Connecticut House Bill HB05401

Connecticut 2017 Regular Session

• Introduced: 1/11/17
• Refer: 1/11/17

Caption

An Act Concerning Terms Pertaining To The Constitutional Spending Cap.

Impact

If passed, HB 5401 would impose a framework on how general budget expenditures could increase, tying them to either personal income growth or inflation rates over a five-year period. This could significantly impact how the state allocates funds and plans its budgets, thereby potentially limiting expenditure growth during times of low income growth or high inflation. The bill's proponents argue that this structured approach would lead to more responsible fiscal practices and prevent overspending.

Summary

House Bill 5401 seeks to amend section 2-33a of the general statutes to establish clearer definitions concerning the state's constitutional spending cap. The bill defines key terms such as 'increase in personal income' and 'increase in inflation' while also detailing what constitutes 'general budget expenditures.' By providing concrete metrics like the compound annual growth rate of personal income and the consumer price index, the bill aims to ensure fiscal responsibility in the state's budget planning.

Contention

Discussion around HB 5401 may arise concerning the implications of linking expenditure increases to economic indicators. Critics could argue that such rigid constraints may hinder the state's ability to respond effectively to unforeseen economic challenges or needs for increased social spending. Furthermore, concerns about how these definitions might affect specific government programs and state-funded services could also emerge, as some advocates for social welfare may feel that the bill could restrict opportunities for expanding necessary programs.