Budget & Taxes (Government Spending)

HB 7251 limits annual state spending growth to the higher of Rhode Island's inflation rate or personal income growth rate, whichever is greater. This directly affects the state budget process by capping how much total state spending can increase each year from the previous year's level. Exceptions include debt payments, federally mandated spending, and emergency expenditures approved by a two-thirds vote. The bill requires annual reporting on spending growth versus the limit and mandates the governor to create a reduction plan if the legislature exceeds the cap. It takes effect upon passage.