This measure retains the existing appropriations limits, but adds a new limit on the annual growth in state expenditures. The measure eliminates the operation of Test 3 and maintenance factors; provides that future overappropriations may be counted as one-time funding, which would not raise the base upon which future Proposition 98 calculations are made; requires the payment of settle-up obligations for years prior to 2004-05 to be paid within 15 years; converts the 2005-06 outstanding maintenance factor to a one-time obligation that is required to be paid within 15 years. The measure also makes changes to the budget process relating to late budgets, midyear adjustments, and reporting requirements; and prohibits the suspension of Proposition 42 transfers after 2006-07.