Minnesota Senate Bill SF1836

Minnesota 2023-2024 Regular Session

• Introduced: 2/20/23
• Refer: 2/20/23

Caption

Constitutional amendment proposal to limit general fund expenditures to 5-1/3 percent of state personal income

Impact

The implementation of SF1836 would significantly alter state budgeting practices by imposing stringent limits on how much can be spent from the general fund annually. This limitation would necessitate a careful review of the state's spending priorities and could lead to cuts in various programs if revenue projections do not align. By creating a system that requires the legislature to remain within tight spending constraints, the bill aims to improve accountability and discipline in managing taxpayer dollars, while potentially reducing the size of future government operations.

Summary

SF1836 proposes an amendment to the Minnesota Constitution that seeks to limit general fund expenditures to not exceed 5-1/3 percent of the state's forecasted personal income for any given fiscal year. This amendment aims to increase fiscal responsibility within the state government by tying expenditure limits to personal income forecasts, thereby promoting a more sustainable budgetary practice. One-time expenditures are explicitly excluded from this limitation, allowing for some flexibility in managing state funds during exceptional circumstances.

Contention

Despite the intent behind SF1836, the proposal may generate notable contention among legislators and various stakeholders. Proponents argue that the amendment is critical for ensuring responsible governance and preventing unchecked government growth, asserting that it will help the state live within its means. However, opponents raise concerns that such rigid limitations may hinder the state's ability to address emerging needs, especially during economic downturns, thus affecting funding for essential services like education and public safety. There are concerns that the amendment may disproportionately impact local governments which rely on state funding to deliver key services to their communities.