AJR 100

This proposed constitutional amendment, proposed to the 2011 legislature on

first consideration, requires the state to account for and report all funds it receives

or expends in accordance with generally accepted accounting principles (GAAP).

The amendment further authorizes the legislature to establish the budgetary

basis of accounting, requires that any deficit of a state fund affected by a budget bill

be reduced annually by 10 percent of any projected increase in tax revenues in that

fund, and requires that once the deficit is eliminated, the legislature may not pass

any bill that would result in a projected deficit.

A constitutional amendment requires adoption by two successive legislatures,

and ratification by the people, before it can become effective.

AJR100, s. 1

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Section

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Section 5 of article VIII of the constitution is amended to read:

AJR100,2,14

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[Article VIII] Section 5. The legislature shall provide for an annual tax

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sufficient to defray the estimated expenses of the state for each year; and whenever

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the expenses of any year shall exceed the income, the legislature shall provide for

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levying a tax for the ensuing year, sufficient, with other sources of income, to pay the

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deficiency as well as the estimated expenses of such ensuing year.

The legislature

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may establish the basis of accounting to be used for budget purposes. In addition to

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the statutory basis of accounting, the state shall account for and report all funds it

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receives or spends including, but not limited to, component units in accordance with

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generally accepted accounting principles. The legislature may not pass any bill that

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would cause an increase in the projected deficit in any state fund under generally

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accepted accounting principles. The legislature shall pass an annual or biennial