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fiscal
year (absent any other state law that increases those funds in an
equal, or larger, amount) above the one percent threshold would
require ratification by the people;
Any
legislation that requires local governments to incur cost increases
due to unfunded state mandates above the one percent threshold would
require ratification by the people.
Before
a tax or fee increase would go to the voters, it must first be
adopted by majorities in both the House and Senate and signed by the
Governor.
The Resolution provides an emergency provision.
A tax increase can become law for one specific year without
voter approval if certain conditions are met.
AS
ECONOMY GROWS, the STATE BUDGET STABILIZES
On
Friday, March 19, the Revenue Estimating Conference (REC) met and
increased the general fund revenue estimates for FY 04 and FY 05.
By law the Legislature cannot spend the additional funds.
They will go to repay the funds borrowed from the Cash Reserve Fund
(CRF).
Under
the expenditure limitation law, the Legislature must use the
December REC estimate for its budget and may not revise spending
based on later estimates. (This
is to prevent late session pressure being applied to the REC to
increase revenue in order to increase spending to reach a compromise
on the budget.) Therefore,
even though the REC increased net general fund revenue by $52
million, by law this must go to the ending balance and not spent.
The
REC found that personal income tax, use and corporate income tax
continue to exceed the December REC estimate and those increases
were the primary reason for increasing the estimate.
Also, tax refunds have not been as large as previously
estimated, which also causes an increase in revenue.
If
these numbers hold up, FY 04 would end with a $35 million surplus
and FY 05 would end with a $110 million surplus.
Ways
& Means Update
Bills
introduced introduced in
committee
this week:
HSB
726- An Act relating to the excise tax imposed upon gasoline.
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Week
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