BILL REQ. #:  S-1065.2 

READ FIRST TIME 01/30/03.   

     BE IT RESOLVED, BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE STATE OF WASHINGTON, IN LEGISLATIVE SESSION ASSEMBLED:
     THAT, At the next general election to be held in this state the secretary of state shall submit to the qualified voters of the state for their approval and ratification, or rejection, an amendment to Article VII of the Constitution of the state of Washington by adding a new section to read as follows:

     Article VII, section . . .. (a) A debt service reserve fund shall be established and maintained in the state treasury. Expenditures from the fund may be used only to pay debt service commitments on general obligation bonds and may not be used for early retirement of debt or to increase debt service payments above the statutory or constitutional debt limits. Appropriations or expenditures from the debt service reserve fund shall not result in either an increase or a reduction to any state expenditure limit.
     (b) By June 30th of each fiscal year there shall be transferred to the debt service reserve fund an amount equal to one percent of the forecasted general state revenues for that fiscal year. Nothing in this subsection (b) shall prevent the appropriation of additional amounts to the debt service reserve fund.
     (c) Each fiscal quarter, a state forecast council shall estimate state employment growth for the current and next two fiscal years.
     (d) If the forecasted employment growth for any fiscal year is estimated to be less than one percent, then for that fiscal year moneys may be withdrawn and appropriated from the debt service reserve fund by the favorable vote of a majority of the members elected to each house of the legislature. Any amount may be withdrawn and appropriated from the debt service reserve fund at any time by the favorable vote of at least three-fifths of the members of each house of the legislature.
     (e) Amounts in the debt service reserve fund may be invested as provided by law and retained in that fund. When the balance in the debt service reserve fund, including investment earnings, equals more than ten percent of the estimated general state revenues in the prior fiscal year, the legislature may, at any time for any fiscal year, by the favorable vote of a majority of the members elected to each house, withdraw and appropriate amounts in the fund, to the extent that the balance exceeds ten percent.
     (f) As used in this section, "general state revenues" has the meaning set forth in Article VIII, section 1 of the Constitution. Forecasts and estimates shall be made by a state forecast council appointed as provided by statute and confirmed by the favorable vote of three-fifths of the members of the senate.
     (g) The legislature shall enact appropriate laws to carry out the purposes of this section.
     (h) This section shall be effective as of the second fiscal year following the fiscal year in which it is approved by the qualified electors of the state.

     BE IT FURTHER RESOLVED, That the secretary of state shall cause notice of this constitutional amendment to be published at least four times during the four weeks next preceding the election in every legal newspaper in the state.