A comparison of fiscal consequences for tax and expenditure limitation proposals

摘要

Three constitutional tax and expenditure limitation proposals are analyzed for historical consequences. The first and second allowed 32% less state spending and dollar 710 million less in local government aid compared to actual. The first proposal also imposed limits on local government units and allowed property taxes to increase about 5% more than actual. The second proposal covered state revenues only and would have required a 29.7% increase in property taxes to fully replace the reduction in local government aid. A third proposal excluded local government aid but effectively covered only half of the state general fund revenues.