Senate Bill 2542

(As Passed the Senate)

AN ACT TO AMEND SECTIONS 27-103-125, 27-103-139 AND 27-103-211, MISSISSIPPI CODE OF 1972, TO REVISE THE PERCENTAGE LIMITATION ON LEGISLATIVE APPROPRIATION FROM THE STATE GENERAL FUND OVER A THREE-YEAR PERIOD; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 27-103-125, Mississippi Code of 1972, is amended as follows:

27-103-125. The proposed budget of each state agency shall show the amounts required for operating expenses separately from the amounts required for permanent improvements. The overall budget shall show, separately by each source, the estimated amount of general fund revenue and of special fund revenues of general fund agencies. The total proposed expenditures in Part 1 of the overall budget shall not exceed the amount of estimated revenues which will be available in the general and special funds for appropriation or use during the succeeding fiscal year, including any balances which will be on hand in the general and special funds at the close of the then current fiscal year. Beginning with the budget for fiscal year 1994, the total proposed expenditures from the State General Fund in Part 1 of the overall budget shall not exceed ninety-eight percent (98%) of the amount of general fund revenue estimate for the succeeding fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. Provided, however, that beginning with the budget for fiscal year 2004, the total proposed expenditures from the State General Fund in Part 1 of the overall budget shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for the succeeding year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. Beginning with the budget for fiscal year 2005, the total proposed expenditures from the State General Fund in Part 1 of the overall budget shall not exceed ninety-seven and one-half percent (97.5%) of the amount of the general fund revenue estimate for the succeeding year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. Beginning with the budget for fiscal year 2006 and fiscal years thereafter, the total proposed expenditures from the State General Fund in Part 1 of the overall budget shall not exceed ninety-seven percent (97%) of the amount of the general fund revenue estimate for the succeeding year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. The general fund revenue estimate shall be the estimate jointly adopted by the Governor and the Joint Legislative Budget Committee. Unencumbered balances in general funds that will be available and on hand at the close of the current fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund pursuant to Section 27-103-203. The Legislative Budget Office may recommend additional taxes or sources of revenue if in its judgment such additional funds are necessary to adequately support the functions of the state government.

SECTION 2. Section 27-103-139, Mississippi Code of 1972, is amended as follows:

27-103-139. On or before November 15 preceding each regular session of the Legislature, except the first regular session of a new term of office, the Governor shall submit to the members of the Legislature, the Legislative Budget Office or the members-elect, as the case may be, and to the executive head of each state agency a balanced budget for the succeeding fiscal year. Beginning with the 1996 fiscal year, the budget submitted shall be prepared in a format which will include performance measurement data associated with the various programs operated by each agency. The total proposed expenditures in the balanced budget shall not exceed the amount of estimated revenues that will be available for appropriation or use during the succeeding fiscal year, including any balances that will be on hand at the close of the then current fiscal year, as determined by the revenue estimate jointly adopted by the Governor and the Legislative Budget Committee. Beginning with the budget for fiscal year 1994, the total proposed expenditures from the State General Fund in the balanced budget shall not exceed ninety-eight percent (98%) of the amount of general fund revenue estimate for the succeeding fiscal year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. Provided, however, that beginning with the budget for fiscal year 2004, the total proposed expenditures from the State General Fund in the balanced budget shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for the succeeding year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. Beginning with the budget for fiscal year 2005, the total proposed expenditures from the State General Fund in the balanced budget shall not exceed ninety-seven and one-half percent (97.5%) of the amount of the general fund revenue estimate for the succeeding year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. Beginning with the budget for fiscal year 2006, and fiscal years thereafter, the total proposed expenditures from the State General Fund in the balanced budget shall not exceed ninety-seven percent (97%) of the amount of the general fund revenue estimate for the succeeding year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. The general fund revenue estimate shall be the estimate jointly adopted by the Governor and the Joint Legislative Budget Committee. Unencumbered balances in general funds that will be available and on hand at the close of the fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund and the Education Enhancement Fund pursuant to Section 27-103-203.

The revenues used in preparing the balanced budget shall be only those revenues that will be available under the general laws of the state as they exist when the balanced budget is prepared, and shall not include any proposed revenues that would become available only after the enactment of new legislation. If the Governor has any recommendations for additional proposed expenditures or proposed revenues that are not included in his balanced budget, he shall submit those recommendations in a supplement that is separate from his balanced budget, and whenever the Governor recommends any such additional proposed expenditures, he also shall recommend proposed revenues that are sufficient to fund the additional proposed expenditures, providing specific details regarding the sources and the total amount of those proposed revenues.

The Governor may employ a budget officer for the purpose of receiving information from the State Fiscal Officer and preparing his recommendations on the budget. In the event the Governor determines that information received from the State Fiscal Officer is not sufficient to enable him to prepare his budget recommendations, he may request an appropriation from the Legislature to provide additional staff within the Governor's Office for such purpose. At the first regular session after his election for Governor, the Governor shall submit any budget recommendations plus the required revenue source recommendations no later than January 31 of such year.

SECTION 3. Section 27-103-211, Mississippi Code of 1972, is amended as follows:

27-103-211. Beginning with the appropriations for fiscal year 1994, the total sum appropriated by the Legislature from the State General Fund for any fiscal year shall not exceed ninety-eight percent (98%) of the general fund revenue estimate for that fiscal year developed by the Tax Commission and the University Research Center and adopted by the Joint Legislative Budget Committee, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. The unencumbered balances in general funds that will be available and on hand at the close of the fiscal year shall not include projected amounts required to be deposited into the Working Cash-Stabilization Reserve Fund pursuant to Section 27-103-203. Provided, however, that beginning with the budget for fiscal year 2004, the total proposed expenditures from the State General Fund in Part 1 of the overall budget shall not exceed one hundred percent (100%) of the amount of the general fund revenue estimate for the succeeding year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. Beginning with the budget for fiscal year 2005, the total proposed expenditures from the State General Fund in Part 1 of the overall budget shall not exceed ninety-seven and one-half percent (97.5%) of the amount of the general fund revenue estimate for the succeeding year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year. Beginning with the budget for fiscal year 2006 and fiscal years thereafter, the total proposed expenditures from the State General Fund in Part 1 of the overall budget shall not exceed ninety-seven percent (97%) of the amount of the general fund revenue estimate for the succeeding year, plus any unencumbered balances in general funds that will be available and on hand at the close of the then current fiscal year.

SECTION 4. This act shall take effect and be in force from and after its passage.