What kinds of control on government spending growth work?

A new article in the Cato Journal, by Robert Krol, examines various strategies for limiting government spending growth. He finds several methods to have proven success: Tax and Expenditure Limits (such as those in Colorado’s Taxpayer Bill of Rights), balanced budget requirements (a long-standing requirement in Colorado), and citizen initiatives (part of the Colorado Constitution since the early 20th century). In contrast, two methods have been shown not to work: Rainy Day Funds (which are often used to avoid tax and spend limitations), and term limits (which are actually associated with higher spending; legislative, but not gubernatorial, term limits are associated with lower taxation).

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