H*2067 Session 106 (1985-1986)
H*2067(Rat #0014, Act #0010 of 1985) General Bill, By House Ways and Means
A Bill ratifying amendments to Section 7 of Article X of the Constitution of
South Carolina, 1895, relating to the levy of taxes to meet expenses and
deficits of state government, so as to rephrase a portion of the Section to
provide that the General Assembly shall provide by law that the annual State
Budget must be balanced, and to provide that the General Assembly shall
prescribe by law that annual increases in State appropriations may not exceed
the average growth rate of the economy of the State nor may the annual
increase in the number of state employees exceed the average growth of the
population of the State and to provide a procedure by which limitations may be
suspended, amended, or repealed; to provide that during the regular session of
the General Assembly in the year 1990 and during every fifth annual regular
session thereafter, the General Assembly shall conduct and complete a review
of the law implementing the provisions of Subsection (c) of this Section, and
to provide that during such session the General Assembly may change the
existing limitation on appropriations; ratifying an amendment to Section 13 of
Article X of the Constitution of South Carolina, 1895, relating to general
obligation debt, so as to provide that the debt service on general obligation
bonds as defined in the Section may not exceed five rather than seven percent
of the general revenue of the State for the previous fiscal year, to provide
that the percentage rate of general revenues may be reduced to four or
increased to seven percent by the General Assembly; to provide that during the
regular session of the General Assembly in the year 1990 and during every
fifth annual regular session thereafter, the General Assembly shall conduct
and complete a review of the law implementing the provisions of Item (c) of
Subsection (6) of this Section, and to provide that during such session the
General Assembly may change the existing percentage rate; ratifying an
amendment to Section 36 of Article III of the Constitution of South Carolina,
1895, relating to the State General Fund Reserve, so as to reduce such Reserve
from five to four percent of the General Fund Revenue of the latest completed
fiscal year and provide for the withdrawal of funds from the Reserve to cover
operating deficits of State Government, to require the General Assembly to
provide for the orderly restoration of the Reserve from future revenues, to
provide that the percentage rate of General Fund Revenue may be reduced to
three or increased to five percent by the General Assembly, to provide that
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 the Section, to provide that the
existing percentage rate shall remain unchanged unless during the session,
that review results in an amendment to or repeal of the law implementing the
Section, and provide that one percent of the General Fund Revenue of the
latest completed fiscal year must be restored to the Reserve Fund when used to
cover a year-end operating deficit during the first two fiscal years following
the deficit instead of in the first fiscal year following the deficit and
require that two percent of the General Fund Revenue must be restored to the
Reserve Fund the third fiscal year following the deficit instead of in each of
the next two succeeding fiscal years following the deficit, delete the
provisions authorizing the General Assembly by a two-thirds approval of the
membership of each House to use the Reserve Fund for purposes other than for a
deficit or priority purposes.
01/08/85 House Introduced, read first time, placed on calendar
without reference HJ-161
01/09/85 House Read second time HJ-191
01/10/85 House Read third time and sent to Senate HJ-254
01/15/85 Senate Introduced and read first time SJ-124
