Bill > ACR193

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, the total amount of appropriations enacted cannot exceed the previous year's appropriations by more than 2.0 percent. This limit, however, does not apply to several categories of spending, including State aid to local governments, federal funds, payments to pension systems mandated by the Constitution, State capital construction projects, debt service on voter-approved bonds and certain other pledged debts, appropriations for emergencies like war 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 carried over and reappropriated, and unexpended appropriations from the prior year can be reappropriated without counting towards the new limit. Furthermore, the Legislature can exceed this cap only if a bill proposing such an excess appropriation is passed as a fiscal emergency measure with a two-thirds vote in both houses.