Ballot Initiative would Limit State Revenue, Trigger Refunds

A ballot initiative in the Missouri Senate, SJR 5, would limit state revenues by requiring state refunds should revenue growth exceed 5% or more should it pass the legislature and be approved by voters. Should that happen, 9 1/2% of state revenues in excess of the preceding year's state revenues would be refunded to taxpayers. This is in addition to the revenue growth restrictions of the Hancock Amendment passed by voters in 1980.

The upside of this initiative is that more money would return to the hands of taxpayers should state revenues permit. The downside is that schools which are dealing with financial issues like Northeast Nodaway would not get as much revenue increases as they would have otherwise and counties and cities would not get as much money either. This means that local entities would be more likely to pass on increased costs to the taxpayers in the form of higher taxes.