HB 1150 Summary

• Imposes a general expenditure limit on state spending beginning with the fiscal year starting July 1, 2011, based on Indiana personal income growth rates calculated over six prior calendar years.

• Establishes controlled state funds (general fund, counter-cyclical revenue and economic stabilization fund, and state tuition reserve fund) and defines what expenditures are subject to the spending cap, excluding tax refunds, transfers between funds, judgments, and certain tax distributions to political subdivisions.

• Allows the General Assembly to exceed the spending cap only with a two-thirds majority vote in both chambers, and only for specific reasons including shifted spending responsibilities or tax-funded service expansions.

• Permits emergency appropriations through supplemental acts requiring two-thirds approval in both chambers and joint resolutions explaining the emergency circumstances.

• Expires the previous business cycle state spending controls on June 30, 2011, and requires budget bills to disclose total appropriations, expenditures subject to the cap, and the applicable expenditure limit.