Constitutional state spending cap pitched, but faces a long road to passage

A proposed constitutional amendment to limit state government spending got an initial hearing Tuesday at the statehouse, but it didn't get a vote, and its prospects are not clear.

House Bill 146 would tie state spending increases to a formula based on inflation and the state's population growth, if voters agreed in 2024 to add the rule to the state constitution. The General Assembly could override that spending limit, but only with a two-thirds vote in both chambers.

This year's bill got a hearing Tuesday in the House Judicairy 1 Committee, but it was for discussion only, and bill sponsor Rep. Dennis Riddell, R-Alamance, said he hasn't been promised a vote. Half the committee's members did not attend for Riddell's presentation.

Riddell said his proposal differs from Colorado's controversial Taxpayer's Bill of Rights in several ways, including the "fire escape" provision that allows lawmakers to spend beyond the cap if approved by a two-thirds vote of the General Assembly. Colorado's law requires a voter referendum.

Committee Democrats pushed back against Riddell's bill Tuesday, saying it will hamstring future legislatures. Riddell said the bill isn't about protecting state programs, "it's to protect taxpayers" and "puts discipline into the General Assembly."

Both chambers would need to approve this bill with three-fifths votes to put it on the ballot next year.

Several constitutional amendment proposals may ultimately be approved for next year's ballot, but legislative leaders have indicated those decisions likely won't be made during the legislative session that they hope to wrap in to the coming weeks. Other sessions are planned for later this year and next year.

The State Employees Association of North Carolina opposed the spending cap during Tuesday's committee hearing. The NC chapter of the National Federation of Independent Businesses supported it.