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The amendment adds
property tax relief as the first pupose of the bill. Based on currently budgeted revenue, no
transfers of General Fund revenue in excess of the appropriation limitation
are expected through the end of fiscal year 2014-15. If actual revenue in these or later fiscal
years exceeds budgeted revenue, leaving an excess for year-end distribution
to the Fund, the balance, when sufficient, would be used for the folowing
initiatives (in order): fully fund the Circuitbreaker Program, restore
revenue sharing to 5%, fund General Purpose Assistance at 55%, and then to
replace the revenues that would be lost by reducing individual income tax
rates. The amount of rate reduction that would occur in any tax year is to be
determined solely by reference to the balance of the Fund and the revenue
that would be lost by any rate reduction effective for the following tax
year. Since the funding for the rate reduction is non-recurring and the rate
reductions permanent, it is possible that the bill could result in
significantly reduced revenues for all years following the implementation of
a tax rate reduction. |