(1) (a) Beginning in the fiscal year following ratification, the state, a school district, or a local governmental unit may not spend in any fiscal year more than the amount it spent in the previous fiscal year, less any amount under subs. (2) and (3) and any amount transferred to a fund from which excluded expenditures are made, increased by the percentage of the average of any increase from the previous 3 fiscal years in the consumer price index for Milwaukee−Racine, or its successor, not to exceed state personal income growth plus:
For the state, the percentage of any increase in state population, adjusted by the decennial census and corrected over a 3−year period.
For school districts in the aggregate, the percentage of any increase from the previous year in student enrollment.
For a local governmental unit, the percentage of any increase from the previous year in property values attributable to new construction.
(b) Notwithstanding par. (a), the state, a school district, or a local governmental unit may adopt the amount it spent in the previous fiscal year as its current fiscal year spending limit under this section.
(2) The legislature may, by law, exclude any expenditure from the stateís limit under this section other than for expenditures funded from taxes, fees, tuition, or charges for services that are deposited into the general fund, transportation fund, conservation fund, environmental fund, recycling fund, public benefits fund, or universal service fund.
(3) The stateís limit under this section shall be reduced by the amount of any reduction in state aids to other governmental units.
(4) If a governmental unitís revenue in any fiscal year exceeds its limit under this section for that year, the governmental unit shall deposit the excess revenue into a separate fund, except that the total amount of the fund may not exceed an amount equal to 15 percent of its spending in that year. Notwithstanding subs. (2) and (6), the governmental unit may make expenditures from the fund in any fiscal year to reduce taxes or fees, to spend in any fiscal year in which the limit exceeds revenues, or, by a two−thirds vote of the governmental unitís governing body, to pay the costs of an emergency unrelated to economic conditions. Emergency expenditures and expenditures to reduce taxes or fees made under this subsection are excluded from the limit under sub. (1).
(5) The legislature may, by law, adjust the limit under this section to accommodate the transfer of services from any governmental unit to another, including the transfer of services that results from annexation.
(6) A governmental unit that is authorized to impose a tax or fee may not do any of the following without the approval of the electorate at a referendum:
(a) Increase net taxes.
(b) Issue new bonds, except for self−funding economic development bonds and
bonds for which the debt service may be paid within the limit under this section.
© Spend more than the limit under this section.
(7) In furtherance of sub. (6), the legislature, by law, shall provide for dates for
which referenda may be held, including a date in the fall of each odd−numbered year.
(8) A local governmental unit may exempt itself from any new mandate
imposed by the state that is not fully funded by the state or from any mandate for
which the state reduces the percentage of the costs the state pays for the mandate.