Beginning with the 2019-20 fiscal year, the bill authorizes the state to annually retain and spend all state revenues in excess of the constitutional limitation on state fiscal year spending that the state would otherwise be required to refund. The bill is a referendum that will be submitted to the voters at the statewide election held on November 5, 2019, and approval of the ballot title at the election constitutes a voter-approved revenue change to the constitutional limitation on state fiscal year spending.
If approved, an amount of money equal to the state revenues retained under this measure is designated as part of the general fund exempt account. The general assembly is required to appropriate or the state treasurer is required to transfer this money to provide funding for:
- Public schools;
- Higher education; and
- Roads, bridges, and transit.
Legislative council staff will be required to specify this retained amount and its associated uses in an annual report that it currently prepares related to revenue retained and spent under referendum C. In addition, the state auditor is required to contract with a private entity to annually conduct a financial audit regarding the use of the money that the state retains and spends under this measure.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)