Senators pressed how ACA 20 interacts with the state appropriations (Gann) limit
Committee members asked whether excluding reserve deposits from the Gann limit would create incentives to save or to shift spending; the LAO said excluding deposits when made can encourage saving in surge years but that the SAL already allows many exclusions and that ultimate choices remain with future legislatures.
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Several senators pressed analysts on how ACA 20 would interact with the state appropriations limit (commonly called the Gann limit). Chair Laird asked whether excluding deposits from the limit when they are made would effectively allow the state to "spend more"; the LAO replied that the SAL requires that spending be counted somewhere and that excluding deposits at the time they are made can create an incentive to put more money into excluded categories like reserves during revenue surges.
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