Places limitations on state spending
The implementation of SJR86 would significantly alter budgeting practices within the state. By instituting an appropriations growth limit, this resolution intends to keep state expenditures in line with economic realities, preventing overreaching budget increases. However, the bill includes provisions for exemptions, allowing state revenues from new taxes or fees, along with those that have received public voter approval, to be exempt from these limits. Furthermore, if revenues exceed appropriations by a specified percentage, the surplus would be returned to taxpayers, promoting fiscal responsibility and transparency.
SJR86, or the Joint Resolution concerning state spending, proposes an amendment to the Missouri Constitution that establishes a formula to limit state general revenue appropriations based on inflation and population growth. Specifically, the bill states that total state appropriations for the fiscal year cannot exceed the prior year's appropriations by more than the greater of zero, the percentage rate of inflation, and the annual population growth rate. This framework aims to ensure state budget constraints while considering economic factors.
Discussions surrounding SJR86 may invoke varying opinions regarding fiscal policy, particularly concerning the impact on state services. Proponents assert that limiting state spending is crucial for maintaining a balanced budget and ensuring that financial growth does not outpace taxpayer capacity. Critics, however, may express concerns that such limits could hinder essential public services and infrastructure investment, especially during economic downturns or emergencies when increased funding may be necessary. The resolution’s stipulation that appropriations can exceed limits only through an emergency declaration by the governor, backed by a two-thirds vote of the legislature, introduces further debate on responsiveness during crises.