Texas House Bill HB1217

Texas 2009 - 81st Regular

Caption

Relating to estimating the rate of growth of the state's economy for purposes of the constitutional spending limit.

Impact

The implications of HB1217 are significant for how state budgetary decisions are made moving forward. By establishing clear guidelines for calculating the rate of economic growth, the bill aims to provide a more transparent and reliable framework for budgeting processes. Additionally, it allows the Board to apply statistical methods to project personal income growth, which could influence both fiscal policy and state funding allocations in future bienniums.

Summary

House Bill 1217 seeks to amend certain provisions in the Government Code related to estimating the rate of growth of the state's economy for determining the constitutional spending limit. The legislation stipulates that to calculate this growth, consideration must be given to the estimated rates of growth in Texas's gross state product and total personal income. Specifically, the bill dictates that the Legislative Budget Board will utilize these economic metrics to adopt the lesser of the two rates as the official estimated growth rate for appropriations.

Contention

While the bill is designed to clarify and streamline economic growth estimations relevant to state spending, it may spark debates among legislators regarding the efficacy of the proposed methods for estimating growth. Some lawmakers might argue that relying solely on these metrics could overlook other crucial economic factors affecting state revenue. Furthermore, there could be contention surrounding the impact of these regulations on specific funding for local initiatives, especially if the estimates result in more conservative fiscal policies.