Kansas Rainy Day Fund Amendment, constitutional text changes

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Back to Kansas Rainy Day Fund Amendment (2010)

Article 14 would be added to the Kansas Constitution to read:

(a) On July 1, 2011, a budget stabilization fund and a debt prepayment fund shall be established and maintained in the state treasury.
(b) When state tax receipts for a fiscal year increase by more than three percent over state tax receipts for the preceding fiscal year:
(1) Any increase in excess of three percentup to the next one percent of state tax receipts collectedshall be deposited in the budget stabilization fund; and
(2) Any increase in excess of four percent up to the next one-half percent of state tax receipts collected shall be deposited in the debt prepayment fund. Nothing in this subsection shall require state tax receipts to be deposited in the budget stabilization fund when the budget stabilization fund balance exceeds fifteen percent of the preceding fiscal year’s state tax receipts. Nothing in this subsection shall require state tax receipts to be deposited in the debt prepayment fund when the debt prepayment fund balance exceeds fifteen percent of the preceding fiscal year’s total amount of principal of bonded indebtedness serviced by appropriations from the state general fund.
(c) The legislature may provide, by law, for additional amounts of state tax receipts to be deposited in the budget stabilization fund and the debt prepayment fund.
(d) (1) Withdrawals from the budget stabilization fund may occur in the current fiscal year only when the current fiscal year’s estimated state tax receipts are less than the amount of actual state tax receipts collected or otherwise received in the preceding fiscal year. The amount subject to withdrawal shall not exceed the difference between the current fiscal year’s estimated state tax receipts and the amount of actual state tax receipts collected or otherwise received in the preceding fiscal year except that such difference shall be reduced by the amount of the current fiscal year’s estimated state tax receipts not collected or otherwise received as a result of any kind of tax reduction legislation enacted by the legislature and approved by the governor in the current or preceding fiscal year.
(2) Withdrawals from the budget stabilization fund may occur in the ensuing fiscal year only when the ensuing fiscal year’s estimated state tax receipts are less than the amount of estimated state tax receipts in the current fiscal year. The amount subject to withdrawal shall not exceed the difference between the ensuing fiscal year’s estimated state tax receipts and the amount of estimated state tax receipts in the current fiscal year except that such difference shall be reduced by the amount of the ensuing fiscal year’s estimated state tax receipts not collected or otherwise received as a result of any kind of tax reduction legislation enacted by the legislature and approved by the governor in the current or preceding fiscal year.
(3) For the purposes of subsections (d)(1) and (d)(2), the attorney general shall be responsible for certifying whether any kind of tax reduction legislation was enacted by the legislature and approved by the governor and if so, the governor shall certify the amount of such reduction. Any withdrawal authorized by this subsection shall be provided for by law enacted in a separate bill that does not include any other matter except a statement that the conditions prescribed by this subsection exist and the authority to transfer a specific amount of money from the budget stabilization fund to the state general fund.
(e) (1) Withdrawals from the debt prepayment fund may occur only to provide for calling and redeeming selected bonds for which debt service is paid by appropriations from the state general fund in accordance with their terms on or after their first optional redemption date and prior to maturity.
(2) Prior to any withdrawal from the debt prepayment fund authorized by this subsection, the governor shall be responsible for determining and selecting which bonds will produce the greatest debt service savings to the state general fund, and the attorney general shall be responsible for certifying that the selected bonds are available for optional redemption. Any withdrawal authorized by this subsection shall be provided for by law enacted in a separate bill that does not include any other matter except a statement that the conditions prescribed by this subsection exist and the authority to transfer a specific amount of money from the debt prepayment fund to the state general fund for the purpose of calling and redeeming selected bonds.
(f) Amounts in the budget stabilization fund and the debt prepayment fund may be invested as provided by law and the earnings thereon shall be retained in the budget stabilization fund and the debt prepayment fund.
(g) As used in this section, ‘‘state tax receipts means receipts from any state income tax, sales tax, compensating use tax or other excise tax or tax in the nature of an excise tax, or estate or inheritance tax, or tax in the nature of an estate or inheritance tax, but shall not include receipts from any property tax, or tax in the nature of a property tax, or any tax on motor fuels.
(h) The legislature may enact laws to carry out the purposes of this section.

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