Second Regular Session
Sixty-first General Assembly
LLS NO. R980016.01 SLE
STATE OF COLORADO
BY REPRESENTATIVE Hagedorn
FINANCE
HOUSE CONCURRENT RESOLUTION 98-1006
SUBMITTING TO THE REGISTERED ELECTORS OF THE STATE
OF COLORADO AN AMENDMENT TO SECTION 20 OF ARTICLE X OF THE CONSTITUTION
OF THE STATE OF COLORADO, CONCERNING EMERGENCIES, AND, IN CONNECTION
THEREWITH, AMENDING THE DEFINITION OF "EMERGENCY", AUTHORIZING
THE ESTABLISHMENT OF A LOWER EMERGENCY RESERVE REQUIREMENT FOR
DISTRICTS DURING ECONOMIC DOWNTURNS, SPECIFYING PROCEDURES FOR
THE EXPENDITURE OF MONEYS FROM A DISTRICT'S EMERGENCY RESERVE,
REQUIRING EXCESS REVENUES TO BE RETAINED AS EMERGENCY RESERVES,
AND ALLOWING VOTERS TO AUTHORIZE THE USE OF SUCH EXCESS REVENUES
FOR PURPOSES OTHER THAN EMERGENCIES.
Resolution Summary
(Note: This summary applies to this resolution
as introduced and does not necessarily reflect any amendments
that may be subsequently adopted.)
For purposes of the constitutional limitation on revenue and spending, amends the definition of "emergency". Authorizes the general assembly or the governing body of a local government to reduce the percentage of fiscal year spending that districts are required to reserve for emergencies during periods of economic downturns, as reflected by objective measures.
Specifies that moneys in the state emergency reserve may be expended only upon the declaration of an emergency by joint resolution adopted by a 2/3rds vote of both houses of the general assembly and approved by the governor. States that moneys in the emergency reserve of a local government may be expended only upon the declaration of an emergency by ordinance or resolution adopted by a 2/3rds vote of the governing body of the local government.
Requires revenues in excess of a district's spending
limit to be retained as emergency reserves to be used only for
declared emergencies. Allows voters to authorize the expenditure
of such excess revenues for purposes other than emergencies or
to authorize the refund of such excess revenues.
Be It Resolved by the House of Representatives of the Sixtyfirst General Assembly of the State of Colorado, the Senate concurring herein:
SECTION 1. At the next election at which such question may be submitted, there shall be submitted to registered electors of the state of Colorado, for their approval or rejection, the following amendment to the constitution of the state of Colorado, to wit:
Section 20 (2) (c), (5), and (7) (d) of article X of the constitution of the state of Colorado are amended to read:
Section 20. The Taxpayer's Bill
of Rights. (2) Term definitions. Within
this section: (c) "Emergency"
excludes economic conditions, revenue
shortfalls, or district salary or fringe benefit increases
MEANS A SUDDEN, URGENT, USUALLY UNFORESEEN OCCURRENCE OR OCCASION
THAT REQUIRES IMMEDIATE ACTION AND THAT ARISES IMMEDIATELY SUBSEQUENT
TO A TWELVEMONTH PERIOD DURING WHICH OBJECTIVE MEASURES,
SUCH AS REDUCED GROWTH IN TOTAL WAGES, RETAIL SALES, OR EMPLOYMENT,
REFLECT DOWNTURNS IN THE STATE'S ECONOMY.
(5) Emergency reserves.
(a) (I) To use for declared emergencies only,
EXCEPT AS OTHERWISE PROVIDED IN SUBPARAGRAPHS (II) AND (III) OF
THIS PARAGRAPH (a), each district shall reserve for
1993 1% or more, for 1994 2% or more, and for all later years
3% or more of its fiscal year spending excluding bonded debt service.
Unused reserves apply to the next year's reserve.
