S 1090 Joint Resolution, By Bryant, Grooms, Verdin, Cleary, Peeler, Ryberg, 
Fair, Hawkins, Campsen, Cromer, Gregory and Scott
 A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 36, ARTICLE III OF THE
 CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE GENERAL RESERVE FUND AND
 THE CAPITAL RESERVE FUND, SO AS TO REQUIRE THE GENERAL ASSEMBLY TO ESTABLISH A
 TAXPAYER RELIEF FUND (RELIEF FUND) TO WHICH MUST BE APPROPRIATED ALL ESTIMATED
 STATE GENERAL FUND SURPLUS REVENUE FOR A FISCAL YEAR IN EXCESS OF THE STATE
 CONSTITUTIONAL SPENDING LIMIT AND SUCH OTHER REVENUES AS THE GENERAL ASSEMBLY
 MAY PROVIDE BY LAW, TO PROVIDE THAT REVENUES CREDITED TO THE RELIEF FUND MAY
 BE WITHDRAWN ONLY FOR THE PURPOSE OF RESTORING THE GENERAL RESERVE FUND OR
 COVERING OPERATING DEFICITS OF STATE GOVERNMENT, AND TO PROVIDE THAT AFTER
 MARCH FIRST OF EACH FISCAL YEAR, THE GENERAL ASSEMBLY ANNUALLY BY LAW SHALL
 REFUND TO THE TAXPAYERS OF THIS STATE ALL RELIEF FUND REVENUES NOT NEEDED FOR
 GENERAL RESERVE FUND RESTORATION OR DEFICIT REDUCTION; PROPOSING AN AMENDMENT
 TO SECTION 7, ARTICLE X, RELATING TO THE SPENDING LIMIT AND BUDGET PROCESS FOR
 THE STATE AND POLITICAL SUBDIVISIONS AND SCHOOL DISTRICTS OF THE STATE AND THE
 LIMIT ON STATE EMPLOYEES, SO AS TO LIMIT SPENDING BY A POLITICAL SUBDIVISION
 OF THE STATE TO ITS PRIOR YEAR SPENDING ADJUSTED FOR INFLATION AND POPULATION
 GROWTH WITH A REFUND TO TAXPAYERS OF SURPLUS REVENUE GENERATED IN THE MANNER
 AS THE GENERAL ASSEMBLY PROVIDES BY LAW, TO PROVIDE THAT IN THE CASE OF A
 POLITICAL SUBDIVISION EXCEEDING THE LIMIT, THE COMPTROLLER GENERAL SHALL FILE
 A CERTIFICATE OF VIOLATION WITH THE STATE TREASURER SPECIFYING THE AMOUNT OF
 THE VIOLATION WHICH THE STATE TREASURER THEN SHALL WITHHOLD FROM STATE FUNDS
 OTHERWISE DUE THE POLITICAL SUBDIVISION WITH THE AMOUNT WITHHELD REFUNDED TO
 TAXPAYERS IN THE MANNER THAT THE GENERAL ASSEMBLY SHALL PROVIDE BY LAW, TO
 REQUIRE A POLITICAL SUBDIVISION TO FURNISH THE COMPTROLLER GENERAL THE
 INFORMATION AND RECORDS REQUESTED BY THE COMPTROLLER GENERAL WITH RESPECT TO
 THE REVENUES AND EXPENDITURES OF THE POLITICAL SUBDIVISION, AND TO REQUIRE
 THAT THE QUESTION OF SUSPENDING THIS SPENDING LIMIT FOR NOT MORE THAN TWO
 YEARS BE PLACED ON THE BALLOT AT THE TIME OF EACH GENERAL ELECTION FOR
 REPRESENTATIVES AS THE GENERAL ASSEMBLY PROVIDES BY LAW WITH THE SPENDING
 LIMIT APPLICABLE FOR THE POLITICAL SUBDIVISION SUSPENDED IF A MAJORITY VOTING
 IN THE REFERENDUM FAVORS THE SUSPENSION; AND TO PROVIDE THAT ANNUAL STATE
 GENERAL FUNDS APPROPRIATIONS MUST NOT EXCEED THE TOTAL OF SUCH APPROPRIATIONS
 IN THE PRIOR YEAR ADJUSTED FOR INFLATION AND POPULATION GROWTH, TO PROVIDE
 THOSE APPROPRIATIONS AND REVENUES NOT SUBJECT TO THIS LIMIT, TO PROVIDE THAT
 THE GENERAL ASSEMBLY BY LAW SHALL ESTABLISH THE METHOD OF CALCULATING THE
 ADJUSTMENTS FOR INFLATION AND POPULATION GROWTH, TO REQUIRE THE COMPTROLLER
 GENERAL TO NOTIFY THE GOVERNOR, SPEAKER OF THE HOUSE OF REPRESENTATIVES, AND
 PRESIDENT PRO TEMPORE OF THE SENATE IF THE SPENDING LIMIT IS EXCEEDED AND
 PROVIDE THAT THE GENERAL ASSEMBLY SHALL THEN TAKE CORRECTIVE ACTION AT ITS
 NEXT REGULAR SESSION OR IN EXTRA SESSION, AND TO REQUIRE THAT THE QUESTION OF
 SUSPENDING THIS SPENDING LIMIT FOR NOT MORE THAN TWO YEARS BE PLACED ON THE
 BALLOT AT THE TIME OF EACH GENERAL ELECTION FOR REPRESENTATIVES AS THE GENERAL
 ASSEMBLY PROVIDES BY LAW WITH THE SPENDING LIMIT SUSPENDED IF A MAJORITY
 VOTING IN THE REFERENDUM FAVORS THE SUSPENSION.

