The bill proposes an amendment to the Minnesota Constitution that would limit total general fund expenditures for a fiscal year to 5-1/3 percent of the forecasted state personal income. This amendment would be added as a new section to Article XI of the Constitution. It specifies that one-time general fund expenditures are not included in this expenditure limit. Additionally, the bill outlines provisions for adjusting the expenditure limit in response to the transfer of governmental functions between federal, state, and local governments, ensuring that any adjustments are consistent with certain principles regarding the transfer of costs and tax revenues.

The proposed amendment is set to be submitted to voters during the 2024 general election, with the question posed to the electorate being whether they support the limitation of general fund expenditures to no more than 5-1/3 percent of state personal income. If adopted, this amendment would establish a new fiscal constraint on state budgeting practices.