Honorable Cecil Bell, Chair, House Committee on Intergovernmental Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB5267 by Bell, Cecil (relating to municipal and county financial requirements.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
It is assumed that any costs associated with the bill could be absorbed using existing resources.
Local Government Impact
The bill would set a limit on the total annual expenditures of municipalities and counties. The bill would require that a municipality's or a county's total spending from all available revenue sources in a fiscal year could not exceed the greater of the total amount spent in the previous fiscal year; or that same amount adjusted by a growth factor equal to the product of the state's population growth rate and the inflation rate, as determined by the Legislative Budget Board. The bill would provide for two exceptions to the limit on total expenditures: voter approval or a state of disaster declaration or renewal by the Governor.