Nebraska Legislature Bill LR21CA

Nebraska 2024 1st Special Session

• Introduced: 7/29/24
• Refer: 7/30/24
• Failed: 8/20/24

Caption

Constitutional amendment to prohibit political subdivisions from increasing fiscal year spending beyond a limit based on inflation and population change unless approved by voters at a general election

Impact

If passed, LR21CA would significantly impact how local governments manage their budgets and fiscal policies. By requiring voter approval for any spending that goes beyond the established limits tied to inflation and population, it would empower citizens to have a more direct say in local financial decisions. Proponents argue that this will encourage disciplined budgetary practices and ensure that spending increases correspond to actual growth in population and living costs, making government more responsive to the economic realities faced by its constituents.

Summary

LR21CA seeks to amend the state constitution by instituting a cap on the fiscal year spending of political subdivisions, which includes local governments and municipalities. The proposed amendment states that such spending cannot exceed a limit that is adjusted according to inflation and population change, unless a majority of voters approve any proposed increase during a general election. This amendment is intended to address concerns about government overspending and to promote fiscal accountability in local governance.

Contention

However, there are notable points of contention surrounding the bill. Critics assert that imposing such restrictions could hinder the ability of local governments to invest in necessary services and infrastructure, particularly in times of economic crisis or unexpected events. They argue that this could lead to a deterioration of public services, including education and healthcare, as localities may struggle to secure the funding needed to address community demands. There are concerns that it could disproportionately affect urban areas with rapidly growing populations, which may need more flexible budgeting options to adapt to changing circumstances.