State Expenditures, Revenue.

STATE EXPENDITURES, REVENUE. INITIATIVE CONSTITUTIONAL AMENDMENT. Requires Governor to issue audited quarterly financial reports estimating state expenditures, revenue, and other information. When forecast expenditures exceed forecast revenues, requires Governor to declare fiscal emergency and order proportional reduction of state expenditures, including entitlements, to match revenues (except specified expenditures for education, state debt service, property tax exemption, local government subvention). In fiscal year of emergency, Governor, state legislators and agency heads forfeit salary, expenses proportionate to twice percentage that expenditures exceed revenue in fiscal year and forfeit salary and expense increases in following fiscal year. Prohibits retroactive payment of forfeited amounts. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Would impose additional state costs, that could exceed $20 million annually, to provide quarterly audited financial statements for the state. Could result in potential state savings of up to hundreds of millions or billions of dollars in any year in which a declaration of fiscal emergency mandated spending reductions. Could be potential savings of $1 million or more from the forfeiture of pay and expenses for state officials, if state spending exceeds state revenues for any year