H*3823 Session 107 (1987-1988)
H*3823(Rat #0414, Act #0687 of 1988) Joint Resolution, By
House Ways and Means
A Joint Resolution proposing an amendment to Section 36 of Article III of the
Constitution of this State, 1895, relating to the General Fund Reserve, so as
to change the name of the General Fund Reserve to the General Reserve Fund,
reduce from four to three percent of the General Fund revenue of the latest
completed fiscal year the amount required in the Fund, delete provisions
requiring a special vote to adjust the percentage required in the Fund, delete
provisions requiring the General Assembly to review the law on this subject
every five years, provide a mechanism for restoring the Fund should monies
from the Fund be expended, require a Capital Reserve Fund equal to two percent
of the General Fund revenue of the latest completed fiscal year, and provide
that before March first the Capital Reserve Fund must be used to offset
mid-year budget reductions before mandating cuts in operating appropriations
and after March first monies from the Fund may be appropriated by a special
vote in separate legislation by the General Assembly to finance in cash
previously authorized Capital Improvement Bond projects, retire bond principal
or interest on bonds previously issued, and for capital improvements or other
nonrecurring purposes which must be ranked in order of priority of expenditure
and not be funded until thirty days after completion of the fiscal year and
provide that any appropriations of monies from the Capital Reserve Fund after
March first must be reduced based on the rank of priority beginning with the
lowest priority to the extent necessary and applied to the year-end deficits
before withdrawing monies from the General Reserve Fund and to provide that
monies in the Capital Reserve Fund not appropriated or any appropriation for a
particular project or item which has been reduced due to application of the
monies to year-end deficit must lapse and be credited to the General
Fund.-amended title
02/23/88 House Introduced, read first time, placed on calendar
without reference HJ-1346
02/25/88 House Amended HJ-1528
02/25/88 House Read second time HJ-1533
02/25/88 House Unanimous consent for third reading on next
legislative day HJ-1533
02/26/88 House Read third time and sent to Senate HJ-1536
03/01/88 Senate Introduced and read first time SJ-19
03/01/88 Senate Referred to Committee on Finance SJ-19
03/03/88 Senate Committee report: Favorable with amendment
Finance SJ-47
03/03/88 Senate Amended SJ-47
03/03/88 Senate Read second time SJ-52
03/03/88 Senate Ordered to third reading with notice of
amendments SJ-52
03/08/88 Senate Amended SJ-77
03/08/88 Senate Read third time SJ-82
03/08/88 Senate Returned SJ-82
03/09/88 House Senate amendment amended HJ-1822
03/09/88 House Returned HJ-1822
03/09/88 Senate Concurred in House amendment and enrolled SJ-4
03/09/88 Ratified R 414
03/09/88 No signature required
03/09/88 Act No. 687
03/22/88 Copies available
(A687, R414, H3823)
A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 36 OF ARTICLE III OF THE
CONSTITUTION OF THIS STATE, 1895, RELATING TO THE GENERAL FUND RESERVE, SO AS TO
CHANGE THE NAME OF THE GENERAL FUND RESERVE TO THE GENERAL RESERVE FUND, REDUCE
FROM FOUR TO THREE PERCENT OF THE GENERAL FUND REVENUE OF THE LATEST COMPLETED
FISCAL YEAR THE AMOUNT REQUIRED IN THE FUND, DELETE PROVISIONS REQUIRING A
SPECIAL VOTE TO ADJUST THE PERCENTAGE REQUIRED IN THE FUND, DELETE PROVISIONS
REQUIRING THE GENERAL ASSEMBLY TO REVIEW THE LAW ON THIS SUBJECT EVERY FIVE
YEARS, PROVIDE A MECHANISM FOR RESTORING THE FUND SHOULD MONIES FROM THE FUND BE
EXPENDED, REQUIRE A CAPITAL RESERVE FUND EQUAL TO TWO PERCENT OF THE GENERAL FUND
REVENUE OF THE LATEST COMPLETED FISCAL YEAR, AND PROVIDE THAT BEFORE MARCH FIRST
THE CAPITAL RESERVE FUND MUST BE USED TO OFFSET MID-YEAR BUDGET REDUCTIONS
BEFORE MANDATING CUTS IN OPERATING APPROPRIATIONS AND AFTER MARCH FIRST MONIES
FROM THE FUND MAY BE APPROPRIATED BY A SPECIAL VOTE IN SEPARATE LEGISLATION BY
THE GENERAL ASSEMBLY TO FINANCE IN CASH PREVIOUSLY AUTHORIZED CAPITAL IMPROVEMENT
BOND PROJECTS, RETIRE BOND PRINCIPAL OR INTEREST ON BONDS PREVIOUSLY ISSUED, AND
FOR CAPITAL IMPROVEMENTS OR OTHER NONRECURRING PURPOSES WHICH MUST BE RANKED IN
ORDER OF PRIORITY OF EXPENDITURE AND NOT BE FUNDED UNTIL THIRTY DAYS AFTER
COMPLETION OF THE FISCAL YEAR AND PROVIDE THAT ANY APPROPRIATIONS OF MONIES FROM
THE CAPITAL RESERVE FUND AFTER MARCH FIRST MUST BE REDUCED BASED ON THE RANK OF
PRIORITY BEGINNING WITH THE LOWEST PRIORITY TO THE EXTENT NECESSARY AND APPLIED
TO THE YEAR-END DEFICITS BEFORE WITHDRAWING MONIES FROM THE GENERAL RESERVE FUND
AND TO PROVIDE THAT MONIES IN THE CAPITAL RESERVE FUND NOT APPROPRIATED OR ANY
APPROPRIATION FOR A PARTICULAR PROJECT OR ITEM WHICH HAS BEEN REDUCED DUE TO
APPLICATION OF THE MONIES TO YEAR-END DEFICIT MUST LAPSE AND BE CREDITED TO THE
GENERAL FUND.
