SPENDING RESTRICTIONS

Limitations on Increased Taxes

• SQ 640 - 1992
  -- Amended state constitution to require revenue bills to be approved by the voters, unless they receive approval of 3/4 of the members of each House.
  > No major tax rate increases or new taxes have been enacted by the Legislature since passage of SQ 640

Balanced Budget

• The State Constitution requires the Legislature and Governor to balance the budget within available revenues

Line Item Veto

• The Governor has line item veto authority over all appropriation bills; Vetoes can be overridden by a super-majority (75%) vote by Senate and House of Representatives.

Budgetary Limitations - Set in Appropriation Bills

• Line Items
  > Each specified amount may only be expended for the purpose stated
• Total Operating Expenditures
  > Limits agencies to expending no more than stated amount regardless of funding sources
• Activity/Division Limits
  > Limits total operating expenditures for that activity regardless of funding sources
• Full-Time Equivalent Employees (FTE's)
  > Limits the number of permanent and temporary employees an agency may employ
• Lease Purchase Agreements
  > Limits expenditures for lease purchase agreements
• Maximum Director's Salary
  > Limits the amount paid an agency director regardless of funding source

CITIZEN EDUCATION

• Overview of Process
• Official Estimating Process
• Where does the Money Come From that the Legislature Appropriates?
• Where does the Money Go?
• Spending Restrictions
• What are the Top 10 Appropriations?