HOUSE JOINT RESOLUTION 9

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Thomas C. Taylor

A JOINT RESOLUTION

PROPOSING AN AMENDMENT TO ARTICLE 4 OF THE CONSTITUTION OF NEW MEXICO TO LIMIT THE LEGISLATURE'S ABILITY TO INCREASE STATE EXPENDITURES.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. It is proposed to amend Article 4 of the constitution of New Mexico by adding a new section to read:

          "A. For a fiscal year beginning on or after July 1, 2011, the legislature during its regular session prior to the beginning of the fiscal year shall set an expenditure limit:

                (1) in an amount calculated pursuant to this subsection to limit the expenditure increase in the following fiscal year to no more than the expenditure limit of the prior fiscal year plus the following amount:

                     (a) the percent increase in the population of New Mexico in the most recent prior calendar year for which there is population data available, as estimated annually by the bureau of business and economic research located at the university of New Mexico, multiplied by the prior fiscal year's expenditure limit; plus

                     (b) the product of three and six-tenths percent multiplied by the prior fiscal year's expenditure limit; and

                (2) that includes:

                     (a) an operating reserve of no less than ten percent of the expenditure limit from funds deposited in the state general fund and from no other fund in the state treasury or otherwise under state control that may be appropriated pursuant to standards established in law for expenditure in economic emergencies; and

                     (b) an extraordinary operating reserve of four percent in addition to the operating reserve described in Subparagraph (a) of this paragraph that may be used only: 1) if current fiscal year revenues fall below the prior fiscal year revenues, as determined by the consensus revenue estimating group, the members of which are economists from the executive branch and legislative branch; and 2) after the legislature has voted by a two-thirds' majority vote of the total membership to appropriate money from the extraordinary operating reserve for use.

          B. In a fiscal year in which the revenues as determined prior to or during the legislative session by the consensus revenue estimating group fall more than five percent below revenues from the prior fiscal year, the legislature shall determine the expenditure limit based on an average of the expenditure limits of the five fiscal years immediately prior to the fiscal year in which the expenditure limit is being determined.

          C. For fiscal year 2012, the legislature shall set an expenditure limit during the first session of the fiftieth legislature by adding to the expenditures made in fiscal year 2010, an amount equal to:

                (1) the percent increase in the population of New Mexico in the most recent prior calendar year for which there is population data available, as estimated annually by the bureau of business and economic research located at the university of New Mexico, multiplied by the total expenditures from the general fund made in fiscal year 2010; plus

                (2) the product of three and six-tenths percent multiplied by the total expenditures from the general fund made in fiscal year 2010.

           D. One hundred percent of the unexpended or unencumbered balance in the general fund on June 30 of fiscal year 2012 or any subsequent fiscal year in excess of the expenditure limit set annually by the legislature for that fiscal year pursuant to this section shall be distributed to the severance tax permanent fund."

     Section 2. The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at the next general election or at any special election prior to that date that may be called for that purpose.

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