NC H929

Proposes a constitutional amendment to limit annual state spending growth to the combined rate of inflation plus population growth, with exceptions for federal funds, debt service, insurance funds, user fees, endowments, gifts, and tax relief.

Allows the General Assembly to exceed the spending limit only through a two-thirds majority vote in both houses.

Creates an Emergency Reserve Fund (capped at 3% of spending limit) for declared emergencies and a Budget Stabilization Fund (capped at 15% of spending limit) to cover revenue shortfalls.

Directs surplus revenues beyond both reserve funds to pay down unfunded liabilities in the State Health Plan or Teachers' and State Employees' Retirement System, or to provide taxpayer refunds and tax rate reductions.

Amendment requires voter approval at the November 2016 general election and becomes effective July 1, 2018 for fiscal years beginning on or after that date.