   01/26/06  Senate Introduced and read first time SJ-12
   01/26/06  Senate Referred to Committee on Judiciary SJ-12
   02/02/06  Senate Referred to Subcommittee: McConnell (ch), Martin,
                     Ritchie, Sheheen, Campsen, Williams

PROPOSING AN AMENDMENT TO SECTION 36, ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE GENERAL RESERVE FUND AND THE CAPITAL RESERVE FUND, SO AS TO REQUIRE THE GENERAL ASSEMBLY TO ESTABLISH A TAXPAYER RELIEF FUND (RELIEF FUND) TO WHICH MUST BE APPROPRIATED ALL ESTIMATED STATE GENERAL FUND SURPLUS REVENUE FOR A FISCAL YEAR IN EXCESS OF THE STATE CONSTITUTIONAL SPENDING LIMIT AND SUCH OTHER REVENUES AS THE GENERAL ASSEMBLY MAY PROVIDE BY LAW, TO PROVIDE THAT REVENUES CREDITED TO THE RELIEF FUND MAY BE WITHDRAWN ONLY FOR THE PURPOSE OF RESTORING THE GENERAL RESERVE FUND OR COVERING OPERATING DEFICITS OF STATE GOVERNMENT, AND TO PROVIDE THAT AFTER MARCH FIRST OF EACH FISCAL YEAR, THE GENERAL ASSEMBLY ANNUALLY BY LAW SHALL REFUND TO THE TAXPAYERS OF THIS STATE ALL RELIEF FUND REVENUES NOT NEEDED FOR GENERAL RESERVE FUND RESTORATION OR DEFICIT REDUCTION; PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE X, RELATING TO THE SPENDING LIMIT AND BUDGET PROCESS FOR THE STATE AND POLITICAL SUBDIVISIONS AND SCHOOL DISTRICTS OF THE STATE AND THE LIMIT ON STATE EMPLOYEES, SO AS TO LIMIT SPENDING BY A POLITICAL SUBDIVISION OF THE STATE TO ITS PRIOR YEAR SPENDING ADJUSTED FOR INFLATION AND POPULATION GROWTH WITH A REFUND TO TAXPAYERS OF SURPLUS REVENUE GENERATED IN THE MANNER AS THE GENERAL ASSEMBLY PROVIDES BY LAW, TO PROVIDE THAT IN THE CASE OF A POLITICAL SUBDIVISION EXCEEDING THE LIMIT, THE COMPTROLLER GENERAL SHALL FILE A CERTIFICATE OF VIOLATION WITH THE STATE TREASURER SPECIFYING THE AMOUNT OF THE VIOLATION WHICH THE STATE TREASURER THEN SHALL WITHHOLD FROM STATE FUNDS OTHERWISE DUE THE POLITICAL SUBDIVISION WITH THE AMOUNT WITHHELD REFUNDED TO TAXPAYERS IN THE MANNER THAT THE GENERAL ASSEMBLY SHALL PROVIDE BY LAW, TO REQUIRE A POLITICAL SUBDIVISION TO FURNISH THE COMPTROLLER GENERAL THE INFORMATION AND RECORDS REQUESTED BY THE COMPTROLLER GENERAL WITH RESPECT TO THE REVENUES AND EXPENDITURES OF THE POLITICAL SUBDIVISION, AND TO REQUIRE THAT THE QUESTION OF SUSPENDING THIS SPENDING LIMIT FOR NOT MORE THAN TWO YEARS BE PLACED ON THE BALLOT AT THE TIME OF EACH GENERAL ELECTION FOR REPRESENTATIVES AS THE GENERAL ASSEMBLY PROVIDES BY LAW WITH THE SPENDING LIMIT APPLICABLE FOR THE POLITICAL SUBDIVISION SUSPENDED IF A MAJORITY VOTING IN THE REFERENDUM FAVORS THE SUSPENSION; AND TO PROVIDE THAT ANNUAL STATE GENERAL FUNDS APPROPRIATIONS MUST NOT EXCEED THE TOTAL OF SUCH APPROPRIATIONS IN THE PRIOR YEAR ADJUSTED FOR INFLATION AND POPULATION GROWTH, TO PROVIDE THOSE APPROPRIATIONS AND REVENUES NOT SUBJECT TO THIS LIMIT, TO PROVIDE THAT THE GENERAL ASSEMBLY BY LAW SHALL ESTABLISH THE METHOD OF CALCULATING THE ADJUSTMENTS FOR INFLATION AND POPULATION GROWTH, TO REQUIRE THE COMPTROLLER GENERAL TO NOTIFY THE GOVERNOR, SPEAKER OF THE HOUSE OF REPRESENTATIVES, AND PRESIDENT PRO TEMPORE OF THE SENATE IF THE SPENDING LIMIT IS EXCEEDED AND PROVIDE THAT THE GENERAL ASSEMBLY SHALL THEN TAKE CORRECTIVE ACTION AT ITS NEXT REGULAR SESSION OR IN EXTRA SESSION, AND TO REQUIRE THAT THE QUESTION OF SUSPENDING THIS SPENDING LIMIT FOR NOT MORE THAN TWO YEARS BE PLACED ON THE BALLOT AT THE TIME OF EACH GENERAL ELECTION FOR REPRESENTATIVES AS THE GENERAL ASSEMBLY PROVIDES BY LAW WITH THE SPENDING LIMIT SUSPENDED IF A MAJORITY VOTING IN THE REFERENDUM FAVORS THE SUSPENSION.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1. It is proposed that Section 36, Article III of the Constitution of this State be amended by adding a new subsection at the end to read:

