NC H188

Establishes a General Fund expenditure limit equal to the prior fiscal year's limit increased by a "fiscal growth factor" (average of inflation and population change over three years), beginning with fiscal year 2013-2014 based on the FY 2012-2013 budget as the baseline.

Prohibits the Governor from proposing and the General Assembly from appropriating General Fund expenditures exceeding the annual limit, except by a two-thirds vote of both houses for non-recurring expenses not to exceed 12 months.

Creates an Emergency Reserve Trust Fund (replacing the Savings Reserve Account) that receives one-fourth of unreserved General Fund balances and all revenue exceeding the expenditure limit, with a five percent cap; excess funds must be returned as tax relief.

Requires conservative budget revenue estimates based on prior calendar year collections with adjustments for revenue changes and elimination of one-time revenues, with one-half of any credit balance available only for capital projects.

Proposes a constitutional amendment (to be voted on in November 2012) codifying the General Fund expenditure limit and requiring voter approval before statutory provisions become effective.