SJR 48

This proposed constitutional amendment, proposed to the 2011 legislature on

first consideration, provides that the state, or a school district, technical college

district, or other local governmental unit that collects revenue, excluding a town that

has less than $1,000,000 in allowable revenue, may not collect more in allowable

revenue in any fiscal year than the amount of its allowable revenue in the previous

fiscal year, increased by the lesser of the average percentage increase for the three

most recent years available in the consumer price index for Milwaukee-Racine or the

average percentage increase in state personal income for the three most recent years

available, plus:

1. For the state, the estimated percentage increase, if any, from the previous

year in state population.

2. For school districts, the annual percentage increase, if any, in student

enrollment, averaged over the previous three years.

3. For technical college districts and all other local governmental units, the

percentage increase, if any, from the previous year in taxable property value

attributable to new construction, less the value of any taxable property removed or

demolished in that district or governmental unit.

Under the proposed constitutional amendment, revenues collected in excess of

allowable revenue are returned to taxpayers in the next fiscal year or, in the case of

the state, deposited into a budget stabilization fund. The legislature may spend from

the budget stabilization fund only to provide tax relief, for certain emergency events,

or in any fiscal year in which the amount of allowable revenue is greater than the

amount of collected revenue. The state or any local governmental unit may increase

its allowable revenue, incur debt service by an amount that exceeds seven percent

of allowable revenue, or exclude any tax, fee, or charge from allowable revenue only

with the approval of the electorate at a referendum.

Under the proposed constitutional amendment, a local governmental unit may

exempt itself from any new mandate imposed by the state that is not fully funded by

the state or from any mandate for which the state reduces the percentage of the costs

the state pays for the mandate.

A proposed constitutional amendment requires adoption by two successive

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