(II) FOR ANY FISCAL YEAR COMMENCING IMMEDIATELY SUBSEQUENT TO A TWELVEMONTH PERIOD DURING WHICH OBJECTIVE MEASURES, SUCH AS REDUCED GROWTH IN TOTAL WAGES, RETAIL SALES, OR EMPLOYMENT, REFLECT DOWNTURNS IN THE STATE=S ECONOMY, THE GENERAL ASSEMBLY MAY REDUCE, BY LAW, THE PERCENTAGE OF FISCAL YEAR SPENDING THAT WOULD OTHERWISE BE REQUIRED FOR THE STATE'S EMERGENCY RESERVES UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH (a). NOTHING IN THIS SUBPARAGRAPH (II) SHALL BE CONSTRUED TO ALLOW FOR ANY GIVEN YEAR SAID PERCENTAGE TO BE SET AT ZERO OR FOR THE EMERGENCY RESERVES REQUIREMENT TO BE WAIVED OR ABOLISHED.
(III) FOR ANY FISCAL YEAR COMMENCING IMMEDIATELY SUBSEQUENT TO A TWELVEMONTH PERIOD DURING WHICH OBJECTIVE MEASURES, SUCH AS REDUCED GROWTH IN TOTAL WAGES, RETAIL SALES, OR EMPLOYMENT, REFLECT DOWNTURNS IN THE STATE=S ECONOMY, THE GOVERNING BODY OF A LOCAL GOVERNMENT MAY REDUCE, BY ADOPTION OF AN ORDINANCE OR RESOLUTION, AS APPROPRIATE, THE PERCENTAGE OF FISCAL YEAR SPENDING THAT WOULD OTHERWISE BE REQUIRED FOR THE LOCAL GOVERNMENT'S EMERGENCY RESERVES UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH (a). NOTHING IN THIS SUBPARAGRAPH (III) SHALL BE CONSTRUED TO ALLOW FOR ANY GIVEN YEAR SAID PERCENTAGE TO BE SET AT ZERO OR FOR THE EMERGENCY RESERVES REQUIREMENT TO BE WAIVED OR ABOLISHED.
(b) (I) THE STATE EMERGENCY RESERVES MAY BE EXPENDED ONLY UPON THE DECLARATION OF AN EMERGENCY BY THE PASSAGE OF A JOINT RESOLUTION WHICH IS APPROVED BY A TWOTHIRDS MAJORITY OF THE MEMBERS OF BOTH HOUSES OF THE GENERAL ASSEMBLY AND WHICH IS APPROVED BY THE GOVERNOR IN ACCORDANCE WITH SECTION 39 OF ARTICLE V OF THIS CONSTITUTION.
(II) THE EMERGENCY RESERVES OF ANY LOCAL GOVERNMENT MAY BE EXPENDED ONLY UPON THE DECLARATION OF AN EMERGENCY BY THE PASSAGE OF AN ORDINANCE OR RESOLUTION, AS APPROPRIATE, WHICH IS APPROVED BY A TWOTHIRDS MAJORITY OF THE GOVERNING BODY OF THE LOCAL GOVERNMENT.
(7) Spending limits.
(d) (I) If revenue from sources not excluded
from fiscal year spending exceeds these limits in dollars for
that fiscal year, the excess shall be refunded
in the next fiscal year RETAINED
BY THE DISTRICT AS EMERGENCY RESERVES TO BE USED FOR DECLARED
EMERGENCIES ONLY IN ACCORDANCE WITH PARAGRAPH (b) OF SUBSECTION
(5) OF THIS SECTION unless voters approve a
revenue change as an offset THE USE
OF SUCH RETAINED EXCESS REVENUES AS PROVIDED IN SUBPARAGRAPH (II)
OF THIS PARAGRAPH (d). EXCESS REVENUES RETAINED AS EMERGENCY
RESERVES PURSUANT TO THIS SUBPARAGRAPH (I) SHALL BE IN ADDITION
TO ANY EMERGENCY RESERVES REQUIRED UNDER SUBSECTION (5) OF THIS
SECTION. Initial district bases are current fiscal year spending
and 1991 property tax collected in 1992. Qualification or disqualification
as an enterprise shall change district bases and future year limits.
