Monday, October 1, 2012 7:06 am, | News
Vote November 6, 2012
October 1, 2012
Information on Amendment # 3This proposed amendment to the State Constitution replaces the existing state revenue limitation based on Florida personal income growth with a new state revenue limitation based on inflation and population changes. Under the amendment, state revenues, as defined in the amendment, collected in excess of the revenue limitation must be deposited into the budget stabilization fund until the fund reaches its maximum balance, and thereafter shall be used for the support and maintenance of public schools by reducing the minimum financial effort required from school districts for participation in a state-funded education finance program, or, if the minimum financial effort is no longer required, returned to the taxpayers. The Legislature may increase the state revenue limitation through a bill approved by a super majority vote of each house of the Legislature. The Legislature may also submit a proposed increase in the state revenue limitation to the voters. The Legislature must implement this proposed amendment by general law. The amendment will take effect upon approval by the electors and will first apply to the 2014-2015 state fiscal year.
During tough economic times, when tax revenues drop and there is a greater need for government services, this amendment would make it impossible for agencies to meet demand, even when there is available revenue. They say it threatens funding for critical government services like Public Education.If passed, Amendment 3 would impose a stricter formula for calculating the revenue limit and, as a result, increase the likelihood it would limit government spending. The new formula would be based on annual population growth and inflation, instead of personal income.. The Effects and Impacts of Amendment 3
Constitutional Amendment No. 3 would revise the method by which the state revenue limitation in any given state fiscal year is calculated. This amendment is one of the more complex of those proposed.
The proposed amendment “limits” state revenues collected beginning in FY 2014–2015 to the same amount collected in the previous fiscal year (2013–2014) with adjustments. In other words, the prior state fiscal year revenue collected determines the base state revenue for the next fiscal year. This is then multiplied by a “growth factor” and a small adjustment factor (to be phased out after state FY 2017–2018) to determine the revenue limit.
The “adjustment for growth” in the state FY revenue base, as it is referred to in the amendment, is calculated using the preceding five-year average of an inflation factor and a population growth factor. The inflation factor is defined as the percent change in the calendar year annual average Consumer Price Index-Urban (CPI-U) plus one. The population growth factor is the percent change in the state’s current population on April 1, compared to the state’s population in the prior year on April 1, plus one.
This is a BAD idea!!!!
Both comments and pings are currently closed.