Be it enacted by the General Assembly of the State of South Carolina:
Constitutional amendment proposed
SECTION 1. There is proposed that Section 36 of Article III of the Constitution
of this State be amended to read:
"Section 36. (A) The General Assembly shall provide for a General
Reserve Fund of three percent of the general fund revenue of the latest completed
fiscal year. Funds may be withdrawn from the reserve only for the purpose of
covering operating deficits of state government. The General Assembly must
provide for the orderly restoration of funds withdrawn from the reserve from
future revenues and out of funds accumulating in excess of annual operating
expenditures.
(1) The General Assembly shall provide by law for a procedure to survey the
progress of the collection of revenue and the expenditure of funds and to
authorize and direct reduction of appropriations as may be necessary to prevent
a deficit.
(2) In the event of a year-end operating deficit, so much of the reserve
fund as may be necessary must be used to cover the deficit, and the amount must
be restored to the reserve fund within three fiscal years out of future revenues
until the three percent General Reserve Fund is again reached and maintained.
Provided that a minimum of one percent of the general fund revenue of the latest
completed fiscal year, if so much is necessary, must be restored to the reserve
fund each year following the deficit until the three percent General Reserve Fund
is restored.
(B) The General Assembly, in the annual general appropriations act, shall
appropriate, out of the estimated revenue of the general fund for the fiscal year
for which the appropriations are made, into a Capital Reserve Fund, which is
separate and distinct from the General Reserve Fund, an amount equal to two
percent of the general fund revenue of the latest completed fiscal year.
(1) The General Assembly must provide by law that if before March first the
revenue forecast for the current fiscal year projects that revenues at the end
of the fiscal year will be less than expenditures authorized by appropriation for
that year, then the current year's appropriation to the Capital Reserve Fund
first must be reduced to the extent necessary before mandating any reductions in
operating appropriations.
(2) After March first of a fiscal year, monies from the Capital Reserve Fund
may be appropriated by the General Assembly in separate legislation upon 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 for the following purposes:
(a) to finance in cash previously authorized capital improvement bond
projects;
(b) to retire interest or principal on bonds previously issued;
(c) for capital improvements or other nonrecurring purposes.
(3)(a) Any appropriation of monies from the Capital Reserve Fund as provided
in this subsection must be ranked in priority of expenditure and is effective
thirty days after completion of the fiscal year. If it is determined that the
fiscal year has ended with an operating deficit, then the monies appropriated
from the Capital Reserve Fund must be reduced based on the rank of priority
beginning with the lowest priority to the extent necessary and applied to the
year-end operating deficit before withdrawing monies from the General Reserve
Fund.
(b) At the end of the fiscal year, any monies in the Capital Reserve Fund
that are not appropriated as provided in this subsection or any appropriation for
a particular project or item which has been reduced due to application of the
monies to a year-end deficit must lapse and be credited to the General
Fund."
Proposed amendment to be submitted to qualified electors
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
ballots:
"Must Section 36 of Article III of the Constitution of this State be
amended to change the name of the General Fund Reserve to the General Reserve
Fund, reduce from four to three percent of the general fund revenue of the latest
completed fiscal year the amount required in the fund, delete provisions
requiring a special vote to adjust the percentage required in the fund, delete
provisions requiring the General Assembly to review the law on this subject every
five years, provide a mechanism for restoring the fund should monies from the
fund be expended, require a Capital Reserve Fund equal to two percent of the
general fund revenue of the latest completed fiscal year, and provide that before
March first the fund must be used to offset mid-year budget reductions before
mandating cuts in operating appropriations and after March first monies from the
fund may be appropriated by a special vote in separate legislation by the General
Assembly to finance in cash previously authorized capital improvement bond
projects, retire bond principal or interest on bonds previously issued, and for
capital improvements or other nonrecurring purposes which must be ranked in order
of priority of expenditure and not be funded until thirty days after completion
of the fiscal year and provide that any appropriations of monies from the Capital
Reserve Fund after March first must be reduced based on the rank of priority
beginning with the lowest priority to the extent necessary and applied to the
year-end deficits before withdrawing monies from the General Reserve Fund and to
provide that monies in the Capital Reserve Fund not appropriated or any
appropriation for a particular project or item which has been reduced due to
application of the monies to year-end deficit must lapse and be credited to the
General Fund?
Yes / /
No / /
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 votingagainst the
question shall deposit a ballot with a check or cross mark in the square after
the word 'No'."
Ratified the 9th day of March, 1988. |