HCR 2021 Summary

• Proposes an amendment to Article IX, Section 17 of the Arizona Constitution to replace the existing appropriation limit based on personal income with a new "stabilized appropriation limit" beginning in fiscal year 2015-2016.

• The new limit adjusts actual state general fund expenditures from fiscal year 2012-2013 to reflect cumulative changes in state population and cost of living, rather than using a 7 percent of total personal income calculation.

• Requires the Economic Estimates Commission to determine and publish the stabilized appropriation limit on or before January 1 of each year.

• Legislature may exceed the appropriation limit only by affirmative two-thirds vote in each house, with payments of prior-year obligations applied to the year the obligation was incurred.

• Allows the legislature by majority vote to change the base year for adjustments beginning in 2022 and every ten years thereafter, provided the new base year does not increase the appropriation limit more than the original fiscal year 2012-2013 base would have increased it.