Rep. Long backs TABOR-style amendment to cap spending growth, require voter approval for tax increases

Representative Wayne Long introduced House Joint Resolution 1005, a proposed constitutional amendment modeled on Colorado’s Taxpayer Bill of Rights (TABOR). Long said the amendment would create a constitutional balanced-budget requirement, cap annual state spending growth at 3 percent or the consumer price index (whichever is lower), raise the legislative threshold to three-fourths to approve tax or fee increases, and require surplus revenue be refunded to taxpayers.

Long invited Lee Schalk, senior vice president of policy at the American Legislative Exchange Council (ALEC), to present research on TABOR’s effects in Colorado. Schalk described TABOR as limiting the state’s retained revenue to population and inflation growth and said it has led to refunds in Colorado; he and Long cited refunds and revenue impacts in testimony. Long told the committee the amendment differs from Colorado’s measure by including fees as subject to the higher approval threshold, saying Colorado’s omission of fees allowed taxation-by-fee in some cases.

Committee members asked technical and fiscal questions. Representative Meeks asked how surplus refunds would be handled; Long said refunds would function as rebates after the revenue stabilization and emergency funds were fully funded and that the General Assembly would debate the mechanics. Representative Ray and others asked whether the 3 percent cap should instead follow CPI plus population growth like Colorado; Long said he chose the simpler 3 percent-or-CPI approach because it is easier to explain to voters.

Long said proponents believe the amendment could make Arkansas more attractive to businesses and would constrain long-term government growth. No committee vote was recorded during the hearing.