Future creation of district bonded debt shall increase, and retiring
or refinancing district bonded debt shall lower, fiscal year spending
and property tax revenue by the annual debt service so funded.
Debt service changes, reductions, (1) and (3) (c) refunds, and
voterapproved revenue changes are dollar amounts that are
exceptions to, and not part of, any district base. Voterapproved
revenue changes do not require a tax rate change.
(II) (A) FOR REVENUES THAT EXCEED A DISTRICT'S LIMIT SPECIFIED IN THIS SUBSECTION (7) FOR ANY GIVEN FISCAL YEAR, VOTERS MAY APPROVE THE EXPENDITURE OF SUCH EXCESS REVENUES FOR ANY PURPOSE OTHER THAN AN EMERGENCY OR MAY APPROVE THE REFUND OF SUCH EXCESS REVENUES IN THE NEXT FISCAL YEAR. ANY BALLOT ISSUE SUBMITTED TO THE VOTERS PURSUANT TO THIS SUBPARAGRAPH (II) SHALL NOT AUTHORIZE THE EXPENDITURE OR REFUND OF EXCESS REVENUES IN AN AMOUNT EXCEEDING THE AMOUNT OF EXCESS REVENUES FOR THE MOST RECENTLY CONCLUDED FISCAL YEAR. IF VOTERS DO NOT APPROVE THE EXPENDITURE OF SUCH EXCESS REVENUES FOR ANY GIVEN FISCAL YEAR PURSUANT TO THIS SUBPARAGRAPH (II) AT THE NEXT ELECTION AT WHICH THE ISSUE MAY BE SUBMITTED IMMEDIATELY SUBSEQUENT TO THE END OF THAT FISCAL YEAR, THE EXCESS REVENUES FOR THAT FISCAL YEAR SHALL BE RETAINED AS EMERGENCY RESERVES AS PROVIDED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH (d). THE EXPENDITURE OF EXCESS REVENUES FOR ANY PURPOSE, OTHER THAN A REFUND, APPROVED BY THE VOTERS PURSUANT TO THIS SUBPARAGRAPH (II) SHALL CONSTITUTE A VOTERAPPROVED REVENUE CHANGE FOR PURPOSES OF THIS SECTION.
(B) FOR PURPOSES OF THIS SUBPARAGRAPH (II), A BALLOT ISSUE MAY BE INITIATED BY THE PEOPLE IN ACCORDANCE WITH THE LAW PRESCRIBING PROCEDURES THEREFOR OR MAY BE REFERRED TO THE PEOPLE BY THE GENERAL ASSEMBLY IN ACCORDANCE WITH THE LAW PRESCRIBING PROCEDURES THEREFOR.
SECTION 2. Each elector voting at said election and desirous of voting for or against said amendment shall cast a vote as provided by law either "Yes" or "No" on the proposition: "AN AMENDMENT TO SECTION 20 OF ARTICLE X OF THE CONSTITUTION OF THE STATE OF COLORADO, CONCERNING EMERGENCIES, AND, IN CONNECTION THEREWITH, AMENDING THE DEFINITION OF "EMERGENCY", AUTHORIZING THE ESTABLISHMENT OF A LOWER EMERGENCY RESERVE REQUIREMENT FOR DISTRICTS DURING ECONOMIC DOWNTURNS, SPECIFYING PROCEDURES FOR THE EXPENDITURE OF MONEYS FROM A DISTRICT'S EMERGENCY RESERVE, REQUIRING EXCESS REVENUES TO BE RETAINED AS EMERGENCY RESERVES, AND ALLOWING VOTERS TO AUTHORIZE THE USE OF SUCH EXCESS REVENUES FOR PURPOSES OTHER THAN EMERGENCIES."
SECTION 3. The votes cast for the adoption or rejection of said amendment shall be canvassed and the result determined in the manner provided by law for the canvassing of votes for representatives in Congress, and if a majority of the electors voting on the question shall have voted "Yes", the said amendment shall become a part of the state constitution.