NC S607

Proposes constitutional amendment limiting annual state spending growth to inflation plus population growth, with increases permitted only by two-thirds supermajority vote in both houses.

Establishes Emergency Savings Reserve Fund requiring 2% annual deposits of General Fund appropriations until fund reaches 12.5% of prior year General Fund spending; withdrawals require two-thirds supermajority vote.

Reduces maximum state income tax rate from 10% to 5%, effective for taxable years beginning January 1, 2020.

Requires bills to increase spending limits or modify Emergency Savings Reserve Fund to be read three times in each house and signed by presiding officers of both houses.

Amendment submitted to voters at November 8, 2016 general election; becomes effective upon voter approval and State Board of Elections certification, with spending limit applying to fiscal years beginning July 1, 2017.