State Constitutional Amendment to Oppose New State Taxes, Increased Spending, and Debt Without Voter Approval
| Model Bill Info | |
|---|---|
| Bill Title | State Constitutional Amendment to Oppose New State Taxes, Increased Spending, and Debt Without Voter Approval |
| Date Introduced | July 17, 2025 |
| Type | Model Policy |
| Status | Draft |
| Task Forces | Federalism, Homeland Security and International Relations |
State Constitutional Amendment to Oppose New State Taxes, Increased Spending, and Debt Without Voter Approval
WHEREAS, States through their respective constitutional amendment processes should adopt fiscal responsibility amendments that
(I) impose limits on the amount of money government can tax and spend,
(II) tie the growth of state revenue to a rate of population growth plus inflation, and
(III) require any increases above an established formula in spending and taxes are to be approved by a vote of the citizens.
WHEREAS, neither the State nor its political subdivisions should increase, in excess of a 4-year moving average of inflation up to 2.5% and the change in population
(i) total annual spending, including obligations of the treasury faster than the people’s increase in after tax income,
(ii) any new or increased tax, or
(iii) debt of the general treasury without voter approval.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF {insert state}:
Section 1. The following amendment to the Constitution of the State of {insert state} is proposed and agreed to by this, the {insert name of state legislature}, and is referred to the next Legislature for reconsideration and agreement.
Section 2. ARTICLE XX, SECTION XX OF THE CONSTITUTION OF THE STATE OF {INSERT STATE} IS AMENDED TO READ AS FOLLOWS:
Sec. __________ State and Local Government Spending and Growth Limits
State Fiscal Year Spending Growth Limits: “The state’s total fiscal year maximum annual percentage change in [STATE]’s fiscal year total spending are determined by the 4-year moving average rate of inflation up to 2.5%.:” (Source: U.S. Bureau of Labor Statistics Consumer Price Index) and the annual percentage change in state population during the prior calendar year.” (Source: U.S. Census Bureau Official Annual Population Estimates). Local District Fiscal Year Spending Growth Limit: “Each local taxing district’s maximum annual percentage change in fiscal year total spending limit shall be changed annually by the 4-year moving average rate of inflation up to 2.5% inflation plus the percentage change in the political subdivision’s population during the prior calendar year.” (Source: U.S. Census Bureau Official Annual Population Estimates). Excess Revenues: “Excess revenues over the annual revenue limit up to [TBD]% shall be deposited in an interest-bearing Rainy-Day Fund and only used to pay for expenses up to the Spending Limit. Excess revenues above the Rainy-Day Fund Cap shall be refunded or, upon voter approval, used to repay debt. No New Spending, Taxes, or Increases in General Government Debt Without Voter Approval: “Neither [STATE] nor its political subdivisions shall increase in excess of a 4-year moving average of inflation up to 2.5% and the percentage change in population ((i) total annual spending, including obligations of the treasury faster than the people’s increase in after tax income, (ii) any new or increased tax, or (iii) debt of the general treasury without approval of the voters or those in relevant in-state region or district.” Whistleblower Right to Jury Trial: “Any citizen of [STATE] is entitled to a jury trial within 12 months. If the jury finds [STATE]’s executive, judicial or legislative branches or its political subdivisions have violated the provisions of this Amendment, the Whistleblower shall be entitled to reasonable attorneys’ fees, court costs and an award not to exceed twenty times attorney’s fees and court costs.”