In what has become an annual exercise in futility, Associated Industries of Missouri once again testified in support of a joint resolution, sponsored by Sen. Brad Lager (R-12, Savannah), that would allow voters to decide if they want to impose a spending limit on the Missouri General Assembly.
The measure would establish a limit on state appropriations equal to the amount appropriated in the previous year plus any increase in inflation plus any increase in population, if revenues exceed the amount that is able to be spent, money would be deposited in a “savings” account called the cash operating reserve fund. Also, the resolution would require 7% of general revenue to be appropriated into another savings account called the budget reserve fund. Revenues in excess of the amount needed to ensure the balance in the cash operating reserve fund is at least 5% of the amount of general revenue collected, would be used to provide a reduction in income taxes.
“Every year this has been proposed, we support this measure that would force the state to put some money back for a rainy day and provide tax relief to taxpayers if revenues exceed our needs,” said Ray McCarty. “We believe we are spending enough of the taxpayers’ money on state services now and we allow them to grow for increases in price and the number of people in the state. This bill would allow taxpayers to stop unbridled growth in state spending and keep more of THEIR money,” said McCarty.
SJR 26 was supported by Associated Industries of Missouri and Americans for Prosperity. The joint resolution was opposed by some of the same groups that have consistently opposed our tax reduction plans for the last several years: the Civic Council of Greater Kansas City, the Missouri NEA, and the Missouri Budget Project.
If passed by the Missouri Senate and Missouri House, the resolution would bypass the governor and go straight to the voters in November, 2014.
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