Relating to the constitutional limit on the rate of growth of appropriations and the use of surplus state revenues.
Impact
The bill introduces amendments to existing sections of the Government Code regarding budget recommendations made by the Legislative Budget Board (LBB). Under the provisions of HB290, the LBB is required to determine a maximum allowable growth rate for appropriations. This will be based on historical trends in Texas's population and prevailing inflation rates, potentially impacting future fiscal planning and policy-making, as well as the allocation of funds toward state programs and services.
Summary
House Bill 290 seeks to establish a constitutional limit on the rate of growth of appropriations for the state of Texas. More specifically, it stipulates that appropriations from all sources of revenue, excluding federal government funds, may not outpace the combined estimated rates of population change and inflation from the preceding state fiscal biennium. This regulation is designed to ensure fiscal stability and predictability in Texas state government funding and budgeting processes.
Conclusion
Ultimately, HB290 is positioned at the intersection of fiscal policy and governance in Texas. Its passage could redefine how the state approaches budgeting, with long-lasting implications on appropriations strategy. The debate surrounding HB290 reflects the ongoing tension between maintaining fiscal integrity and enhancing the capacity of the state government to meet public needs.
Contention
Supporters of HB290 argue that it promotes responsible fiscal management by placing essential checks on state spending. By tying appropriations growth to tangible economic indicators like population and inflation, they believe the state can avoid excessive budget increases. However, critics of the bill may raise concerns that such strict limitations could hinder the state's ability to respond to growing needs and emergencies, particularly in education, health care, and infrastructure. They may contend that the flexibility to adjust appropriations is necessary to address unforeseen circumstances and adequately fund critical areas.
Enabling for
Proposing a constitutional amendment concerning the limitation on the rate of growth in appropriations and the use of unencumbered surplus state revenues to provide for a rebate of state franchise taxes, to reduce public school district property taxes, and to fund the state's rainy day fund.
Relating to an annual state budget and legislative budget sessions in even-numbered years and to political contributions made during a legislative session.
Proposing a constitutional amendment excepting certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.
Proposing a constitutional amendment excepting certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.
Proposing a constitutional amendment excepting certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.
Proposing a constitutional amendment concerning the limitation on the rate of growth in appropriations and the use of unencumbered surplus state revenues to provide for a rebate of state franchise taxes, to reduce public school district property taxes, and to fund the state's rainy day fund.
Proposing a constitutional amendment concerning the limitation on the rate of growth of state appropriations and the use of unencumbered surplus state revenues to provide for a rebate of state franchise taxes, to reduce public school district property taxes, and to fund the state's rainy day fund.