Archive: Spending

  • Item-Reduction Veto Constitutional Amendment March 15, 2013

    Item-Reduction Veto Constitutional Amendment Summary Currently, governors in 43 states have the authority to reduce state spending through the use of the line-item veto. This authority allows governors to prevent, or at least moderate, “pork-barrel” spending. The theory behind the line-item veto is that the executive, elected by the whole, can more easily stand up to regional and special interests than legislators. Of the 43 states with line-item vetoes, 10 states grant governors the item reduction veto. The item-reduction veto allows governors to reduce spending without striking the entire amount. The theory behind the item-reduction veto is that the executive […]

  • Tax and Expenditure Limitation Act February 6, 2013

    Tax and Expenditure Limitation Act Summary The Tax and Expenditure Limitation Act recognizes the important tradeoff between constraints on the growth of state and local government, and the provision of adequate reserves to meet emergencies and to stabilize budgets over the business cycle. The Act is a constitutional provision designed to accomplish these objectives. The Act links a tax and spending limit to an emergency reserve fund and a budget stabilization fund. The Act also provides for temporary reductions in tax rates and/or tax rebates when surplus revenue accumulates above the tax and spending limit, and the cap on the […]