01/15/85 Senate Referred to Committee on Finance SJ-126
01/23/85 Senate Committee report: Favorable Finance SJ-220
01/24/85 Senate Read second time SJ-238
01/29/85 Senate Read third time and enrolled SJ-262
02/26/85 Ratified R 14
02/26/85 No signature required
02/26/85 Act No. 10
03/19/85 Copies available
(A10, R14, H2067)
AN ACT RATIFYING AMENDMENTS TO SECTION 7 OF ARTICLE X OF THE CONSTITUTION OF
SOUTH CAROLINA, 1895, RELATING TO THE LEVY OF TAXES TO MEET EXPENSES AND DEFICITS
OF STATE GOVERNMENT, SO AS TO REPHRASE A PORTION OF THE SECTION TO PROVIDE THAT
THE GENERAL ASSEMBLY SHALL PROVIDE BY LAW THAT THE ANNUAL STATE BUDGET MUST BE
BALANCED, AND TO PROVIDE THAT THE GENERAL ASSEMBLY SHALL PRESCRIBE BY LAW THAT
ANNUAL INCREASES IN STATE APPROPRIATIONS MAY NOT EXCEED THE AVERAGE GROWTH RATE
OF THE ECONOMY OF THE STATE NOR MAY THE ANNUAL INCREASE IN THE NUMBER OF STATE
EMPLOYEES EXCEED THE AVERAGE GROWTH OF THE POPULATION OF THE STATE AND TO PROVIDE
A PROCEDURE BY WHICH LIMITATIONS MAY BE SUSPENDED, AMENDED, OR REPEALED; TO
PROVIDE THAT DURING THE REGULAR SESSION OF THE GENERAL ASSEMBLY IN THE YEAR 1990
AND DURING EVERY FIFTH ANNUAL REGULAR SESSION THEREAFTER, THE GENERAL ASSEMBLY
SHALL CONDUCT AND COMPLETE A REVIEW OF THE LAW IMPLEMENTING THE PROVISIONS OF
SUBSECTION (c) OF THIS SECTION, AND TO PROVIDE THAT DURING SUCH SESSION THE
GENERAL ASSEMBLY MAY CHANGE THE EXISTING LIMITATION ON APPROPRIATIONS; RATIFYING
AN AMENDMENT TO SECTION 13 OF ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA,
1895, RELATING TO GENERAL OBLIGATION DEBT, SO AS TO PROVIDE THAT THE DEBT SERVICE
ON GENERAL OBLIGATION BONDS AS DEFINED IN THE SECTION MAY NOT EXCEED FIVE RATHER
THAN SEVEN PERCENT OF THE GENERAL REVENUE OF THE STATE FOR THE PREVIOUS FISCAL
YEAR, TO PROVIDE THAT THE PERCENTAGE RATE OF GENERAL REVENUES MAY BE REDUCED TO
FOUR OR INCREASED TO SEVEN PERCENT BY THE GENERAL ASSEMBLY; TO PROVIDE THAT
DURING THE REGULAR SESSION OF THE GENERAL ASSEMBLY IN THE YEAR 1990 AND DURING
EVERY FIFTH ANNUAL REGULAR SESSION THEREAFTER, THE GENERAL ASSEMBLY SHALL CONDUCT
AND COMPLETE A REVIEW OF THE LAW IMPLEMENTING THE PROVISIONS OF ITEM (c) OF
SUBSECTION (6) OF THIS SECTION, AND TO PROVIDE THAT DURING SUCH SESSION THE
GENERAL ASSEMBLY MAY CHANGE THE EXISTING PERCENTAGE RATE; RATIFYING AN AMENDMENT
TO SECTION 36 OF ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895,
RELATING TO THE STATE GENERAL FUND RESERVE, SO AS TO REDUCE SUCH RESERVE FROM
FIVE TO FOUR PERCENT OF THE GENERAL FUND REVENUE OF THE LATEST COMPLETED FISCAL
YEAR AND PROVIDE FOR THE WITHDRAWAL OF FUNDS FROM THE RESERVE TO COVER OPERATING
DEFICITS OF STATE GOVERNMENT, TO REQUIRE THE GENERAL ASSEMBLY TO PROVIDE FOR THE
ORDERLY RESTORATION OF THE RESERVE FROM FUTURE REVENUES, TO PROVIDE THAT THE
PERCENTAGE RATE OF GENERAL FUND REVENUE MAY BE REDUCED TO THREE OR INCREASED TO
FIVE PERCENT BY THE GENERAL ASSEMBLY, TO PROVIDE THAT 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 THE SECTION, TO PROVIDE THAT THE EXISTING PERCENTAGE RATE SHALL
REMAIN UNCHANGED UNLESS DURING THE SESSION, THAT REVIEW RESULTS IN AN AMENDMENT
TO OR REPEAL OF THE LAW IMPLEMENTING THE SECTION, AND PROVIDE THAT ONE PERCENT
OF THE GENERAL FUND REVENUE OF THE LATEST COMPLETED FISCAL YEAR MUST BE RESTORED
TO THE RESERVE FUND WHEN USED TO COVER A YEAR-END OPERATING DEFICIT DURING THE
FIRST TWO FISCAL YEARS FOLLOWING THE DEFICIT INSTEAD OF IN THE FIRST FISCAL YEAR
FOLLOWING THE DEFICIT AND REQUIRE THAT TWO PERCENT OF THE GENERAL FUND REVENUE
MUST BE RESTORED TO THE RESERVE FUND THE THIRD FISCAL YEAR FOLLOWING THE DEFICIT
INSTEAD OF IN EACH OF THE NEXT TWO SUCCEEDING FISCAL YEARS FOLLOWING THE DEFICIT,
DELETE THE PROVISIONS AUTHORIZING THE GENERAL ASSEMBLY BY A TWO-THIRDS APPROVAL
OF THE MEMBERSHIP OF EACH HOUSE TO USE THE RESERVE FUND FOR PURPOSES OTHER THAN
FOR A DEFICIT OR PRIORITY PURPOSES.
