Bill > ACR91

Introduced Session

This concurrent resolution proposes a constitutional amendment that prohibits the State from using borrowed funds to balance the State budget. It prohibits proceeds from the sale of bonds from being used as revenue to pay for State budget appropriations, except for new capital projects not previously enacted. It also prohibits bonds from being sold to fund any project previously paid for in an annual State budget or through any previous appropriation supplementing the State budget. The balanced budget provision of the State Constitution has been severely weakened if not effectively repealed by the use of long-term bonded indebtedness to produce enormous short-term revenue sources to balance current, single-year State spending. In Fiscal Years 2003 and 2004 the State caused various State authorities to issue bonds totaling more than $3.5 billion and to turn over virtually all of the funds to the State as revenue to support the ordinary operating expenses of the State government. The Governor's budget recommendations for Fiscal Year 2005 again propose that $1.5 billion of bonds be sold by an authority and that virtually all of the funds be turned over to the State as revenue to pay for ordinary operating expenses. The result of this proposed action would be to effectively borrow to pay operating costs and enact a budget that is not balanced in any meaningful sense. This proposed constitutional amendment will end the practice of the State's borrowing to meet ordinary operating expenses and reestablish a balanced budget requirement.

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Erik Peterson (R)*,  Paul Kanitra (R), 

Introduced, Referred to Assembly State and Local Government Committee (on 01/13/2026)

Official Document