The bill proposes a change to the Minnesota Constitution to limit state spending increases. It suggests that the total increase in state spending every two years should not be more than the sum of inflation plus population growth in Minnesota. Expenditures for this purpose would exclude federal funds, any revenue refunded to taxpayers, and certain other specified expenses.

The measure of inflation to be used is based on the Consumer Price Index specific to Minneapolis-St. Paul-Bloomington as calculated by the U.S. Bureau of Labor Statistics, and population changes will be based on federal estimates updated with each decade's census.

Any state revenue that exceeds this spending limit must be returned to taxpayers either as property tax refunds or through reductions in tax rates. However, the state legislature can override this spending cap by a 60% majority vote in both legislative bodies for a specific biennium.

The bill also outlines that this proposed amendment to the Minnesota Constitution will be presented to voters at the general election in 2026, asking whether they agree with this new rule to restrict state spending growth to just inflation and population increases.