HOUSE concurrent RESOLUTION 117

(By Nelson, Mr. Speaker, Mr. Armstead, Ambler, Butler, Cooper, Cowles, Dean, Ellington, Espinosa, Foster, Frich, Gearheart, Harshbarger, Hartman, Householder, Kelly, Maynard, McGeehan, C. Miller,  Paynter, Shott, Sobonya, Westfall, Wilson, and Zatezalo)

[Introduced March 10, 2018; Originating in the Committee on Finance]

Requesting that the Joint Committee on Government and Finance study the impact on states that impose tax and expenditure limitations to restrain the growth of state budgets.

Whereas, The West Virginia Constitution does not impose the tax and expenditure limitations to restrain the growth of state budgets that are imposed in several other states; and

Whereas, among the several states that impose the tax and expenditure limitations to restrain the growth of state budgets, there is an array of unique approaches to the requirement. For example, some states limit the growth of their budgets on the tax side, some on the spending side, some on both.  Some limit the growth on the collections of a specific tax.  Some limit growth in expenditures from year to year, and some of those states tie the limitation to a economic or other growth index.  Some states require refunds in the event revenues or expenditures are exceeded.  Some states allow the limitations to be exceeded with voter approval or a supermajority of votes cast in both chambers; and

Whereas, Legislation proposing to amend the West Virginia Constitution to impose the tax and expenditure limitations to restrain the growth of this state’s budgets has been introduced for this Legislature’s consideration during its current and recent sessions; and

Whereas, During its consideration of these proposed resolutions, the Legislature would benefit from information about the impact of imposing tax and expenditure limitations, about whether there is a best practice among the states that take differing approaches to imposing the limitations, and other germane matters; now, therefore, be it

Resolved by the House of Delegates:

That the Joint Committee on Government and Finance is hereby requested to study the form, conditions and impact of laws that impose tax and expenditure limitations to restrain the growth of state budgets in place in other the states; and, be it

Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2019, on its findings, conclusions, and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it

Further Resolved, That the expenses necessary to conduct this study, to prepare a report, and to draft necessary legislation, be paid from legislative appropriations to the Joint Committee on Government and Finance.