WeVote
Log In

Bill

Bill

HB 74

AN ACT proposing to create a new section of the Constitution of Kentucky relating to limits on government spending and taxation.

2026 Regular Session Introduced by Josh Calloway and 3 co-sponsors

Proposes a Kentucky constitutional cap on government spending and tax increases to limit growth, with exemptions, enforcement, and a statewide referendum for adoption.

to Elections, Const. Amendments & Intergovernmental Affairs (H)
#constitution #ky. #countyclerks #electionsandvoting #localmandate #secretaryofstate #taxation
0
WeVote Research Nonpartisan
Bill Summary · HB 74

Overview

HB 74 (2026RS) from Kentucky proposes creating a new section of the Kentucky Constitution to establish limits on government spending and taxation. The bill introduces constitutional constraints intended to govern fiscal policy at the state and local levels.

Main purpose and intent

  • Establish a constitutional framework to cap government spending growth and restrict the level of taxation.
  • Provide a statutory baseline to constrain future spending decisions, aiming to promote fiscal discipline and predictability in state budgeting.

Key provisions and changes

  • Constitutional Amendment: Creates a new section in the Kentucky Constitution dedicated to limits on government spending and taxation.
  • Spending Limits: The amendment would set an annual cap or formula for total government expenditures, potentially tied to factors such as inflation, population, or baseline spending. The exact mechanism (e.g., growth rate, adjustments, exemptions) is not detailed in the summary provided, but would be defined in the bill’s text.
  • Taxation Limits: The amendment would impose restrictions on the ability of government entities to raise or impose taxes beyond the defined limits, including thresholds for tax increases or requirements to meet caps before new taxes can be enacted.
  • Enforcements and Exceptions: The measure is likely to include provisions for enforcement, potential sunset or review clauses, and possible exemptions or emergencies where the limits may be temporarily relaxed (e.g., disaster response, public safety, or constitutional requirements).
  • Adoption Process: As a constitutional amendment, the bill would require passage by both chambers and a statewide voter referendum, per Kentucky constitutional amendment procedures.

Who or what would be affected

  • State Government: Limits would apply to overall state spending and budgeting decisions, influencing annual appropriations and fiscal planning.
  • Local Governments: If the amendment covers “government” broadly, it could restrict local government spending and taxation decisions, possibly requiring alignment with state-imposed caps.
  • Taxpayers and Tax Policy: Citizens could benefit from caps on tax increases and more predictable fiscal environment, though there could be trade-offs in services or programs if spending is restrained.
  • Government Agencies and Programs: Departments, programs, and services may face tighter budgeting constraints, potentially affecting funding levels, staffing, and service delivery.

Procedural and timeline aspects

  • Introduced: January 7, 2026, in the Kentucky House of Representatives.
  • Committee referrals: Initially to Committee on Committees (H), and then to Elections, Const. Amendments & Intergovernmental Affairs (H) for consideration.
  • Next steps: If advanced, the bill would proceed through standard constitutional amendment process, requiring passage by both chambers and a statewide vote in a constitutional referendum before adoption.

Potential impacts and considerations

  • Fiscal discipline and predictability could improve if limits are clear and durable.
  • Risk of constraining necessary investments in areas such as education, infrastructure, and public health if caps are too rigid or not adequately tailored.
  • Economic impact depends on the stringency of the limits and the mechanisms for adjustments or emergencies.
  • Clarity in the amendment’s language will be critical to implementability, including definitions of “spending,” “taxation,” and allowable exemptions.

If you’d like, I can tailor this summary to focus on specific sections once the bill’s text is available, or compare it to similar constitutional spending/tax limits in other states.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.