SENATE JOINT RESOLUTION 15

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Kent L. Cravens

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 after January 1, 2010, the legislature during its regular session shall set an expenditure limit 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:

                (1) the percent increase in the population of New Mexico in the most recent prior calendar year for which there is population data available, determined in accordance with legislation adopted to implement this section, multiplied by the immediately prior fiscal year's expenditure limit; plus

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

          B. For fiscal year 2010, the legislature shall set an expenditure limit during the first session of the forty-ninth legislature by adding to the expenditures made in fiscal year 2008 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 multiplied by the total expenditures from the general fund made in fiscal year 2008; plus

                (2) the product of three and six-tenths percent multiplied by the total expenditures from the general fund made in fiscal year 2008.

           C. Money in the general fund at the end of fiscal year 2010 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 in the following manner:

                (1) sixty percent of the unexpended or unencumbered balance in the general fund on June 3O of each fiscal year exceeding the expenditure limit for that fiscal year shall be deposited in the severance tax permanent fund; and

                (2) forty percent of the unexpended or unencumbered balance in the general fund on June 30 of any fiscal year exceeding the expenditure limit for that fiscal year shall be returned on an equal per capita basis to persons filing personal income tax returns for the calendar year."

     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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