April 9, 2008, Introduced by Reps. Meltzer, Agema, Garfield and Stahl and referred to the Committee on Appropriations.
A joint resolution proposing an amendment to the state
constitution of 1963, by amending section 26 of article IX, to
further limit state spending.
Resolved by the Senate and House of Representatives of the
state of Michigan, That the following amendment to the state
constitution of 1963, to further limit state spending, is proposed,
agreed to, and submitted to the people of the state:
ARTICLE IX
Sec. 26. There is hereby established a limit on the total
amount of taxes which may be imposed by the legislature in any
fiscal year on the taxpayers of this state. This limit shall not be
changed without approval of the majority of the qualified electors
voting thereon, as provided for in Article 12 of the Constitution.
Effective with fiscal year 1979-1980, and for each fiscal year
thereafter, the legislature shall not impose taxes of any kind
which, together with all other revenues of the state, federal aid
excluded,
exceed the revenue limit established in this section. The
Effective with fiscal year 1979-1980 through fiscal year 2008-2009,
the revenue limit shall be equal to the product of the ratio of
Total State Revenues in fiscal year 1978-79 divided by the Personal
Income of Michigan in calendar year 1977 multiplied by the Personal
Income of Michigan in either the prior calendar year or the average
of Personal Income of Michigan in the previous three calendar
years, whichever is greater. Beginning fiscal year 2009-2010, the
revenue limit shall be a per capita revenue limit based on the
estimated population of this state in the current fiscal year as
determined by the auditor general multiplied by a fraction, the
numerator of which is the total state revenue in the immediately
preceding fiscal year adjusted by the change in the general price
level during the immediately preceding fiscal year and the
denominator of which is the population of this state in the
immediately preceding fiscal year, as determined by the auditor
general.
For any fiscal year in the event that Total State Revenues
exceed the revenue limit established in this section by 1% or more,
the excess revenues shall be refunded pro rata based on the
liability
reported on the Michigan income tax and single Michigan
business tax (or its successor tax or taxes) annual returns filed
following the close of such fiscal year. If the excess is less than
1%, this excess may be transferred to the State Budget
Stabilization Fund.
The revenue limitation established in this section shall not
apply to taxes imposed for the payment of principal and interest on
bonds, approved by the voters and authorized under Section 15 of
this Article, and loans to school districts authorized under
Section 16 of this Article.
If responsibility for funding a program or programs is
transferred from one level of government to another, as a
consequence of constitutional amendment, the state revenue and
spending limits may be adjusted to accommodate such change,
provided that the total revenue authorized for collection by both
state and local governments does not exceed that amount which would
have been authorized without such change.
Resolved further, That the foregoing amendment shall be
submitted to the people of the state at the next general election
in the manner provided by law.