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State Budget Policy
Tue February 12, 2013
Bill To Cap State Spending Moves To The House
The House Revenue and Tax Committee on Tuesday advanced legislation that would cap state spending.
The bill sponsored by Republican House Majority Leader Bruce Westerman of Hot Springs would limit the state’s annual budget growth to 3 percent or a three year average of the state’s G-D-P, whichever is less.
Westerman says it’s just a spending control.
“I don’t think it really changes a lot, it just sets a parameter there to say that we’re not going to spend more than 3 percent or the average of three years growth in GDP,” Westerman said.
The Governor has said he’s against the bill.
The director of the state’s Department of Finance and Administration told lawmakers the bill may be unconstitutional and could force him, instead of the legislature, to make spending cuts to state programs.
The bill passed on a voice vote.