Missouri Senate Bill SJR21

Missouri 2025 Regular Session

• Introduced: 1/8/25
• Refer: 2/6/25

Caption

Modifies provisions relating to the use of state revenues

Impact

The implementation of SJR21 would fundamentally alter the existing fiscal framework of the state. Most notably, it seeks to create a direct connection between state population growth and appropriations, allowing for variable spending limits. For instance, if the state’s population increases, the General Assembly's appropriation capacity corresponds directly to that growth, with a specified formula in place. This could lead to significant shifts in funding for public education, health, and welfare services, among others. The resolution also necessitates the establishment of rules governing how tax reductions might occur in relation to state surpluses.

Summary

SJR21 proposes an amendment to the Missouri Constitution that aims to modify how state revenues are collected and appropriated by repealing Section 36 of Article III. This resolution introduces two new sections concerning the management of state funds, establishing a 'Tax Reform Fund' that will utilize excess state revenue to gradually eliminate both personal and corporate income taxes. Additionally, it places a cap on the appropriation authority of the General Assembly, restricting its ability to divert revenue except as permitted by law and in accordance with a specified order of priorities for funding.

Contention

Debate surrounding SJR21 has been characterized by concerns over potential risks associated with eliminating income taxes. Proponents argue that decreasing tax burdens could stimulate economic growth and job creation by incentivizing investment. Conversely, detractors raise alarm about how the resolution may lead to underfunding of critical public services, especially if economic conditions fluctuate and planned surpluses do not materialize. The notion of spending limits imposed upon the General Assembly has also raised eyebrows, as it could constrain legislators' ability to respond to emergent fiscal needs, particularly during economic downturns or unforeseen events requiring immediate budgetary adjustments.