House Bill 1280, which would reinstate the state spending limit, passed the House Finance Committee Wednesday.
The bill would reinstate the state spending limit that was repealed without voter approval in 2009. It will reinstate the government spending limit that prevented the state's operating budget from growing more than six percent each year.
“Reinstating the state spending limit is a practical way to ensure the state’s spending stays under control,” said Rep. Beezley who co-sponsored the bill. “Coloradans want and deserve fiscal responsibility here at the Capitol, and this bill will help make sure we truly stay within our means, in both economically tight times and good times.”
The proposal also creates a rainy day fund for the state equal to eight percent of the state's operating budget, or General Fund. The fund would be built over time with the revenues above the reinstated spending limit.
The bill was passed by Republicans on a party line vote. The bill will now move to the full House for consideration.