STATE AND LOCAL APPROPRIATIONS LIMIT. SCHOOL FUNDING. STATE MANDATES. BONDS. INITIATIVE CONSTITUTIONAL AMENDMENT.

STATE AND LOCAL APPROPRIATIONS LIMIT. SCHOOL FUNDING. STATE MANDATES. BONDS. INITIATNE CONSTITUTIONAL AMENDMENT. Eliminates local government appropriations limit. Amends state appropriations limit to apply to expenditures from all sources of money; eliminates exemptions. Adjusts next year spending if current year spending falls below appropriations limit. Permits spending increase during emergency. Repeals Proposition 98 revenue transfers above appropriations limit to community college and school districts for instructional improvements, accountability. Allocates General Fund revenue above appropriations limit to specific funds/purposes. Specifies requirements for state reimbursement of local government mandates. Restricts debt issuances and when General Obligation bonds can be voted on. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This measure would have the following major fiscal impacts: potentially major reduction in state spending in 2005-06; state spending restrained below current-law levels in future years, with reductions primarily in nonschool spending; reserve provisions may smooth-out state spending over time