85(1) - 2017
Relating to the constitutional limit on the rate of growth of appropriations.
No fiscal implication to the State is anticipated in the upcoming biennium. The provisions of
the bill would take effect with the 2020-21 biennium.
Starting in the 2020-21 biennium, the fiscal implication of restricting the biennial growth of
appropriations from state tax revenues not dedicated by the Constitution to the growth of
compounded population and inflation,and also of establishing a new statutory limit restricting
the biennial growth of consolidated general revenue appropriations (General Revenue and
General Revenue-Dedicated), would depend on both the actions of the Legislative Budget Board
with respect to adopting the rate and future appropriation decisions by the legislature.
SB 9 would stipulate that the rate of growth of consolidated general revenue appropriations in a fiscal biennium may not exceed the estimated rate of growth of the state's economy as calculated by the average population growth during the preceding biennium multiplied by the average biennial rate of inflation.
Vote Recommendation Notes
This bill would more accurately calculate the state's economic growth and consequently do a better job of restraining the rate of growth of state appropriations. This would limit the cost of government to the benefit of taxpayers who foot the bill. For this reason we support SB 9.