Budget & Taxes (State Budget)

Requires the general assembly to cap expenditures based on a five (5) year increase in personal income or the annual rate of inflation based on the consumer price index.

HR 7257 proposes a constitutional amendment to limit annual state budget growth in Rhode Island. The bill would require that total state spending increases each year not exceed the higher of either the previous year's inflation rate (using the Consumer Price Index) or the growth rate of Rhode Island personal income. Exceptions include debt payments, federally mandated spending, and emergencies approved by a two-thirds vote of the legislature. If approved by voters, this amendment would directly affect how the state government sets annual budgets.

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.