Bill > SCR117

This Concurrent Resolution proposes a constitutional amendment to establish a 2 percent cap on annual increases for certain State government spending, meaning that for each fiscal year after the amendment is approved by voters, the total amount of money appropriated by the State cannot exceed the previous year's total by more than 2 percent. This limit, however, does not apply to several categories of spending, including State aid to schools, municipalities, and counties; federal funds received by the State; payments to pension systems required by the Constitution; State capital construction projects; debt service on voter-approved bonds and certain other State-backed debt; appropriations for emergencies like war, invasion, insurrection, or natural disasters (excluding routine operational costs); and money from the Property Tax Relief Fund. The amendment also allows for unused appropriation limits from the previous three years to be "banked" for future use and unspent appropriations from the prior year to be reappropriated without counting against the new limit, and it permits exceeding the cap only if a bill is passed by a two-thirds vote in both houses of the Legislature as a fiscal emergency measure.