Senate Governance and Finance Committee:
Committee Kills Spending Limit Measure

On a party-line vote, Democrats on the Senate Governance and Finance Committee this week rejected SCA 10 (Strickland), which sought to limit state expenditure growth to the same percentage as the growth in population and the Consumer Price Index. The measure closely mirrors an initiative filed earlier this year that was sponsored by CalTax and others.

The proposed constitutional amendment was rejected June 13 with five Democrats opposed and three Republicans in support.

CalTax Fiscal Policy Director Therese Twomey testified in support of the measure. "A spending limit is critical to bringing the state's fiscal house in order," she said, explaining that a spending limit would protect taxpayers from budget deficits that appear year after year, and would reduce pressure for tax increases during economic downturns. Ms. Twomey said a spending limit "promotes fiscal responsibility by forcing the state to live within its means, while allowing for appropriate growth in years of prosperity."

June 15, 2012
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