BILL REQ. #:  Z-0350.1 

Read first time 01/10/2007.   Referred to Committee on Ways & Means.

     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 budget stabilization account shall be established and maintained in the state treasury.
     (b) By June 30th of each fiscal year, an amount equal to one percent of the general state revenues for that fiscal year shall be transferred to the budget stabilization account. Nothing in this subsection (b) shall prevent the appropriation of additional amounts to the budget stabilization account.
     (c) Each fiscal quarter, the state economic and revenue forecast council appointed and authorized as provided by statute, or successor entity, shall estimate state employment growth for the current and next two fiscal years.
     (d) Moneys may be withdrawn and appropriated from the budget stabilization account as follows:
     (i) If the governor declares an emergency and declares that immediate action is needed to preserve public health, protect life, or protect public property, or the governor proclaims a state of emergency as authorized by statute, moneys may be withdrawn and appropriated from the budget stabilization account by a favorable vote of a majority of the members elected to each house of the legislature.
     (ii) If the employment growth forecast for any fiscal year is estimated to be less than one percent, then for that fiscal year moneys may be withdrawn and appropriated from the budget stabilization account by the favorable vote of a majority of the members elected to each house of the legislature.
     (iii) Any amount may be withdrawn and appropriated from the budget stabilization account at any time by the favorable vote of at least three-fifths of the members of each house of the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 budget stabilization account may be invested as provided by law and retained in that account. When the balance in the budget stabilization account, including investment earnings, equals more than ten percent of the estimated general state revenues in that fiscal year, the state treasurer shall deposit the balance, to the extent that the balance exceeds ten percent of the estimated general state revenues, in the education construction fund, subject to such restrictions as may be provided by statute.
     (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 the state economic and revenue forecast council appointed and authorized as provided by statute, or successor entity.
     (g) The legislature shall enact appropriate laws to carry out the purposes of this section.
     (h) This section takes effect July 1, 2008.

     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.