Did the Missouri AG approve the fiscal note for Winston Apple's 2019 statutory initiative on a $5 income-tax checkoff to publicly fund clean-money campaigns (file 20-099)?
Plain-English summary
Petition 2020-099 was Winston Apple's statutory initiative to create the Missouri Elections Trust Fund, financed by a voluntary $5 state income-tax checkoff, to provide matching public funds for candidates who decline corporate and corporate-PAC money. The full mechanics are described in the companion summary-statement opinion 167-2019.
Under § 116.175 RSMo, the State Auditor prepares a fiscal note explaining the petition's expected revenue and cost effects. The AG then reviews the fiscal note's "legal content and form" under § 116.175.4 RSMo. The AG approves form, not accuracy, of the auditor's numbers.
The fiscal note approved here projects state government will see up to $16.1 million per year in decreased general-revenue receipts by 2022 (because taxpayers redirect $5 of their tax payments to the Trust Fund) with a corresponding $16.1 million per year increase to the Trust Fund. Local governments would see no fiscal effect. AG Schmitt's letter approves the legal form of that fiscal note.
Currency note
This opinion was issued in 2019. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.
The exact fiscal-note summary the AG approved
State governmental entities anticipate decreased revenues in the General Revenue Fund of up to $16.1 million annually by 2022 and anticipate corresponding increased annual revenues in the Missouri Elections Trust Fund. Local governmental entities expect no costs or savings from this proposal.
Common questions
Q: Why does the General Revenue Fund lose money?
A: The petition's $5 checkoff diverts part of what each electing taxpayer already owes to a new dedicated fund instead of letting it flow into general revenue. The fiscal note treats that diversion as a revenue loss to GRF and a corresponding gain to the Trust Fund. Net effect on the taxpayer: zero (it is not a tax increase).
Q: How does the auditor estimate $16.1 million?
A: The number reflects an estimate of how many Missouri taxpayers would actually use the checkoff. The opinion does not show the model, but checkoff-utilization estimates typically draw on participation rates from existing checkoff programs (e.g., Missouri's Children's Trust Fund checkoff). The AG's review does not test that estimate.
Q: Why does the AG say the review does not examine "fairness or sufficiency"?
A: § 116.175.4 RSMo limits AG review to legal content and form. Whether the auditor's number is the right number is a separate question; voters and challengers can litigate it under § 116.190 RSMo. The AG check is a structural/legal check, not an audit of the audit.
Q: Did the petition reach the ballot?
A: The opinion does not say. Apple's August 2019 petitions do not appear to have advanced to the 2020 ballot.
Background and statutory framework
Chapter 116 RSMo lays out the initiative-petition pipeline. This opinion sits at step 3:
- Proponent files the petition with the Secretary of State.
- AG reviews sufficiency as to form under § 116.332 RSMo.
- State Auditor prepares a fiscal note; AG reviews under § 116.175.4 RSMo (this opinion).
- Secretary of State drafts a summary statement; AG reviews under § 116.334 RSMo.
- Petition certified for circulation.
Citations and references
Statutes: § 116.175 RSMo (the operative provision; subsections (1)-(3) on auditor's preparation, subsection (4) on AG review); § 116.190 RSMo (judicial challenges to fiscal note); § 116.332 RSMo (sufficiency-as-to-form pipeline step); § 116.334 RSMo (summary-statement pipeline step); Chapter 130 RSMo (campaign finance); Chapter 143 RSMo (Missouri income tax).
Companion opinion on the same petition (2020-099): 167-2019 (summary statement review).
Sister Apple August 2019 petitions: 164-2019 / 177-2019 / 180-2019 (petition 2020-101, ranked-choice voting); 165-2019 / 178-2019 / 181-2019 (petition 2020-102, proportional representation); 166-2019 / 179-2019 / 182-2019 (petition 2020-103, initiative protection).
Source
- Landing page: https://ago.mo.gov/other-resources/ag-opinions/
- Original PDF: https://ago.mo.gov/wp-content/uploads/attachments/159-2019.pdf?sfvrsn=2
Original opinion text
ATTORNEY GENERAL OF MISSOURI
ERIC SCHMITT
August 1, 2019
OPINION LETTER NO. 159-2019
The Honorable Nicole Galloway
Missouri State Auditor
State Capitol, Room 121
Jefferson City, MO 65101
Dear Auditor Galloway:
This office received your letter of July 22, 2019, submitting a fiscal note and
fiscal note summary prepared under § 116.175, RSMo, for an initiative
petition submitted by Winston Apple (20-099). The fiscal note summary that you
submitted is as follows:
State governmental entities anticipate decreased revenues
in the General Revenue Fund of up to $16.1 million
annually by 2022 and anticipate corresponding increased
annual revenues in the Missouri Elections Trust Fund.
Local governmental entities expect no costs or savings from
this proposal.
Under § 116.175.4, RSMo, we approve the legal content and form of
the fiscal note summary. Because our review of the fiscal note summary is mandated
by statute, no action that we take with respect to such review should
be construed as an endorsement of the initiative petition or as the expression
of any view regarding the objectives of its proponents. Furthermore, our review under
§ 116.175.4 does not examine the fairness or sufficiency of the estimated fiscal impact.
Very truly yours,
ERIC S. SCHMITT
Attorney General
Supreme Court Building
207 W. High Street
P.O. Box 899
Jefferson City, MO 65102
Phone: (573) 751-3321
Fax: (573) 751-0774
www.ago.mo.gov
OP-2019·0184