House Bill No. by Representative Tarver proposes a constitutional amendment to establish a Government Growth Limit that will restrict the amount of recurring revenue from the State General Fund (Direct) that the legislature can appropriate for recurring expenses in any fiscal year, starting with the 2027-2028 Fiscal Year. The bill outlines that the limit will be calculated by the Revenue Estimating Conference and requires the legislature to create procedures for this calculation. It also specifies that any recurring revenue recognized above this limit and below the existing expenditure limit can only be appropriated for nonrecurring expenses, which are defined as expenses not expected to recur in the same amounts each year. The amendment allows for exceptions to this rule and permits changes to the growth limit with a two-thirds vote from both houses of the legislature under certain conditions.

Additionally, the bill retains existing provisions that prohibit appropriations from exceeding the official forecast at the time of appropriation and mandates that the governor's proposed budget must comply with both the expenditure limit and the new growth limit. The initial growth limit for the 2027-2028 Fiscal Year is set to be equal to the previous year's appropriations for recurring expenses plus three percent. The proposed amendment will be submitted to voters for approval in a statewide election scheduled for November 3, 2026.