STATE CONSTITUTION - BUDGET GLOSSARY

STATE CONSTITUTION - BUDGET GLOSSARY

Article II, Section 8: Initiative

Provides the electorate with the power to propose statutes and amendments to the Constitution and to adopt or reject them.

Article II, Section 9: Referendum

Provides the electorate with the power to approve or reject statutes or parts of statutes except urgency statutes, statutes calling elections, and statutes providing for tax levies or appropriations for usual current expenses of the State.

Article III, Section 3: Separation of Powers

States that the powers of government are legislative, executive and judicial and that persons charged with the exercise of one power may not exercise either of the others except as authorized by the Constitution.

Article III, Section 5: Suits against the State

Provides that suits may be brought against the State in such manner and in such courts as directed by law. NOTE: In 1961, the Supreme Court abolished the common law rule of sovereign immunity.

Article IV, Section 8: California Citizens Compensation Commission

Creates the Commission to establish the annual salary and benefits of state officers Governor, Lt. Governor, Attorney General, Controller, Insurance Commissioner, Secretary of State, Superintendent of Public Instruction, Treasurer, members of Board of Equalization, and members of the Legislature).

Article IV, Section 3: Legislative Sessions

Provides for regular sessions which shall convene on the first Monday in December of each even numbered year and adjourn on November 30 of the following even-numbered year. Also, provides for the Governor to proclaim special sessions to legislate only on subjects specified in the proclamation.

Article IV, Section 7.5: Expenditure Limitation for Legislature

Provides for an expenditure limitation for the Legislature tied to the percentage increase in the State Appropriations Limit for the State established by Article XIIIB.

Article IV, Section 8: Bills and Statutes

Provides various requirements concerning bills and their enactment including the following:

At regular sessions, no bill other than Budget Bill may be heard or acted on until 31 days after a bill is introduced, unless this requirement is waived by ¾ vote of the house.
Passage of bill requires majority vote of each house. Exceptions are urgency statutes (see below) and bills with General Fund appropriations other than for public schools (see Article IV, Section 12 below).
Enacted bills, unless otherwise provided, go into effect the following January 1
Statutes calling elections, statutes providing for tax levies or appropriations for the usual current expenses of the State and urgency statutes go into effect immediately upon their enactment.
Urgency statutes (those necessary for immediate preservation of the public peace, health or safety) require 2/3 vote of each house for passage.

(See Legislative Process for more details )

Article IV, Section 9: Single Subject

Provides that a statute shall embrace but one subject.

Article IV, Section 10: Vetoes and Overrides, Bills

Provides for the Governor to veto a bill and the Legislature to override the veto with a two-thirds vote of each house.
Provides the following timeframes for the Governor to act on a bill before it becomes a law:

First year of the session:

Bill gets to Governor before they recess = 12 days to act

Bill gets to Governor after they recess = 30 days to act

Second year of the session:

Bill gets to Governor before they adjourn = 12 days to act

Bill gets to Governor on or after Sept 1 =until Sept 30 to act

Bills must pass the house of origin by January 31 to be alive in second year of biennium.
Provides for line-item veto by Governor with legislative authority for overrides.

Article IV, Section 12: Governor’s Budget, Budget Bill:

Requires Governor to submit budget to Legislature by January 10. The budget is to include an explanatory message and itemized statements of recommended expenditures and estimated revenues. If recommended expenditures exceed estimated revenues, the Governor must recommend sources for additional revenues.
Authorizes Governor and Governor-elect to require whatever information is deemed necessary to prepare the budget.
Requires Budget Bill to be submitted with Budget.
Requires Legislature to pass budget by June 15.
Limits bills other than the Budget Bill to one item of appropriation.
Requires a two-thirds vote for General Fund appropriations other than for public schools.
Authorizes Legislature to control the submission, approval and enforcement of budgets.

Article V, Section 6: Agency Assignment and Reorganization

Provides that statutes may authorize the Governor to assign and reorganize departments other than those headed by elective officers.

Article VII: Civil Service System

Establishes the structure of the state’s civil service system, the State Personnel Board and the duties of the Board. Specifies those exempt from civil service.

Article XIII A: Tax Limitation

Created by the Jarvis - Gann Initiative to cap ad valoren tax on real property.

Article XIII B: Government Spending Limitation

Provides for a limit on the annual growth in the level of certain appropriations from tax proceeds. The growth in the appropriations limit is calculated using the prior year’s limit, adjusted for changes in the cost of living and population. Other adjustments may be made for such reasons as the transfer of services from one governmental entity to another.

Article XVI, Section 1: Limitations on Creation of State Indebtedness.

Generally prohibits the Legislature from creation of any debt or liability exceeding $300,000, unless passed by c two-thirds vote of the Legislature and approved by the voters.

Article XVI, Section 6: Appropriations for non-state purposes

Prohibits Legislature (1) from giving or lending the credit of the State or local jurisdiction, in aid of or to any person, association, or corporation, or to pledge the credit thereof, for the payment of the liabilities of such entities and (2) from making any gifts of public money or thing of value.

Prohibits appropriations, grants or donations for the purpose or benefit of any institution not under the control of the State except as provided.

Article XVI, Section 6: Prohibition of gifts, loans, or pledging of public credit.

Article XVI, Section 7: Controller’s Warrants

Provides that money may be drawn from the Treasury only through an appropriation made by law and upon a Controller’s warrant.

Article XVI, Section 8: Prop 98 School Funding Priority

Provides a minimum funding guarantee for school districts, and college districts, community college districts, and other state agencies that provide direct elementary and secondary instructional programs for kindergarten through grade 14 (K-14).

NOTE: Other constitutional provisions have budgetary implications but are more program specific than these.

(FO/PPBA)(September 26, 1997)