Georgia Constitution Practice Exam

What does Article III, Section IX state about the general appropriations bill in relation to expected revenue?

1. Expenditures may exceed past fiscal year revenues.

2. Expenditures may not exceed anticipated revenues for the upcoming year plus current surpluses.

3. Expenditures are unrestricted by revenue expectations.

4. Expenditures must match last year's revenue exactly.

The correct answer is: Expenditures may not exceed anticipated revenues for the upcoming year plus current surpluses.

Article III, Section IX of the Georgia Constitution specifically addresses the financial management of the state, particularly regarding the general appropriations bill. It establishes the principle that expenditures by the state must be balanced with its anticipated revenues. This section ensures fiscal responsibility by stipulating that expenditures cannot exceed the expected revenues for the upcoming fiscal year, in addition to any current surpluses. This requirement serves to maintain a budgetary discipline that helps prevent the state from incurring deficits, which could lead to financial instability. By grounding appropriations in expected revenue, it ensures that the state is planning based on realistic financial projections, ultimately promoting efficient and sustainable budgeting practices. The other options reflect misunderstandings of this principle. For instance, allowing expenditures to exceed past fiscal year revenues or to be unrestricted by revenue expectations would lead to potential deficits and financial mismanagement. Similarly, requiring that expenditures match the previous year's revenue exactly does not take into account dynamic changes in revenue and needs, thereby undermining the flexibility necessary for effective fiscal planning.