| The total General Fund appropriation for each fiscal year of |
| the biennium, other than transfers of unallocated surplus or |
| expenditures constituting direct payments to taxpayers to reduce |
| their tax liability, may not exceed the General Fund |
| appropriation of the previous fiscal year multiplied by a growth |
| factor.__For purposes of this paragraph, the growth factor |
| applicable to fiscal years following the effective date of this |
| paragraph is the base growth factor, defined as the following |
| sum: one plus the average real personal income growth rate, as |
| defined in section 1665, subsection 1, which rate may not exceed |
| 2.75%.__For fiscal years commencing after such time as the state |
| tax burden ranks in the middle 1/3 of all states, the growth |
| factor must become the personal income growth factor.__The |
| personal income growth factor is one plus the average percent |
| change in personal income in this State for the prior 10 calendar |
| years, ending with the most recent calendar year for which data |
| are available, as estimated by the United States Department of |
| Commerce, Bureau of Economic Analysis.__For purposes of this |
| section, "state tax burden" means the total amount of state and |
| local taxes collected during the calendar year concluding on the |
| preceding December 31st, as calculated by the State Tax Assessor, |
| divided by the total personal income of all residents of the |
| State during that same calendar year as calculated by the Bureau |
| of Economic Analysis.__The State Tax Assessor shall undertake |
| this calculation no less often than once per year.__For any |
| fiscal year thereafter, if the State Tax Assessor determines that |
| the state tax burden has increased to the highest 1/3 of all |
| states, the growth factor for the following fiscal year must be |
| the base growth factor.__In all other fiscal years when the state |
| tax burden ranks in the middle 1/3 of all states, the growth |
| factor must be the personal income growth factor.__The |
| appropriation limitation set forth in this paragraph may be |
| exceeded only in an amount necessary to comply with a court order |
| or decree or to pay costs associated with extraordinary events |
| outside the control of the Governor or Legislature, such as |
| natural disasters, severe weather events, acts of God, acts of |
| terrorism, fire, war and riots, but in no event may such events |
| include changes in economic conditions, revenue shortfalls or |
| increases in salaries or benefits; however, for purposes of |
| calculating total General Fund appropriations for any future |
| fiscal year, any appropriations made pursuant to this sentence |