Be it enacted by the General Assembly of the State of South Carolina:
Constitutional amendment ratified
SECTION 1. The amendment to Section 7 of Article VI of the Constitution of South
Carolina, 1895, proposed under the terms of Joint Resolution 520 of 1984, having
been submitted to the qualified electors at the general election of 1984 as
prescribed in Section 1 of Article XVI of the Constitution of South Carolina,
1895, and a favorable vote having been received thereon, is ratified and declared
to be a part of the Constitution, so that subsection (a) of Section 7 of Article
X is amended to read:
"(a) The General Assembly shall provide by law for a budget process to
insure that annual expenditures of state government may not exceed annual state
revenue."
SECTION 2. The amendment to Section 7 of Article X of the Constitution of South
Carolina, 1895, proposed under the terms of Joint Resolution 520 of 1984, having
been submitted to the qualified electors at the general election of 1984 as
prescribed in Section 1 of Article XVI of the Constitution of South Carolina,
1895, and a favorable vote having been received thereon, is ratified and declared
to be a part of the Constitution, so that subsection (c) is added to Section 7
of Article X 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."
SECTION 3. The amendment to Section 7 of Article X of the Constitution of South
Carolina, 1895, proposed under the terms of Joint Resolution 520 of 1984, having
been submitted to the qualified electors at the general election of 1984 as
prescribed in Section 1 of Article XVI of the Constitution of South Carolina,
1895, and a favorable vote having been received thereon, is ratified and declared
to be a part of the Constitution, so that subsection (d) is added to Section 7
of Article X to read:
"(d) The General Assembly shall prescribe by law a limitation on the
number of state employees which shall provide that the annual increase in such
number may not exceed the average growth rate in the population of the State
measured by a process provided for in the law which prescribes that employment
limitation; provided, however, the limitation may be suspended for any one fiscal
year by a special vote as provided in this subsection.
Upon implementation of the provisions of this subsection by law, such law may
not be amended or repealed except by the special vote 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."
SECTION 4. The amendment to item (c) of subsection (6) of Section 13 of Article
X of the Constitution of South Carolina, 1895, proposed under the terms of Joint
Resolution 520 of 1984, having been submitted to the qualified electors at the
general election of 1984 as prescribed in Section 1 of Article XVI of the
Constitution of South Carolina, 1895, and a favorable vote having been received
thereon, is ratified and declared to be a part of the Constitution, so that item
(c) of subsection (6) of Section 13 of Article X is amended to read:
"(c) General obligation bonds for any public purpose including those
purposes set forth in (a) and (b) may be issued; provided, that the maximum
annual debt service on all general obligation bonds of the State thereafter to
be outstanding (excluding highway bonds, state institution bonds, tax
anticipation notes and bond anticipation notes) must not exceed five percent of
the general revenues of the State for the fiscal year next preceding (excluding
revenues which are authorized to be pledged for state highway bonds and state
institution bonds).
Upon implementation of the provisions of this item by law, the percentage rate
of general revenues may be reduced to four or increased to seven percent by
legislative enactment passed by a two-thirds vote of the total membership of the
Senate and a two-thirds vote of the total membership of the House of
Representatives.
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 item. Unless during such session
that review results in an amendment to or repeal of the law implementing this
item, which must be accomplished by legislative enactment passed by a two-thirds
vote of the total membership of the Senate and a two-thirds vote of the total
membership of the House of Representatives."
SECTION 5. The amendment to Section 36 of Article III of the Constitution of
South Carolina, 1895, proposed under the terms of Joint Resolution 520 of 1984,
having been submitted to the qualified electors at the general election of 1984
as prescribed in Section 1 of Article XVI of the Constitution of South Carolina,
1895, and a favorable vote having been received thereon, is ratified and declared
to be a part of the Constitution, so that Section 36 of Article III is amended
to read:
"Section 36. The General Assembly shall provide for a General Fund
Reserve of four 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.
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.
Upon implementation of the provisions of this section, the percentage rate of
general fund revenue may be reduced to three or increased to five percent by the
special vote provided in this section.
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 section. Unless during such
session that review results in an amendment to or repeal of the law implementing
this section, which must be accomplished by the special vote provided in this
section, the existing percentage rate shall remain unchanged.
The special vote referred to in this section 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.
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 of future revenues until
four percent general fund reserve is again reached and maintained. Provided,
that one percent of the general fund revenue of the latest completed fiscal year
must be restored to the reserve fund the first two fiscal years following the
deficit and two percent of the general fund revenue of the latest completed
fiscal year must be restored to the reserve fund the third fiscal year following
the deficit." |