Four States Reject Spending Restrictions; Tax Limitation Approved in Arizona

Five states voted on measures that would have the effect of limiting the growth of government expenditures or taxes. Four states rejected the measures, while Arizona narrowly approved its measure.

Arizona Voters narrowly approved Proposition 101 on Tuesday by 10,400 votes, with 50.4 percent in favor and 49.6 percent against it. This amendment to the state constitution will limit the increase of property taxes for counties, cities, towns and community college districts to two percent each year.

Maine

Voters rejected 54 percent to 46 percent a bill that would impose expenditure limitations on the state and local government. Under this proposal, growth for state school administrative units and educational institutions would have been indexed to inflation and the changes in student enrollment. Any future increase in tax revenue would have needed to be approved by two-thirds of the jurisdiction's legislative body and the voters of the jurisdiction.

Michigan

Another variation of indexing future expenditures was found on the ballot in Michigan. In this case, after an initial expenditure increase, subsequent annual funding changes would be equal to the rate of inflation. Voters rejected Proposition 5 in Michigan 62 percent to 38 percent. The law intended to increase current funding for education purposes by $565 million.

Nebraska

Nebraska's Measure 423 was a constitutional amendment to limit state spending based on previous appropriations, the rate of inflation, and population change within the state. It failed by a wide margin, with 70 percent of voters rejecting the amendment.

Oregon

Measure 48 was another constitutional amendment that failed by a large amount, with 71 percent voting against the amendment and 29 percent approving it. The measure would have pegged the state's budget to the change in future population and inflation rates. The limitation could have been overridden with a two-thirds vote of both the Oregon House and Senate and subsequent approval by a majority of the voters.

Last year's SSTI 2005 Elections Review described extensively the history of tax or expenditure limitations (TELs) in the country. It is available at: http://www.ssti.org/Digest/2005/111405.htm#TABOR



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