I'm not ideologically in favor of smaller or bigger government. I want smarter government, and there's nothing smart about passing legislation that will reduce the state government's revenue by between $80 and $900 million a year without defining what services to cut.
Also, "bigger government" is a vague enough definition that it could easily apply to this initiative. It creates a new category of tax, and a new category of tax credit. It will probably reduce the government's revenue, but the legislature can and most likely will raise revenue in other places to plug the gaps rather than cutting necessary agencies.
The same people who want a smaller government are also usually in favor of a balanced budget amendment, which would force any proposal to cut taxes or raise spending to specify how it balances.