In the most recent post we discussed
how the Assembly passes laws. There is a mild exception to this, and
that is the budget. There a specific rules about the budget that must
be followed;
1) The budget is (almost) the first
thing the Assembly does each year (after an election the first step
is to elect a First Senator – then the budget).
2) The budget is for the following
year, not the current year.
3) The budget can only be based on
money already in the Treasury – no debt, no loans, no estimates of
future income. If the money isn't already in the Treasury, it can't
be in the budget.
4) The budget cannot create a
deficit.
5) If the Kingdom has an existing
debt (from an emergency or other non-standard event) the budget must
reduce the principal each year.
6) The budget can include reasonable
fees, but cannot include items that would require nobles or citizens
to fund them; i.e, an annual fee for a vehicle operator's license is
OK, a requirement that each baron maintain a specific computer system
without allocating funds is not.
7) Any budget item that lasts for
more than 1 year requires a separate vote and requires a 2/3 majority
to pass.
8) No budget item can last more than
6 years.
9) Pay for Senators is a separate
item (if Senators are paid) and any changes don't take force until
after the next election.
10) Until a valid budget is passed
the Assembly does no other business.
The process of passing a budget:
1) The King submits his budget to the
First Senator as the first proposal of the first conclave.
2) Unless 2/3 of Senators vote
against the King's budget, it is passed and sent to the
Council
3) Unless 2/3 of the members of the
Council vote against the King's budget, it is passed
and goes into effect.
4) If the King's budget is rejected
the King or any Senator may propose alternate budgets.
Note: in an exception, even the
King's budget proposal are introduced into the Senate, never the
Council.
5) These proposed budgets only need a
simple majority approval to be sent to the Council and a simple
majority to be approved by the Council.
6) If either the Council or the King
rejects two proposed budgets a Special Assembly is held where all
Senators and all members of the Council meet as a single body.
A) The combined Assembly has one
week to propose and approve (by simple majority of the total
Assembly) a budget, If the king rejects the proposed budget or they
fail to meet the deadline they meet for an additional week.
B) If a 4th budget is rejected by
the King or the second deadline is missed the King dissolves the
Assembly and elections for new senators are held as soon as possible.
Taxes:
Once the budget for the upcoming year
is finalized the tax schedule for that same year as the budget is
developed by the Minister of Finance (consulting with the King and
the Minister of State). The Finance Minister has one month from the
final budget approval to get the proposed tax schedule tot he King;
the King has until the Grand Conclave to announce the final tax
schedule.
The Result:
While a balanced budget is not a
requirement (the budget could expend less money than exists in the
Treasury, after all) it does prevent deficit spending or the
accumulation of government debt.
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