2012 -- H 7302

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LC00505

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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J O I N T R E S O L U T I O N

TO APPROVE AND PUBLISH AND SUBMIT TO THE ELECTORS A PROPOSITION OF

AMENDMENT TO THE CONSTITUTION OF THE STATE (STATE BUDGET)

     Introduced By: Representatives Schadone, Nunes, and Corvese

     Date Introduced: February 01, 2012

     Referred To: House Finance

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     RESOLVED, That a majority of all members elected to each house of the general

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assembly voting therefor, the following amendment to the Constitution of the state be proposed to

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the qualified electors of the state in accordance with the provisions of Article XIV of the

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Constitution for their approval and that it take the place of Article IX section 16 which is hereby

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amended to read as follows:

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     Section 16. Limitation on state spending. [Effective July 1,2007 until July 1, 2012].

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— (a) No appropriation, supplemental appropriation or budget act shall cause the aggregate state

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general revenue appropriations enacted in any given fiscal year to exceed ninety-eight percent

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(98%) of the estimated state general revenues for such fiscal year from all sources, including

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estimated unencumbered general revenues to the new fiscal year remaining at the end of the

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previous fiscal year. Estimated unencumbered general revenues are calculated by taking the

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estimated general revenue cash balance at the end of the fiscal year less estimated revenue

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anticipation bonds or notes, estimated general revenue encumbrances, estimated continuing

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general revenue appropriations and the amount of the budget reserve account at the end of said

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fiscal year.

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     (b) The amount between the applicable percentage in (a) and one hundred percent (100%)

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of the estimated state general revenue for any fiscal year as estimated in accordance with

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subsection (a) of this section shall be appropriated in any given fiscal year into the budget reserve

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account; provided, however, that no such payment will be made which would increase the total of

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the budget reserve account to more than three percent (3%) of only the estimated state general

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revenues as set by subsection (a) of this section. In the event that the payment to be made into the

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budget reserve account would increase the amount in said account to more than three percent

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(3%) of estimated state general revenues that said amount shall be transferred to the Rhode Island

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Capital Plan fund to be used solely for funding capital projects.

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     (c) Within forty-five (45) days after the close of any fiscal year, all unencumbered

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general revenue in the year end surplus account from the said fiscal year shall be transferred to

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the general fund.

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     (d) Provided, further that during any fiscal year, any increase in state spending shall not

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exceed the increase in the Consumer Price Index (CPI) on a percentage basis for any fiscal year,

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but in no event shall it exceed three percent (3%).

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     Section 16. Limitation on state spending. [Effective July 1, 2012]. — (a) No

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appropriation, supplemental appropriation or budget act shall cause the aggregate state general

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revenue appropriations enacted in any given fiscal year to exceed ninety seven percent (97%) of

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the estimated state general revenues for such fiscal year from all sources, including estimated

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unencumbered general revenues to the new fiscal year remaining at the end of the previous fiscal

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year. Estimated unencumbered general revenues are calculated by taking the estimated general

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revenue cash balance at the end of the fiscal year less estimated revenue anticipation bonds or

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notes, estimated general revenue encumbrances, estimated continuing general revenue

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appropriations and the amount of the budget reserve account at the end of said fiscal year.

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     (b) The amount between the applicable percentage in (a) and one hundred percent (100%)

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of the estimated state general revenue for any fiscal year as estimated in accordance with

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subsection (a) of this section shall be appropriated in any given fiscal year into the budget reserve

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account; provided, however, that no such payment will be made which would increase the total of

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the budget reserve account to more than five percent (5%) of only the estimated state general

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revenues as set by subsection (a) of this section. In the event that the payment to be made into the

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budget reserve account would increase the total of the budget reserve account to more than five

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percent (5%) of only the estimated state general revenues as set by subsection (1) of this section.

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In the event that the payment to be made into the budget reserve account would increase the

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amount in said account to more than five percent (5%) of estimated state general revenues that

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said amount shall be transferred to the Rhode Island Capital Plan fund to be used solely for

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funding capital projects.

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     (c) Within forty-five (45) days after the close of any fiscal year, all unencumbered

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general revenue in the year end surplus account from the said fiscal year shall be transferred to

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the general fund.

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     (d) Provided, further that during any fiscal year, any increase in state spending shall not

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exceed the increase in the Consumer Price Index (CPI) on a percentage basis for any fiscal year,

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but in no case shall it exceed three percent (3%).

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     RESOLVED, That this amendment shall take, in the Constitution of the state, the place of

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Section 16, Article IX of the Constitution; it is further

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     RESOLVED, That the said proposition of amendment shall be submitted to the electors

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for their approval or rejection at the next statewide general election. The voting places in the

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several cities and towns shall be kept open during the hours required by law for voting therein for

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general officers of the state; and be it further

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     RESOLVED, That the secretary of state shall cause the said proposition of amendment to

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be published as a part of this resolution in the newspapers of the state prior to the date of the said

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meetings of the said electors; and the said proposition shall be inserted in the warrants or notices

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to be issued previous to said meetings of the electors for the purpose of warning the town, ward,

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or district meetings, and said proposition shall be read by the town, ward or district meetings to

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be held as aforesaid; and be it further

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     RESOLVED, That the town, ward and district meetings to be aforesaid shall be warned,

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and the list of voters shall be canvassed and made up, and the said town, ward and district

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meetings shall be conducted in the same manner as now provided by law for the town, ward and

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district meetings for the election of general officers of the state.

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LC00505

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