BILL REQ. #:  S-1793.1 

Read first time 02/24/11.   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 VIII of the Constitution of the state of Washington by adding a new section to read as follows:

     Article VIII, section . . . (1) A state expenditure limit is established, effective for the fiscal year beginning July 1, 2012, and thereafter. The state expenditure limit for any fiscal year shall be the previous fiscal year's state expenditure limit increased by a percentage rate that equals the fiscal growth factor. For purposes of this section, "fiscal growth factor" means the average of the sum of inflation and state population change for each of the prior three years.
     (2) The state shall not expend from the state general fund and related funds during any fiscal year state moneys in excess of the state expenditure limit established under this section, except pursuant to an emergency declared in law by a favorable vote of three-fifths of the members elected to each house of the legislature.
     (3) The state expenditure limit shall be adjusted at least annually as follows:
     (a) The limit shall be adjusted for the prior year based on actual expenditures and known changes in the fiscal growth factor, as defined by law.
     (b) If the cost of any state program, activity, or function is shifted from the state general fund or a related fund to another source of funding, or if moneys are transferred from the state general fund or related fund to another fund or account, the limit is lowered by the dollar amount of the shift. For the purposes of this subsection, a transfer of money from the state general fund or a related fund to another fund or account includes any state legislative action that has the effect of reducing revenues from a particular source, when such revenues would otherwise be deposited in the state general fund or a related fund, while increasing the revenues from that particular source to another state or local government account.
     (c) If, on or after January 1, 2012, the cost of any state program, activity, or function and the ongoing revenue necessary to fund the program, activity, or function are shifted to the state general fund or a related fund from another fund or account, the limit shall be increased by the dollar amount of the shift.
     (d) If by order of any court, or legislative enactment, the cost of a federal or local government program is transferred to or from the state, the otherwise applicable state expenditure limit shall be increased or decreased, as the case may be, by the dollar amount of the cost of the program.
     (4) The legislature shall not impose responsibility for a new program or increased level of service under an existing program on any political subdivision of the state unless the legislature makes provision, in a manner determined by the legislature, for the costs of the new program or increased level of service.
     (5) The legislature may enact appropriate laws to carry out the purposes of this section.

     BE IT FURTHER RESOLVED, That this amendment is a single amendment within the meaning of Article XXIII, section 1 of the state Constitution.
     The legislature finds that the changes contained in this amendment constitute a single integrated plan for establishing a state expenditure limit. If this amendment is held to be separate amendments, this joint resolution is void in its entirety and is of no further force and effect.

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