HJR1005
An Amendment To The Arkansas Constitution To Create The Arkansas Taxpayer Bill Of Rights.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
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AI-Generated Summary
This bill proposes a constitutional amendment titled the 'Arkansas Taxpayer Bill of Rights' to modify how the state manages its budget and revenue. It mandates that the General Assembly must operate under a balanced budget, prohibiting deficit spending. The bill establishes a requirement for a three-fourths supermajority vote in both houses of the General Assembly to approve any new taxes, fee increases, or legislation that would increase net state tax or fee revenue. It also limits the annual growth of general revenue expenditures to the percentage increase of the Consumer Price Index, excluding specific emergency expenditures. Furthermore, the bill establishes two reserve funds—a Catastrophic Reserve Fund and a Budget Stabilization Trust Fund—to manage surplus revenues and potential shortfalls. Any remaining excess state revenue after funding these reserves must be refunded to taxpayers. The amendment also repeals existing constitutional language regarding tax increases and sets an effective date of January 1, 2027.
Potential Impact Analysis
Who Might Benefit?
Taxpayers would be the primary beneficiaries of this bill, as it provides mechanisms for tax refunds during periods of revenue surplus and places strict limitations on the state's ability to increase taxes or fees. Additionally, proponents of fiscal conservatism and limited government would benefit from the imposed spending caps, the prohibition of deficit spending, and the elevated voting threshold required to raise revenue.
Who Might Suffer?
The state government and public entities that rely on state funding would be most negatively impacted, as the spending caps and supermajority requirements could severely restrict the ability to address emerging fiscal needs, maintain public services, or respond to economic changes. Programs and agencies reliant on discretionary state appropriations might face limited funding growth despite inflationary pressures, and the difficulty of passing new revenue measures could hinder the government's ability to provide new or expanded public infrastructure and services.
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