The bill proposes an amendment to the Minnesota Constitution that would limit state spending increases to a maximum biennial percentage change that does not exceed the combined rate of inflation and population growth. Specifically, the amendment would add a new section to Article XI, which defines state spending to include all expenditures and reserve increases, while excluding federal funds, excess revenue refunded to taxpayers, and certain other categories. The bill outlines how inflation and population changes will be calculated, and mandates that any excess revenue must be returned to taxpayers through property tax refunds or permanent tax rate reductions. Additionally, the legislature could exceed this spending limitation for one biennium with a supermajority vote.

The proposed amendment is set to be submitted to voters during the 2024 general election, with the ballot question asking whether the Minnesota Constitution should be amended to prohibit state spending increases beyond the rates of inflation and population growth. This initiative aims to create a more controlled fiscal environment for the state, ensuring that spending aligns with economic growth indicators.