Committee recommends 'do not pass' on bill to cap political‑subdivision budgets at CPI

The Senate Finance and Taxation Committee voted to recommend a do‑not‑pass on Senate Bill 2378, a measure that would have limited political‑subdivision budgets to increases tied to the consumer price index unless a vote of the people allowed otherwise.

Senator Rummel moved the do‑not‑pass recommendation, arguing the proposal threatened essential local services. “If we put a cap on things like water usage, water bills, garbage disposal, sewage, all of the services that a city provides ... you are going to be placing a 3% cap on it. It may very well restrict the possibility of some of the cities even providing services,” Rummel said, warning that fee‑for‑service programs and inflationary cost spikes could force service reductions.

Senator Patton agreed, pointing to unpredictable costs such as fuel and maintenance for equipment: “If we limit that, then we say we're either going to cut that service or we're going to have to find other resources to meet the demands of providing the service that's there.”

The motion to recommend do‑not‑pass was seconded and carried on a committee roll call recorded in the transcript: the clerk recorded four yeses for do‑not‑pass and two noes, a 4‑2 committee result. Committee members noted there are competing bills from the House addressing caps in different ways and asked that those alternatives be considered before taking final action.

The committee indicated a senator would carry the bill if necessary, but the do‑not‑pass recommendation moves SB 2378 off the committee’s favorable docket unless further action is taken.