Spending limits

Missouri's Hancock Amendment is a constitutional requirement, adopted by voters, that establishes caps on the growth in state revenue, with some exceptions for revenue generated by voter-approved taxes. Mainly, the amendment is aimed at preventing the legislature from increasing taxes on its own that would produce more revenue -- and more spending. Because state government is required to spend only what it takes in, it also tends to spend everything it gets.

It wasn't that many years ago that Missouri taxpayers received refunds because the Hancock Amendments limits had been exceeded. That was during the economic boom of the 1990s when the growth in state revenue matched the burst of economic expansion across the nation.

Then came the recession of the first part of this decade. As a result, the factors that trigger Hancock caps aren't expected to occur again, at least not in the foreseeable future.

There is still concern that spending needs more control, especially at a time when state government is having to choose carefully how its available resources are used. This concern has produced an interest among fiscal conservatives in a Taxpayers Bill or Rights for Missouri, similar to plans already adopted or under consideration in several other states.

Supporters of this concept, known as TABOR, say politicians need voter-imposed spending caps that could, presumably, result in more state revenue, even under Hancock, than elected officials would be permitted to spend. If that happened, excess funds would first go to an emergency-spending fund, which also would be capped. Once that fund had reached its limits, the remainder of the excess funds would be rebated to taxpayers.

Aside from scrutiny by a handful of Missourians interested in spending limits, the TABOR concept hasn't been discussed much in this state. Now that the word is out that supporters are likely to push for such a limit, Missourians should learn more about the proposal and discuss its merits and shortfalls. Out of such a exchange of views could come a sound decision if the idea ever makes it onto a ballot.