AZ HCR2032

Proposes a constitutional amendment to replace Arizona's current expenditure limit (7% of total personal income) with a "stabilized expenditure limit" based on fiscal year 1999-2000 actual payments adjusted for population changes and cost of living.

Defines key terms including "cost of living" (implicit price deflator for gross national product), "expenditure" (any authorization for payment of state revenues), and "population" (U.S. Census data).

Excludes specific revenue types from the expenditure limit calculation, including bond proceeds for capital projects, university tuition, federal grants, discretionary user charges, and tax refunds.

Allows the legislature to exceed the expenditure limit only with a two-thirds vote in each house and requires appropriations in the following year to be reduced by any excess spending from the prior year.

Permits expenditure limit adjustments when federal or state governments assume or transfer governmental funding responsibilities, excludes debt principal payments from the limit, and establishes a fund for surplus tax collections when revenues fall below 90% of the limit.