AB 475

Current law generally provides that the legislature may not enact any bill that

would cause in the second year of any fiscal biennium general purpose revenue (GPR)

expenditures to exceed taxes and departmental revenues. This provision applies

only to the initial bill enacted during a fiscal biennium that would cause GPR

expenditures to exceed taxes and departmental revenues and not to the enactment

of any subsequent bill that would cause the gap between GPR expenditures and taxes

and departmental revenues to grow.

This bill provides that, if the Legislative Fiscal Bureau estimates that in the

second year of any fiscal biennium GPR expenditures would exceed those taxes and

departmental revenues paid to the state, then the legislature may not enact any bill

that would increase GPR expenditures unless the bill provides additional funding for

the expenditures.