H 3496 Joint Resolution, By Harrell, Wilkins, W.D. Smith, Bingham, Chellis, 
Clyburn, Cotty, Kirsh, McCraw, Merrill, Rice, Sheheen, Walker, Young, Harvin and 
Bailey
 A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE X OF THE
 CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE REQUIREMENT FOR THE
 STATE AND ITS POLITICAL SUBDIVISIONS TO HAVE BUDGET PROCESSES DESIGNED TO KEEP
 REVENUES AND EXPENDITURES IN BALANCE, THE LIMITATION ON STATE APPROPRIATIONS,
 AND THE LIMITATIONS ON STATE EMPLOYEES, SO AS TO DELETE THE EXISTING STATE
 SPENDING LIMITATION AND REQUIRE THE GENERAL ASSEMBLY TO REPLACE IT BY A LAW
 PROVIDING A LIMIT ON STATE SPENDING FOR A FISCAL YEAR THAT IS THE LESSER OF
 THE TOTAL OF THE STATE APPROPRIATIONS IN THE PRIOR YEAR PLUS SIX PERCENT OR
 THE TOTAL OF STATE APPROPRIATIONS IN THE PRIOR YEAR ADJUSTED FOR INFLATION AND
 POPULATION GROWTH AND PROVIDE THAT THE GENERAL ASSEMBLY IN ENACTING THE LIMIT
 SHALL DEFINE THE APPROPRIATIONS TO WHICH THE LIMIT APPLIES, AND EXCEPTIONS TO
 THE LIMIT, AND THE METHOD OF CALCULATING THE LIMIT AND PROPOSING AN AMENDMENT
 TO SECTION 36, ARTICLE III, RELATING TO THE GENERAL RESERVE FUND AND THE
 CAPITAL RESERVE FUND, SO AS TO PROVIDE THAT THE GENERAL ASSEMBLY BY LAW SHALL
 ESTABLISH A NEW "SPENDING LIMIT RESERVE FUND" TO WHICH MUST BE CREDITED ALL
 GENERAL FUND REVENUES IN A FISCAL YEAR IN EXCESS OF THE APPLICABLE
 CONSTITUTIONAL SPENDING LIMIT, TO PROVIDE THAT THE GENERAL ASSEMBLY IN THE
 IMPLEMENTING LAW SHALL DEFINE SURPLUS REVENUES, PROVIDE THE PURPOSES FOR WHICH
 THE REVENUES CREDITED TO THIS FUND MUST BE USED, AND THE TIMING AND METHOD OF
 THE GENERAL ASSEMBLY'S APPROPRIATION OF THESE REVENUES AND TO PROVIDE THAT THE
 IMPLEMENTING LAW MAY NOT BE AMENDED OR REPEALED EXCEPT BY A SPECIAL VOTE
 DEFINED AS A RECORDED ROLL-CALL VOTE OF AT LEAST TWO-THIRDS OF THE MEMBERS IN
 EACH BRANCH PRESENT AND VOTING, BUT NOT LESS THAN THREE-FIFTHS OF THE TOTAL
 MEMBERSHIP OF EACH BRANCH.

   02/04/03  House  Introduced and read first time HJ-7
   02/04/03  House  Referred to Committee on Ways and Means HJ-8
   02/04/03         Scrivener's error corrected
   02/06/03  House  Committee report: Favorable with amendment Ways
                     and Means HJ-3
   02/06/03  House  Member(s) request name added as sponsor: Harvin
   02/11/03  House  Member(s) request name added as sponsor: Bailey
   02/11/03  House  Member(s) request name removed as sponsor: Lucas
   02/12/03  House  Amended HJ-21
   02/12/03  House  Read second time HJ-24
   02/12/03  House  Roll call Yeas-103  Nays-0 HJ-24
   02/13/03  House  Read third time and sent to Senate HJ-12
   02/13/03  Senate Introduced and read first time SJ-8
   02/13/03  Senate Referred to Committee on Finance SJ-8

Indicates Matter Stricken

Indicates New Matter

AMENDED

February 12, 2003

H. 3496

Introduced by Reps. Harrell, Wilkins, W.D. Smith, Bingham, Chellis, Clyburn, Cotty, Kirsh, Lucas, McCraw, Merrill, Rice, Sheheen, Walker, Young and Harvin

S. Printed 2/12/03--H.

Read the first time February 4, 2003.

REVENUE IMPACT1/

This bill is not expected to have any impact on the Board of Economic Advisor's Revenue Estimate.

Explanation

This Joint Resolution will change the spending limit to the lesser of six percent or a percentage determined by population increase and increases in the Consumer Price Index (CPI). The resolution would not change the revenue estimates of the BEA but would impact spending if the revenue estimate exceeds the limit.

Approved By:

William C. Gillespie

Board of Economic Advisors

1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.

PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE REQUIREMENT FOR THE STATE AND ITS POLITICAL SUBDIVISIONS TO HAVE BUDGET PROCESSES DESIGNED TO KEEP REVENUES AND EXPENDITURES IN BALANCE, THE LIMITATION ON STATE APPROPRIATIONS, AND THE LIMITATIONS ON STATE EMPLOYEES, SO AS TO DELETE THE EXISTING STATE SPENDING LIMITATION AND REQUIRE THE GENERAL ASSEMBLY TO REPLACE IT BY A LAW PROVIDING A LIMIT ON STATE SPENDING FOR A FISCAL YEAR THAT IS THE LESSER OF THE TOTAL OF THE STATE APPROPRIATIONS IN THE PRIOR YEAR PLUS SIX PERCENT OR THE TOTAL OF STATE APPROPRIATIONS IN THE PRIOR YEAR ADJUSTED FOR INFLATION AND POPULATION GROWTH AND PROVIDE THAT THE GENERAL ASSEMBLY IN ENACTING THE LIMIT SHALL DEFINE THE APPROPRIATIONS TO WHICH THE LIMIT APPLIES, AND EXCEPTIONS TO THE LIMIT, AND THE METHOD OF CALCULATING THE LIMIT AND PROPOSING AN AMENDMENT TO SECTION 36, ARTICLE III, RELATING TO THE GENERAL RESERVE FUND AND THE CAPITAL RESERVE FUND, SO AS TO PROVIDE THAT THE GENERAL ASSEMBLY BY LAW SHALL ESTABLISH A NEW "SPENDING LIMIT RESERVE FUND" TO WHICH MUST BE CREDITED ALL GENERAL FUND REVENUES IN A FISCAL YEAR IN EXCESS OF THE APPLICABLE CONSTITUTIONAL SPENDING LIMIT, TO PROVIDE THAT THE GENERAL ASSEMBLY IN THE IMPLEMENTING LAW SHALL DEFINE SURPLUS REVENUES, PROVIDE THE PURPOSES FOR WHICH THE REVENUES CREDITED TO THIS FUND MUST BE USED, AND THE TIMING AND METHOD OF THE GENERAL ASSEMBLY'S APPROPRIATION OF THESE REVENUES AND TO PROVIDE THAT THE IMPLEMENTING LAW MAY NOT BE AMENDED OR REPEALED EXCEPT BY A SPECIAL VOTE DEFINED AS A RECORDED ROLL-CALL VOTE OF AT LEAST TWO-THIRDS OF THE MEMBERS IN EACH BRANCH PRESENT AND VOTING, BUT NOT LESS THAN THREE-FIFTHS OF THE TOTAL MEMBERSHIP OF EACH BRANCH.

Amend Title To Conform

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

SECTION    1.    It is proposed that the first two paragraphs of 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.

The General Assembly by law shall prescribe a spending limitation on appropriations and an enforcement mechanism therefor which provides that state appropriations for a fiscal year must not exceed the lesser of the total of the prior year's state appropriations plus six percent or the total of the prior year's state appropriations adjusted for inflation and population growth. The law implementing the limit must specify the appropriations to which the limit applies and the method of calculating the adjustments for inflation and population."

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 7, Article X of the Constitution of this State be amended relating to the requirement for the State and its political subdivisions to have budget processes designed to keep revenues and expenditures in balance and the limitation on state appropriations, so as to delete the existing state spending limitation and require the General Assembly to replace it by a law providing a limit on state spending for a fiscal year and an enforcement mechanism therefor that is the lesser of the total of state appropriations in the prior year plus six percent or the total of state appropriations in the prior year adjusted for inflation and population growth and provide that the General Assembly in enacting the limit shall define the appropriations to which the limit applies, and exceptions to the limit, and the method of calculating the limit?

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 36, Article X of the Constitution of this State be amended by adding at the end:

"(C)(1)    The General Assembly by law shall establish a 'Spending Limit Reserve Fund' (fund) to which must be credited all general fund revenues in a fiscal year in excess of the spending limit applicable to these revenues provided by this constitution. In the implementing law, the General Assembly shall define surplus revenues and provide the purposes for which the revenues credited to this fund must be used and the timing and method of the General Assembly's appropriations of these revenues.

(2)    Upon implementation of the provisions of this subsection by law, this law may not be amended or repealed except by the special vote provided in item (3) of this subsection.

(3)    The special vote referred to in item (2) of this subsection means an affirmative recorded roll-call 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 of each branch."

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 36, Article III of the Constitution of this State relating to the General Reserve Fund and Capital Reserve Fund be amended so as to provide that the General Assembly by law shall establish a new 'Spending Limit Reserve Fund' to which must be credited all general fund revenues in a fiscal year in excess of the applicable constitutional spending limit, to provide that the General Assembly in the implementing law shall define surplus revenues, provide the purposes for which the revenues credited to this fund must be used, and the timing and method of the General Assembly's appropriation of these revenues and to provide that the implementing law may not be amended or repealed except by a special vote defined as a recorded roll-call vote of at least two-thirds of the members in each branch present and voting, but not less than three-fifths of the total membership of each branch?

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'."