(Constitutional Amendment) Limits the amount of money that may be appropriated in a fiscal year (Item #14) (EG SEE FISC NOTE GF EX)
If enacted, HB 14 will modify existing provisions regarding the determination of expenditure limits for the state general fund and dedicated fund appropriations. It mandates that the Revenue Estimating Conference adopt a growth limit that will affect how much money can be appropriated for state expenses. Each year, this growth limit will be calculated based on previous appropriations with a specified allowable increase, ensuring that state spending remains within the confines of growth in revenue, thus fostering a balanced budget approach.
House Bill 14 proposes a constitutional amendment aimed at establishing a Government Growth Limit that would restrict the growth in state appropriations from recurring revenues for each fiscal year, starting in 2026-2027. The key objective of this bill is to limit the amount of money that can be appropriated by the legislature, ensuring that expenditures do not exceed certain limits. This measure seeks to enhance fiscal responsibility and promote sustainable budgeting practices within the state government, aligning planned expenditures with revenue growth and avoiding overspending.
The sentiment surrounding HB 14 appears to be mixed. Proponents argue that implementing such limits is a necessary measure to secure a more prudent fiscal strategy, thereby safeguarding against potential budget deficits in the future. They believe that stricter controls on appropriations could lead to better management of state funds and to greater transparency in financial operations. However, critics might contend that the limitation of funds could impede necessary state programs and public services, arguing that such constraints could create financial barriers to addressing urgent state needs.
Notable points of contention regarding HB 14 lie in the implications it carries for future budgetary flexibility. While supporters emphasize the importance of maintaining fiscal discipline, opponents warn that the proposed growth limits could restrict the state's ability to respond to unforeseen circumstances or crises requiring additional funding. The debates likely reflect deeper ideological divides about the balance between fiscal conservatism and the role of government in addressing public welfare needs.