General fund expenditures limited to 5-1/3 percent of state personal income, and constitutional amendment proposed.
Impact
Should HF2224 be adopted, it would ensure that state legislators cannot exceed the expenditure cap without adhering to specific conditions. One-time expenditures are exempt from this limit, which allows for some flexibility in budgeting. However, if costs are reassigned between levels of government—in cases where local governments transfer responsibilities to the state or vice versa—legislators have the authority to adjust the expenditure limit in a manner that accounts for these changes. This amendment aims to create a more predictable fiscal environment while preserving a degree of responsiveness to local needs.
Summary
HF2224 is a legislative proposal aimed at amending the Minnesota Constitution to impose a restriction on general fund expenditures. Specifically, it seeks to limit these expenditures to 5-1/3 percent of the forecasted state personal income for each fiscal year. The bill is positioned as a safeguard for fiscal discipline, aiming to ensure that government spending does not outpace revenue growth, thereby promoting a balanced budget environment within the state government.
Contention
The proposal introduces potential points of contention related to how fiscal limits might impact state-funded programs. Critics may argue that stringent expenditure limits could hinder the state's ability to fund essential services, especially in unforeseen circumstances such as natural disasters or economic downturns that require increased spending. Proponents, however, contend that the cap encourages responsible budgeting and prevents overspending that could lead to financial instability. The tension between fiscal discipline and the necessity for responsive government spending creates a complex debate surrounding the bill.
Submission
If passed through the legislative process, the proposed amendment to the Constitution will be presented to Minnesota voters during the 2024 general election. This aspect of the bill signifies direct democratic involvement, enabling the electorate to decide on the future of the state's fiscal policy.
Constitutional amendment to authorize limited redirection and transfer of funds supporting appropriations and allocations from the state general fund and dedicated funds in certain circumstances. (2/3 CA13s1(A)) (OR SEE FISC NOTE GF EX)
Constitutional amendment to repeal certain constitutionally dedicated and protected allocations and funds. (2/3-CA13s1(A)) (OR INCREASE GF RV See Note)
Constitutional amendment to authorize limited redirection and transfer of funds supporting appropriations and allocations from the state general fund and dedicated funds in certain circumstances. (2/3-CA13s1(A))