Creating fiscal year allowable revenues for the state and local governmental units, returning excess revenue to the taxpayers, requiring electoral approval for certain taxing and spending decisions, and allowing local governmental units to exempt themselves from certain state mandates (first consideration)

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.