Senate committee approves 'Taxpayers Bill of Rights' amendment by division amid debate over growth limits

The Senate Judiciary Committee on Monday approved a committee substitute to Senate Joint Resolution 21, a proposed constitutional amendment the counsel described as the "Taxpayers Bill of Rights." The substitute would prohibit state government from increasing general revenue spending from one fiscal year to the next by more than population growth plus inflation, with an effective date of July 1, 2028, and carve outs for federal funds and externally dedicated monies.

Counsel said the substitute also requires the court to specify that the prohibition does not apply to expenditures of federal funds or monies from other external sources dedicated to specific funds. The measure aims to limit year‑over‑year state spending growth to a formula of population increase plus inflation.

Senators pressed counsel on practical measures: how to calculate year‑to‑year population growth outside the decennial census, which data source would be authoritative, and how a negative growth or negative inflation would affect the cap. Committee counsel said population estimates would typically come from existing sources and that the Legislature would ultimately determine implementation details during the budget process.

Several senators invoked Colorado as an example of a state with a similar cap; supporters said such limits encourage fiscal discipline, predictability and can protect bond ratings, while opponents warned of unintended consequences such as reduced legislative flexibility during revenue shocks, pressure to raise local property taxes and constraints on pension and infrastructure spending.

The committee agreed to the committee substitute. When a division was requested, the clerk recorded 11 in favor and 5 opposed. The committee reported the substitute to the full Senate with a recommendation for adoption and asked that the measure be first referred to the Finance Committee under its double committee reference.