"(C)    The General Assembly by law shall provide for a Taxpayer Relief Fund (Relief Fund), separate and distinct from the General Reserve Fund and the Capital Reserve Fund, into which must be appropriated each fiscal year all estimated general fund revenues for that fiscal year in excess of the spending limit provided pursuant to Section 7(c) of Article X and such other revenues as the General Assembly may provide by law. Revenues may be withdrawn from the Relief Fund only for the purpose of restoring the General Reserve Fund or covering operating deficits of state government but after March first of each fiscal year, the General Assembly by law shall refund to the taxpayers of this state all Relief Fund revenues except those revenues needed for restoration of the General Reserve Fund or deficit reduction."

SECTION    2.    The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

"Must Section 36, Article III of the Constitution of this State, relating to the General Reserve Fund and the Capital Reserve Fund, be amended so as to require the General Assembly to establish a Taxpayer Relief Fund (Relief Fund) to which must be appropriated all estimated State general fund surplus revenue for a fiscal year in excess of the State constitutional spending limit and such other revenues as the General Assembly may provide by law, to provide that revenues credited to the Relief Fund may be withdrawn only for the purpose of restoring the General Reserve Fund or covering operating deficits of state government and to provide that after March first of each fiscal year, the General Assembly annually by law shall refund to the taxpayers of this State all Relief Fund revenues not needed for General Reserve Fund restoration or deficit reduction?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

SECTION    3.    It is proposed that Section 7(b), Article X of the Constitution of this State be amended by adding a new paragraph at the end to read:

"Except to offset a prior year deficit as provided in the first paragraph of this subsection, each political subdivision of the State shall limit its yearly expenditures to an amount that does not exceed the political subdivision's expenditures for the prior fiscal year adjusted for inflation and population growth. The General Assembly shall provide by law a method of calculating the adjustments for inflation and population and a process requiring each political subdivision to refund to the taxpayers of the political subdivision any surplus revenue attributable to this limit. If the Comptroller General determines that a political subdivision has violated this spending limit, the Comptroller General shall file a certificate of violation with the State Treasurer specifying the amount of the violation. Upon receipt of the certificate of violation, the State Treasurer shall withhold the certified amount from the distribution of any State funds otherwise due the political subdivision. Each political subdivision shall provide the Comptroller General with any information or records requested by the Comptroller General related to the political subdivision's revenues and expenditures.

