REFERENCE TITLE: fund transfers; limitations

State of Arizona House of Representatives Fifty-fourth Legislature First Regular Session 2019

HCR 2034

Introduced by Representative Allen J

 

A CONCURRENT RESOLUTION

 

proposing an amendment to the constitution of arizona; amending Article IX, Constitution of Arizona, by adding section 26; relating to state finances.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it resolved by the House of Representatives of the State of Arizona, the Senate concurring:

1.  Article IX, Constitution of Arizona, is proposed to be amended by adding section 26 as follows if approved by the voters and on proclamation of the Governor:

26.  Budget stabilization fund; separate funds; transfer; prohibition; definitions

Section 26.  A.  The legislature shall establish a budget stabilization fund that provides for the following:

1.  In a calendar year in which the annual growth rate exceeds the trend growth rate, the excess growth when multiplied by total state 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.

2.  In a calendar year in which the annual growth rate is both less than two percent and less than the trend growth rate, the difference between the annual growth rate and the trend growth rate when multiplied by the total state 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 paragraph may not exceed the available balance in the fund, and the legislature may not transfer an amount that exceeds the amount sufficient to balance the state general fund budget.

B.  Except for the state general fund, the legislature may not appropriate or divert monies in a fund established for or allocated to a specific purpose unless both of the following occur:

1.  The balance in the budget stabilization fund is less than one percent of the state general fund revenue for the preceding fiscal year.

2.  At least two‑thirds of the members of each house of the legislature, by a roll call of ayes and nays, vote to appropriate or divert such funds.

C.  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 percent.

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 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 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 percent.

2.  The Secretary of State shall submit this proposition to the voters at the next general election as provided by article XXI, Constitution of Arizona.