1.1                          A bill for an act 
  1.2             proposing an amendment to the Minnesota Constitution, 
  1.3             article XI, section 1; providing for limits on state 
  1.4             spending increases. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [CONSTITUTIONAL AMENDMENT.] 
  1.7      An amendment to the Minnesota Constitution, article XI, 
  1.8   section 1, is proposed to the people.  If the amendment is 
  1.9   adopted, the section will read as follows: 
  1.10     Section 1.  (a) No money shall be paid out of the treasury 
  1.11  of this state except in pursuance of an appropriation by 
  1.12  law within the spending limits set by this section.  
  1.13     (b) For purposes of paragraph (c): 
  1.14     (1) "state fiscal year spending" means all state 
  1.15  expenditures and reserve increases except, as to both, those for 
  1.16  refunds made in the current or next fiscal year or those from 
  1.17  gifts, federal funds, collections from another government, 
  1.18  pension contributions by employees and pension fund earnings, 
  1.19  reserve transfers or expenditures, damage awards, or property 
  1.20  sales; and 
  1.21     (2) "inflation" means the percentage change in the United 
  1.22  States Bureau of Labor Statistics Consumer Price Index for the 
  1.23  Minneapolis-St. Paul metropolitan area, all items, all urban 
  1.24  consumers, or its successor index. 
  1.25     (c) The maximum annual percentage change in state fiscal 
  2.1   year spending equals inflation plus the percentage change in 
  2.2   state population in the prior calendar year.  Population is 
  2.3   determined by the most recent federal census estimates and 
  2.4   adjusted every decade to match the federal census. 
  2.5      (d) If revenue from sources not excluded from fiscal year 
  2.6   spending exceeds those limits in dollars for that fiscal year, 
  2.7   the excess shall be refunded in the next fiscal year as provided 
  2.8   by law.  
  2.9      The initial state spending base is state fiscal year 
  2.10  spending for fiscal year 2005.  Future creation of state bonded 
  2.11  debt shall increase, and retiring in financing district bonded 
  2.12  debt shall lower fiscal year spending by the annual debt service 
  2.13  so funded.  Debt service changes, reductions, and refunds are 
  2.14  dollar amounts that are exceptions to, and not part of, any 
  2.15  district base. 
  2.16     Sec. 2.  [SUBMISSION TO VOTERS.] 
  2.17     The proposed amendment must be submitted to the people at 
  2.18  the 2004 general election.  The question submitted shall be: 
  2.19     "Beginning July 1, 2005, shall the Minnesota Constitution 
  2.20  be amended to limit increases in state spending to a percentage 
  2.21  no greater than the sum of the percentage increase in the 
  2.22  consumer price index plus the percentage increase in state 
  2.23  population? 
  2.24                                     Yes .......
  2.25                                     No ........"