The question of whether or not this spending limit may be suspended temporarily must be submitted to the qualified electors of each political subdivision at each general election for representatives. The General Assembly by law shall provide a process for placing this question on the general election ballot. If a majority of the qualified electors of the political subdivision votes in favor of suspending the spending limitation, the governing body of the political subdivision may exceed the spending limit. Each suspension lasts a maximum of two years."

SECTION    4.    The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

"Must Section 7, Article X of the Constitution of this State, relating to the spending limit and budget process for the State and political subdivisions and school districts of the State and the limit on State employees, be amended so as to limit spending by a political subdivision of the State to its prior year spending adjusted for inflation and population growth with a refund to taxpayers of surplus revenue generated in the manner, all determined as the General Assembly provides by law, to provide that in the case of a political subdivision exceeding the limit, the Comptroller General shall file a certificate of violation with the State Treasurer specifying the amount of the violation which the State Treasurer then shall withhold from state funds otherwise due the political subdivision and the amount withheld refunded to taxpayers in the manner that the General Assembly provides by law, to require a political subdivision to furnish the Comptroller General the information and records requested by the Comptroller General with respect to the revenues and expenditures of the political subdivision, and to require that the question of suspending this spending limit for not more than two years be placed on the ballot at the time of each general election for representatives as the General Assembly provides by law and the spending limit applicable for the political subdivision suspended if a majority voting in the referendum favors the suspension?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

SECTION    5.    It is proposed that Section 7(c), Article X of the Constitution of this State be amended to read:

"(c)    The General Assembly shall prescribe by law a spending limitation on appropriations for the operation of state government which shall provide that annual increases in such appropriations may not exceed the average growth rate of the economy of the State as measured by a process provided for by the law which prescribes the limitations on appropriations; provided, however, the limitation may be suspended for any one fiscal year by a special vote as provided in this subsection.

During the regular session of the General Assembly in 1990 and during every fifth annual regular session thereafter, the General Assembly shall conduct and complete a review of the law implementing this subsection. During such session, only a vote of two-thirds of the members of each branch present and voting shall be required to change the existing limitation on appropriation. Unless that is done, the existing limitations shall remain unchanged.

Upon implementation of the provisions of this subsection by law, such law may not be amended or repealed except by the special vote as provided in this subsection.

The special vote referred to in this subsection means an affirmative vote in each branch of the General Assembly by two-thirds of the members present and voting, but not less than three-fifths of the total membership in each branch. State general fund appropriations for each fiscal year must not exceed the prior year's general fund appropriations adjusted for inflation and population growth. All general fund appropriations by the General Assembly must comply with this spending limitation except appropriations of federal funds, appropriations from the Capital Reserve Fund, Education Lottery Account and State Highway Fund or any successor fund used for similar purposes, and appropriations earmarked for tax relief trust funds or to replenish any trust or reserve account. The General Assembly by law shall establish the method of calculating the adjustments for inflation and population. The Comptroller General shall notify in writing the Governor, the Speaker of the House, and the President Pro Tempore of the Senate if this spending limit is exceeded. The General Assembly then shall take corrective action immediately upon meeting in its next regular session or in an extra session called by the Governor, which corrective action is an extraordinary occasion.

The question of whether or not this spending limit may be suspended temporarily must be submitted to the qualified electors of the State at each general election for representatives. The General Assembly by law shall provide a process for placing this question on the general election ballot. If a majority of the qualified electors of the State vote in favor of suspending the spending limit, the General Assembly may exceed the limit. Each suspension lasts a maximum of two years."

SECTION    6.    The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

"Must Section 7, Article X of the Constitution of this State, relating to the spending limit and budget process for the State and political subdivisions and school districts of the State and the limit on State employees, be amended so as to provide that annual State general funds appropriations must not exceed the total of such appropriations in the prior year adjusted for inflation and population growth, to provide those appropriations and revenues not subject to this limit, to provide that the General Assembly by law shall establish the method of calculating the adjustments for inflation and population growth, to require the Comptroller General to notify the Governor, Speaker of the House of Representatives, and President Pro Tempore of the Senate if the spending limit is exceeded and provide that the General Assembly shall then take corrective action at its next regular session or in extra session, and to require that the question of suspending this spending limitation for not more than two years must be placed on the ballot at the time of each general election for representatives as the General Assembly provides by law and the spending limit suspended if a majority voting in the referendum favor the suspension?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."