fund revenues as determined pursuant to section 35‑132.02, the legislature shall provide for the disposition of the excess amount in the following order of priority:
1. In the case of a catastrophic natural disaster, payments of the emergency costs incurred by this state. Monies appropriated pursuant to this paragraph:
(a) May be used only to pay current extraordinary nonrecurring expenses that could not have been reasonably foreseen or prevented and that are required immediately to preserve the health, safety and general welfare of the public.
(b) May not be used to pay the ordinary costs of administering, maintaining or operating state government or to meet revenue or budget shortfalls of state government.
2. Payments of:
(a) Certificates of participation and other instruments of indebtedness pursuant to lease-purchase and the sale and leaseback agreements relating to state capital assets, and revenue bonds whose proceeds were used to pay the ordinary costs of administering and operating state government.
(b) Any obligations for the restoration of general fund payments deferred from one fiscal year to another.
(c) Principal, interest and issuance, redemption and administrative costs, paid with state general fund monies, of obligations of this state or of any department, office, agency, commission, board or other instrumentality of state government, including instruments commonly known as certificates of participation, general obligation bonds, revenue bonds and long‑term notes and obligations not included in subdivision (a) of this paragraph.
3. Payments to the budget stabilization fund established by section 35‑144.
4. Payments as a refund to persons who filed individual income tax returns in the fiscal year. The refunds must be paid within four months after the end of the fiscal year. The legislature may limit refunds under this paragraph to amounts of ten dollars or more.
Sec. 2. Section 35-144, Arizona Revised Statutes, is amended to read:
35-144. Budget stabilization fund; definitions
A. The budget stabilization fund is established consisting of monies transferred from the state general fund pursuant to subsection B of this section. The state treasurer shall administer the fund and invest and divest monies in the fund as provided by sections 35‑313 and 35‑314.02, and monies earned from investment shall be credited to the fund. Except as provided by this section:
1. Monies in the fund are exempt from the provisions of section 35‑190 relating to the reversion of monies to the state general fund.
2. The monies in the fund are separate monies to be used only for the purposes of the fund.
B. In a calendar year in which the annual growth rate exceeds the trend growth rate, the excess growth when multiplied by total general fund revenue of the fiscal year ending in the calendar year determines the amount to be appropriated by the legislature to the budget stabilization fund in the fiscal year in which the calendar year ends. State general fund monies shall be appropriated by the legislature to the budget stabilization fund consistent with section 35‑132.03.
C. In a calendar year in which the annual growth rate is both less than two per cent and less than the trend growth rate, the difference between the annual growth rate and the trend growth rate when multiplied by the total general fund revenue of the fiscal year ending in the calendar year determines the amount to be transferred by the legislature from the budget stabilization fund to the state general fund at the end of the fiscal year in which the calendar year ends. The transfer calculated pursuant to this subsection shall not exceed the available balance in the fund, nor shall the legislature transfer an amount which that exceeds the amount sufficient to balance the general fund budget.
D. The legislature shall pass a bill which that contains the emergency clause if the legislature either:
1. Reduces the amount for appropriation to the budget stabilization fund under subsection B of this section.
2. increases the amount for transfer to the state general fund under subsection C of this section.
E. The annual budget recommendations of the governor and the joint legislative budget committee shall include estimates of appropriations or transfers required under subsection B or C of this section.
F. A final determination of the amount to be appropriated to or transferred from the budget stabilization fund shall be made using personal income and price deflator estimates as reported in the second calendar quarter for the preceding calendar year. The economic estimates commission shall determine the annual growth rate, the trend growth rate and the required appropriation to or transfer from the budget stabilization fund at its first meeting following the second calendar quarter report of the United States department of commerce, but not later than June 1. The commission shall certify and report its findings to the governor, the state treasurer, the president of the senate, the speaker of the house of representatives and the joint legislative budget committee.
G. The appropriation calculated made pursuant to subsection B of this section may be included in the general appropriation bill for that fiscal year. Any additional appropriation calculated pursuant to subsection F of this section shall be made by separate act.
H. At the end of a fiscal year, the budget stabilization fund balance shall not exceed 5.634 per cent for fiscal year 1997‑1998, 6.333 per cent for fiscal year 1998‑1999 and seven per cent for fiscal year 1999‑2000 and each subsequent fiscal year of general fund revenue for each fiscal year. Any surplus monies above the allowable percentages shall be transferred by the state treasurer to the state general fund.
I. The state treasurer may temporarily divest monies in the budget stabilization fund to avoid a negative cash balance in operating monies. The amount divested shall not exceed the amount required to meet immediate cash needs. The state treasurer may divest monies in the budget stabilization fund only when the general fund has a negative cash balance.
J. In For the purposes of this section:
1. "Adjusted personal income" means personal income minus transfer payments, as reported by the United States department of commerce, bureau of economic analysis, or its successor agency.
2. "Annual growth rate" means the percentage change in real adjusted personal income in the calendar year ending during a fiscal year as compared to real adjusted personal income for the preceding calendar year. The annual growth rate shall be rounded to the nearest one‑hundredth of one per cent.
3. "GDP price deflator" means the gross domestic product price deflator reported by the United States department of commerce, bureau of economic analysis, or its successor agency.
4. "Personal income" means the total personal income of all persons in this state reported by the United States department of commerce, bureau of economic analysis, or its successor agency.
5. "Real adjusted personal income" means an amount which that is determined by dividing adjusted personal income by the GDP price deflator and multiplying the result by one hundred.
6. "Transfer payments" means that portion of personal income which that represents a government expenditure for which no service is rendered or product is delivered, as determined by the United States department of commerce, bureau of economic analysis, or its successor agency.
7. "Trend growth rate" means the average annual growth rate for the most recent seven calendar years, rounded to the nearest one‑hundredth of one per cent.
Sec. 3. Short title
This act may be referred to as the "Fiscal Accountability Act".
