LRB-3050/1
JK:jld&wlj:jf
2007 - 2008 LEGISLATURE
February 13, 2008 - Introduced by Representatives F. Lasee, Kramer, Lothian,
Pridemore, Strachota, Vos, Vukmir and Zipperer, cosponsored by Senators
Grothman, Kedzie and Lazich. Referred to Committee on Ways and Means.
AJR99,1,5
1To create section 11 of article VIII of the constitution;
relating to: creating fiscal
2year allowable revenues for the state and local governmental units, returning
3excess revenue to the taxpayers, requiring electoral approval for certain taxing
4and spending decisions, and allowing local governmental units to exempt
5themselves from certain state mandates (first consideration).
Analysis by the Legislative Reference Bureau
This proposed constitutional amendment, proposed to the 2007 legislature on
first consideration, provides that the state or a school district, technical college
district, or other local governmental unit, not including a town with less than
$1,000,000 in allowable revenue, may not collect more in allowable revenue in any
fiscal year than the amount of its allowable revenue in the previous year, increased
by the lesser of the average percentage increase, if any, in the consumer price index
for the three most recent years for which the information is available or the average
percentage increase, if any, in state personal income for the three most recent years
for which the information is available, plus the following:
1. For the state, the estimated percentage of any increase in state population,
corrected over a three-year period.
2. For school districts, the annual percentage increase in student enrollment,
if any, averaged over the previous 3 years.
3. For technical college districts and all other local governmental units, the
percentage increase, if any, from the previous year in taxable property values
attributable to new construction, less the value of any taxable property removed or
demolished, in that governmental unit.
Under the proposed amendment, revenues collected in excess of allowable
revenue are returned to the taxpayers or, in the case of the state, deposited into a
budget stabilization fund. The state may spend moneys from the fund only to
provided tax relief, in the case of certain emergencies, or in any fiscal year in which
the amount of allowable revenue is greater than the amount of collected revenue.
Under the proposed amendment, elector approval at a referendum is necessary
to increase any entity's allowable revenue, incur debt service by an amount that
exceeds 7 percent of allowable revenue, or exclude any tax, fee, or charge from
allowable revenue. In addition, a local governmental unit may exempt itself from
any new mandate imposed by the state that is not fully funded by the state or from
any mandate for which the state reduces the percentage of the costs the state pays
for the mandate.
A proposed constitutional amendment requires adoption by two successive
legislatures, and ratification by the people, before it can become effective.
AJR99,2,1
1Resolved by the assembly, the senate concurring, That:
AJR99, s. 1
2Section
1. Section 11 of article VIII of the constitution is created to read:
AJR99,2,33
[Article VIII] Section 11 (1) In this section:
AJR99,2,54
(a) "Economic development bond" means a bond issued to finance real property
5improvements that are directly related to economic development.
AJR99,2,96
(b) "Inflation-income factor" means the lesser of the average percentage
7increase, if any, for the 3 most recent years available in the consumer price index for
8Milwaukee-Racine, or its successor index, or the average percentage increase, if any,
9in state personal income for the 3 most recent years available.
AJR99,3,410
(c) "Revenue" means all moneys, except enterprise funds, bonding revenue,
11moneys used for debt service on a minimum 80 percent self-funding economic
12development bond, moneys received for the operation of sanitary sewers or a
13telephone, gas, electric, or water utility, or nongovernmental moneys received for
14medical care provided by hospitals, nursing homes, assisted living facilities, or other
15medical facilities operated by any entity subject to this section, moneys received from
16the federal government, gifts, damage awards, real or personal property sales,
1unemployment insurance taxes, insurance premiums, employee payments for fringe
2benefits, governmental property insurance, investment trusts, private purpose
3trusts, college savings programs, or from tuition or fees paid by or on behalf of
4students to support university or technical college functions.
AJR99,3,105
(2) Beginning with the first fiscal year 180 days after ratification of this section,
6the state, or a school district, technical college district, or other local governmental
7unit that collects revenue, excluding a town that has less than $1,000,000 in
8allowable revenue, may not collect more in allowable revenue in any fiscal year than
9the amount of its allowable revenue in the previous year, increased by the
10inflation-income factor, plus:
AJR99,3,1311
(a) For the state, the estimated percentage of any increase in state population,
12adjusted by the decennial census and corrected over a 3-year period as provided by
13law.
