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| 2. It provides that the maximum annual percentage increase in | | local government expenditures may not exceed inflation plus the | | percentage change in state population in the prior year. |
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| | | 3. It authorizes the State or a local government to | | authorize expenditures in excess of the established limit only | | upon a vote of 2/3 of the entire elected membership of each | | House of the Legislature, in the case of the State, or upon a | | 2/3 vote of the governing body of the local government, in the | | case of a local government. |
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| | | 4. It requires that revenues collected in excess of the | | spending limits must be placed in an emergency reserve fund | | containing the equivalent of 3 months of operating revenues | | or, if the fund already contains that amount, refunded to the | | citizens. |
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| | | 5. It requires that, in order for the bill to take effect, | | the issue be submitted to the voters of the State for their | | approval. |
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