This bill mandates the establishment of the state percent of growth and the categorical state percent of growth for two consecutive budget years during the first regular session of the general assembly. Specifically, it requires that during the first regular session of the Ninety-first General Assembly and each subsequent general assembly, the legislature must set these growth percentages for both the current budget year and the following budget year. The bill allows for an increase in these percentages after their initial enactment but prohibits any decrease for the succeeding budget year.

Additionally, the bill amends existing law by removing the previous requirement that the state percent of growth and categorical state percent of growth be established within thirty days of the governor's budget transmission. The specified growth percentages for the budget years beginning July 1, 2022, July 1, 2023, and July 1, 2024, are set at two and one-half percent and three percent, respectively. The bill is effective immediately upon enactment.