SB1223 - Pension Funding and Fairness Act

• Establishes a Spending Growth Index limiting annual State spending increases to inflation adjustment factor plus population adjustment factor, calculated separately for General Fund, Road Fund, and all other funds.

• Requires three-fifths supermajority legislative vote plus majority voter approval to exceed spending limits or increase State revenue; voter approval not required for revenue increases tied to bond payments, pension obligations, or court judgments.

• Creates three special funds: Past Due Paydown Fund to eliminate operating debt, State Budget Stabilization Fund (capped at 8% of General Fund revenues), and Taxpayer Relief Fund (requiring tax refunds if exceeding 1% of General Fund expenditures).

• Mandates full annual pension payment as the General Assembly's first appropriation each fiscal year beginning in FY2014, with monthly pro rata payments by the 5th of each month; failure to pay triggers suspension of all other State payments.

• Allows emergency taxes approved by three-fifths legislative vote to address extraordinary circumstances, but requires voter approval at next election and mandates refund of unspent revenue within 180 days of emergency end.