Summary of Bill S 657

Bill Information

• Bill Number: S 657
• Title: Requires Governor to Perform Cost Benefit Analysis of Tax Expenditures
• Status: Referred to Budget and Revenue
• Introduced: January 08, 2025
• Classification: Bill

Purpose and Intent

Bill S 657 aims to enhance fiscal accountability and transparency in the state's budgeting process by mandating the Governor to conduct a cost-benefit analysis of all tax expenditures. The intent is to ensure that tax breaks and incentives provided by the state are justified by their economic benefits, thereby promoting more informed decision-making regarding fiscal policies.

Key Provisions

• Cost-Benefit Analysis Requirement: The bill requires the Governor to perform a comprehensive cost-benefit analysis for each tax expenditure. This analysis will evaluate the economic impact, effectiveness, and overall value of the tax breaks.

• Reporting: The findings from the cost-benefit analyses must be compiled into a report that will be submitted to the legislature. This report is intended to provide lawmakers with data-driven insights to guide future tax policy decisions.

• Frequency of Analysis: While the bill does not specify a timeline for how often these analyses must be conducted, it implies a systematic approach to reviewing tax expenditures regularly.

Who Would Be Affected

• State Government: The bill places additional responsibilities on the Governor's office and relevant state agencies to conduct and report on these analyses.

• Taxpayers and Businesses: The outcomes of the cost-benefit analyses may influence future tax policies, potentially affecting taxpayers and businesses that benefit from tax expenditures.

• Legislators: Members of the legislature will gain access to detailed reports that can inform their decisions on tax policy and budget allocations.

Procedural Aspects

• Current Status: As of January 08, 2025, the bill has been referred to the Budget and Revenue committee for further consideration.

• Related Legislation: Bill S 657 is part of a broader legislative context, with several related bills from prior sessions (S 3080, S 7083, S 408, S 7347, S 5015, S 2515, S 852, S 620) that may address similar themes or fiscal accountability measures.

Conclusion

Bill S 657 represents a significant step towards improving the evaluation of tax expenditures in the state. By requiring a structured analysis of the costs and benefits associated with tax breaks, the bill seeks to foster greater transparency and accountability in fiscal policy, ultimately aiming to enhance the economic well-being of the state and its residents.