AJR99,3,1514
(b) For school districts, the annual percentage increase in student enrollment,
15if any, averaged over the previous 3 years available.
AJR99,3,1916
(c) For technical college districts and all other local governmental units, as
17applied to revenues not provided by the state, the percentage increase, if any, from
18the previous year in taxable property values attributable to new construction, less
19the value of any taxable property removed or demolished, in that governmental unit.
AJR99,3,2220
(3) If the state increases any category of state aid to local governmental units
21or the university by less than the inflation-income factor, the state's allowable
22revenue shall be reduced by that amount.
AJR99,3,2523
(4) (a) Revenues collected in excess of allowable revenue shall be returned to
24the taxpayers in the next fiscal year or, in the case of the state, deposited into a budget
25stabilization fund, not to exceed 7 percent of that fiscal year's allowable revenue.
AJR99,4,6
1(b) The legislature by law may spend from the budget stabilization fund only
2to provide tax relief, for an emergency event that causes real and personal property
3damage exceeding 1.5 percent of allowable revenue or death, grave bodily harm, or
4imminent threat of death or grave bodily harm to at least 0.1 percent of the state's
5population, or in any fiscal year in which the amount of allowable revenue is greater
6than the amount of collected revenue, but not to exceed allowable revenues.
AJR99,4,97
(6) The legislature by law shall provide for revenue neutral adjustments to
8allowable revenues to accommodate the transfer of services between and among
9governmental units, including such transfers that occur as a result of annexation.
AJR99,4,1110
(7) Allowable revenues under this section may be reduced by law, ordinance,
11or resolution, as appropriate, or by initiative and elector approval at a referendum.
AJR99,4,1312
(8) The state or any local governmental unit may do any of the following only
13with the approval of the electorate at a referendum:
AJR99,4,1714
(a) Increase allowable revenue under this section. The ballot question shall
15express the proposed excess as a dollar amount and as a percentage increase
16compared with allowable revenues and shall indicate whether the excess is recurring
17or nonrecurring.
AJR99,4,2118
(b) Incur debt service by an amount that exceeds 7 percent of allowable
19revenue. The ballot question shall express the proposed increase as a dollar amount
20and as a percentage of allowable revenues and shall indicate the time period for
21which the debt service shall exceed 7 percent of allowable revenue.
AJR99,4,2522
(c) Exclude any tax, fee, or charge from allowable revenue. The ballot question
23shall express the tax, fee, or charge as a dollar amount, as a percentage of allowable
24revenues, and as estimated revenues for each of the next 3 years and shall indicate
25the purpose.
AJR99,5,3
1(9) A local governmental unit may exempt itself from any new mandate
2imposed by the state that is not fully funded by the state or from any mandate for
3which the state reduces the percentage of the costs the state pays for the mandate.
AJR99,5,54
(10) Any resident or any person who pays income or property taxes to this state
5or to any local governmental unit, may bring a suit to enforce this section.
AJR99, s. 2
6Section
2. Numbering of new provision. The new section 11 of article VIII
7of the constitution created in this joint resolution shall be designated by the next
8higher open whole section number in that article if, before the ratification by the
9people of the amendment proposed in this joint resolution, any other ratified
10amendment has created a section 11 of article VIII of the constitution of this state.
11If one or more joint resolutions create a section 11 of article VIII simultaneously with
12the ratification by the people of the amendment proposed in this joint resolution, the
13sections created shall be numbered and placed in a sequence so that the sections
14created by the joint resolution having the lowest enrolled joint resolution number
15have the numbers designated in that joint resolution and the sections created by the
16other joint resolutions have numbers that are in the same ascending order as are the
17numbers of the enrolled joint resolutions creating the sections.
AJR99,5,20
18Be it further resolved, That this proposed amendment be referred to the
19legislature to be chosen at the next general election and that it be published for 3
20months previous to the time of holding such election.
