new text begin Sec. 16. new text end

new text begin The legislature must not cause total general fund expenditures for a fiscal year
to exceed 5-1/3 percent of forecasted state personal income for the fiscal year. Onetime
general fund expenditures are not included in the expenditure limit.
new text end

new text begin To accommodate the transfer of governmental functions between the federal and state
governments or the state and local units of government without contravening the intent of
the expenditure limit, the legislature must specify any adjustment to the expenditure limit
in law and the adjustment must be consistent with the following principles:
new text end

new text begin (1) if, by order of any court or by legislative enactment, the costs of a program or any
portion thereof are transferred from a local unit of government to the state, the legislature
may commensurately increase the expenditure limit provided the tax revenues of the affected
local unit of government are commensurately decreased;
new text end

new text begin (2) if, by order of any court or by legislative enactment, the costs of a program or any
portion thereof are transferred from the state to a local unit of government, the legislature
must commensurately decrease the appropriation limit and the tax revenues of the local unit
of government may be commensurately increased;
new text end

new text begin (3) if funds provided by the federal government in support of an existing program are
eliminated or significantly curtailed, the legislature may commensurately increase the
expenditure limit by the amount of the increased state costs incurred in administering the
program or any portion thereof pursuant to an order of any court or by legislative enactment;
and
new text end

new text begin (4) if the costs of a program are transferred from the state to the federal government, the
legislature must commensurately decrease the expenditure limit.
new text end