Establishes the "Show-Me Prosperity Fund"

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Official Summary Text

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Perfected

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SS/SCS/SJR 95 - This constitutional amendment, if approved by voters, establishes the "Show-Me Prosperity Fund", which is established as a permanent public endowment to provide long-term fiscal stability with the goal of eliminating state-imposed taxes without impairing the real value of the fund's principal. The fund shall consist of money appropriated to it by the General Assembly, and may also receive gifts, donations, grants, and bequests from any source.

The State Treasurer shall invest the fund in exchange-traded funds tracking the stock performance of the Standard and Poor's 500 a manner consistent with fiduciary standards applicable to public trust funds. No money shall be appropriated from the fund until the notification is given by the State Treasurer that the net investment earnings of the fund, as defined in the amendment, are sufficient to eliminate state-imposed taxes, at which time net investment earnings from the fund shall be used to eliminate state taxes as provided in the amendment. The total amount of moneys that may be appropriated from the fund in a fiscal year shall not exceed three percent of the average market value of the fund over the preceding five fiscal years.

Upon the elimination of all state-imposed taxes, no such taxes shall thereafter be enacted, provided, however, that in the event the fund is unable to meet its obligations due to insolvency, revenue shortfall, or program failure, the General Assembly shall retain full authority to appropriate funds from any lawful source and to enact legislation establishing or increasing taxes or other revenues as necessary to ensure continuity of state programs and fulfillment of state expenditures that were anticipated to be supported by the fund.

Upon the elimination of all state-imposed taxes, the General Assembly may appropriate net investment earnings from the fund for the purpose of replacing federal moneys received by the state, for issuing dividend payments to residents of the state, or both.

The principal of the fund shall not be appropriated, pledged, or borrowed against. The State Auditor shall conduct an audit of the fund to ensure compliance with the provisions of the amendment at such times that the Auditor deems necessary, but no less than once every three fiscal years.
JOSHUA NORBERG

Senate Substitute

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SS/SCS/SJR 95 - This constitutional amendment, if approved by voters, establishes the "Show-Me Prosperity Fund", which is established as a permanent public endowment to provide long-term fiscal stability with the goal of eliminating state-imposed taxes without impairing the real value of the fund's principal. The fund shall consist of money appropriated to it by the General Assembly, and may also receive gifts, donations, grants, and bequests from any source.

The State Treasurer shall invest the fund in exchange-traded funds tracking the stock performance of the Standard and Poor's 500 a manner consistent with fiduciary standards applicable to public trust funds. No money shall be appropriated from the fund until the notification is given by the State Treasurer that the net investment earnings of the fund, as defined in the amendment, are sufficient to eliminate state-imposed taxes, at which time net investment earnings from the fund shall be used to eliminate state taxes as provided in the amendment. The total amount of moneys that may be appropriated from the fund in a fiscal year shall not exceed three percent of the average market value of the fund over the preceding five fiscal years.

Upon the elimination of all state-imposed taxes, no such taxes shall thereafter be enacted, provided, however, that in the event the fund is unable to meet its obligations due to insolvency, revenue shortfall, or program failure, the General Assembly shall retain full authority to appropriate funds from any lawful source and to enact legislation establishing or increasing taxes or other revenues as necessary to ensure continuity of state programs and fulfillment of state expenditures that were anticipated to be supported by the fund.

Upon the elimination of all state-imposed taxes, the General Assembly may appropriate net investment earnings from the fund for the purpose of replacing federal moneys received by the state, for issuing dividend payments to residents of the state, or both.

The principal of the fund shall not be appropriated, pledged, or borrowed against. The State Auditor shall conduct an audit of the fund to ensure compliance with the provisions of the amendment at such times that the Auditor deems necessary, but no less than once every three fiscal years.
JOSHUA NORBERG

Senate Committee Substitute

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SCS/SJR 95 - This constitutional amendment, if approved by voters, establishes the "Show-Me Prosperity Fund", which is established as a permanent public endowment to provide long-term fiscal stability with the goal of eliminating state-imposed taxes without impairing the real value of the fund's principal. The fund shall consist of money appropriated to it by the General Assembly, and may also receive gifts, donations, grants, and bequests from any source.

The State Treasurer shall invest the fund under a total-return strategy, considering income, capital appreciation, and long-term purchasing power, consistent with fiduciary standards applicable to public trust funds. No money shall be appropriated from the fund until the notification is given by the State Treasurer that the net investment earnings of the fund, as defined in the amendment, are sufficient to eliminate state-imposed taxes, at which time net investment earnings from the fund shall be used to eliminate state taxes as provided in the amendment. The total amount of moneys that may be appropriated from the fund in a fiscal year shall not exceed two percent of the average market value of the fund over the preceding five fiscal years.

Upon the elimination of all state-imposed taxes, no such taxes shall thereafter be enacted, provided, however, that in the event the fund is unable to meet its obligations due to insolvency, revenue shortfall, or program failure, the General Assembly shall retain full authority to appropriate funds from any lawful source and to enact legislation establishing or increasing taxes or other revenues as necessary to ensure continuity of state programs and fulfillment of state expenditures that were anticipated to be supported by the fund.

Upon the elimination of all state-imposed taxes, the General Assembly may appropriate net investment earnings from the fund for the purpose of replacing federal moneys received by the state, for issuing dividend payments to residents of the state, or both.

The principal of the fund shall not be appropriated, pledged, borrowed against, or otherwise encumbered for any purposes other than as provided in the amendment. The State Auditor shall conduct an audit of the fund to ensure compliance with the provisions of the amendment at such times that the Auditor deems necessary, but no less than once every three fiscal years.
JOSH NORBERG

Introduced

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SJR 95 - This constitutional amendment, if approved by voters, establishes the "Show-Me Prosperity Fund" for the purpose of eliminating state taxes and securing this state's long-term financial independence. The fund shall consist of money appropriated to it by the General Assembly, and may also receive gifts, donations, grants, and bequests from any source.

The State Treasurer shall invest the fund in exchange-traded funds tracking the performance of the Standard & Poor's 500, or a comparable successor index to be determined by law. No money shall be appropriated from the fund until January 1, 2127, until the fund reaches $2 trillion, or until the State Treasurer notifies the General Assembly that the balance in the fund is sufficient to eliminate state taxes, whichever occurs first, at which time the fund shall be invested in the manner specified in the Constitution for other funds, with preference given to certain investments bearing at least 3% interest annually, and the interest from the fund shall be used to eliminate or reduce state taxes as provided in the amendment.

The State Treasurer may reinvest a portion of the annual interest generated by the fund once all state-imposed taxes have been eliminated. Upon the elimination or reduction of any tax as provided in the amendment, no such tax shall thereafter be enacted or be increased beyond the rate as reduced pursuant to the amendment.
JOSH NORBERG