Proposes a constitutional amendment to impose an appropriation spending limitation and to establish the "Tax Reform Fund" to be used to fund budgetary shortfalls, subject to an appropriation limitation, and allows for certain taxation changes based on revenue triggers, by general law
Impact
The proposed amendments would significantly impact the fiscal policy of the state. By linking government spending to the state's population growth rate, the General Assembly's ability to appropriate funds would be constrained, ensuring expenditures do not exceed an established revenue limit. If passed, the legislation would mandate that surplus revenues exceeding $20 million be deposited into the Tax Reform Fund, which would be utilized for tax reductions and to cover budgetary shortfalls. This could potentially alter how fiscal planning and spending are approached in Missouri, fostering a more conservative financial environment.
Summary
HJR187 is a proposed constitutional amendment in Missouri that seeks to establish a framework for managing state spending and revenue collection. The resolution aims to repeal Section 20 of Article X of the Missouri Constitution and introduce new provisions that would impose strict limits on state government spending based on population growth. Additionally, it proposes the creation of a 'Tax Reform Fund' designed to manage surplus revenues and facilitate gradual reductions in personal income and property taxes.
Contention
Debate surrounding HJR187 centers on its implications for fiscal stability and tax policy in Missouri. Supporters argue that capping spending in relation to population growth will prevent overspending and promote responsible fiscal management. However, opponents raise concerns that such strict limits could undermine the state's ability to respond to economic crises or unforeseen expenditures, especially in times of emergency. The potential long-term effects on public services and infrastructure funding are also points of contention, as critics fear diminished state revenue could lead to cuts in essential services.
Further_details
The introduction of the Tax Reform Fund is another critical aspect of the bill. It aims to accumulate funds to address budgetary shortfalls while simultaneously working towards the reduction of personal income and property taxes. The administrative mechanisms for implementing tax reductions are outlined, with automatic triggers based on revenue performance during fiscal years. This proactive approach towards tax management is expected to draw both fiscal conservatives and those advocating for tax reduction policies into the broader discussion surrounding state governance and budget priorities.
Authorizes the Tax Reform Fund for certain revenue surpluses and implements personal income tax and sales and use tax triggers based on certain funding and revenue surpluses being met