Calpundit and South Knox Bubba are discussing state constitutional limits on spending. As always, the devil is in the details, but here in Misery, this has been pretty much a disaster. While it limits profligate spending, it also makes it really hard to deal with budget cycles. If Misery had been able to bank some of the excesses during the good years, we would have a reasonable rainy day fund to deal with the current downturn.
Most importantly, the Hancock Amendment here in Missouri, has limited effective investment in transportation and other infrastructure investments that have long term benefits. The St. Louis Business community is fed up with poor transporation infrastructure and Hancock is being rightly blamed.
Hancock defines limits as such:
he revenue limit shall be calculated for each fiscal year and shall be equal to the product of the ratio of total state revenues in fiscal year 1980-1981 divided by the personal income of Missouri in calendar year 1979 multiplied by the personal income of Missouri in either the calendar year prior to the calendar year in which appropriations for the fiscal year for which the calculation is being made, or the average of personal income of Missouri in the previous three calendar years, whichever is greater.
Perhaps there is a way to impose a limit and not deal with the problems Missouri has, but my experience is that the best way to deal with spending is through elections.