Carson Assemblyman calls for constitutional limit on budgets

Assemblyman Ron Knecht, R-Carson City, has proposed a constitutional amendment that attempts to limit state spending and force tax cuts to return any excess money to the people.

Knecht said too much emphasis is put on spending and not enough on controlling spending by state government.

"I think there is a structural problem with taxing and spending that is well illustrated in this session," he said. "State government does not do what businesses and families have to do, and that's look at resources, prioritize your needs, and then do as much of your needs and desires as you can. The state adds up everyone's wish list and then looks for resources, and then says the difference is the new taxes you have to pass."

The proposed amendment would cap appropriations using a formula limited by the growth of the state economy measured by the gross state product. Exceeding that amount would require a two-thirds vote of each legislative house.

Assembly Joint Resolution18 would also create a board of experts similar to the Economic Forum to determine how much the gross state product has grown each fiscal year.

"This amendment would make sure state spending grows no faster than the state economy grows," Knecht said.

All revenues exceeding projections would be put into a separate fund. Any revenues that exceed the official limit on spending by more than 10 percent would have to be used to reduce state or local taxes.

Finally, AJR18 would require the governor to present a budget that also lists priorities for cutting spending by 3 percent and 10 percent in case reductions are necessary.

The proposed amendment was referred to the Ways and Means Committee for study. Knecht said if his fellow lawmakers don't process the amendment, he'll take it directly to the people and try put the issue on the ballot.

"If the leadership won't bring this to a vote, then we'll take it to the people via the initiative process," he said. "I believe it will be the big issue in next campaign. If they jam this tax increase down our throats in the amounts they are talking about right now, we will be so awash in revenue a year-plus from now, we'll be tripping over ourselves to roll back the excess increases of this session."