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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THE GENERAL ASSEMBLY'S APPROPRIATION OF THESE REVENUES AND TO PROVIDE THAT THE IMPLEMENTING LAW MAY NOT BE AMENDED OR REPEALED EXCEPT BY A SPECIAL VOTE DEFINED AS A RECORDED ROLL-CALL VOTE OF AT LEAST TWO-THIRDS OF THE MEMBERS IN EACH BRANCH PRESENT AND VOTING, BUT NOT LESS THAN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.
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 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, 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 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'."
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