LD 1383
pg. 3
Page 2 of 4 An Act To Limit the Growth of Government Spending Page 4 of 4
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LR 562
Item 1

 
revenues received in the immediately preceding fiscal year are
less than the total General Fund revenues received in the fiscal
year 2 years previous and if the fund is at its 6% limit.

 
Sec. 3. Statutory referendum procedure; submission at statewide election; form of
question; effective date. This Act takes effect when approved only for
the purpose of permitting its submission to the legal voters
of the State at a statewide election held on the Tuesday
following the first Monday of November following passage of
this Act. The municipal officers of this State shall notify
the inhabitants of their respective cities, towns and
plantations to meet, in the manner prescribed by law for
holding a statewide election, to vote on the acceptance or
rejection of this Act by voting on the following question:

 
"Do you favor placing a limit on the maximum annual
percentage increase in state and local government
expenditures; requiring a 2/3 vote of the Legislature to
approve state General Fund expenditures that exceed this
limit and a 2/3 vote of a local government's governing
body to approve local government expenditures that exceed
this limit; and requiring that surplus funds be placed in
an emergency reserve fund or returned to the citizens?"

 
The legal voters of each city, town and plantation shall
vote by ballot on this question and designate their choice by
a cross or check mark placed within a corresponding square
below the word "Yes" or "No." The ballots must be received,
sorted, counted and declared in open ward, town and plantation
meetings and returns made to the Secretary of State in the
same manner as votes for members of the Legislature. The
Governor shall review the returns and, if it appears that a
majority of the legal votes are cast in favor of the Act, the
Governor shall proclaim that fact without delay, and the Act
takes effect 30 days after the date of the proclamation.

 
The Secretary of State shall prepare and furnish to each
city, town and plantation all ballots, returns and copies of
this Act necessary to carry out the purposes of this
referendum.

 
SUMMARY

 
This bill establishes expenditure limits on state and local
governments as follows.

 
1. It provides that the maximum annual percentage increase
in state General Fund expenditures, excluding federal funds
received by the General Fund, may not exceed inflation plus
the percentage change in state population in the prior year.


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