Relating to the limitation on the rate of growth of appropriations.
If enacted, SB928 will amend existing laws, particularly those outlined in the Government Code regarding budget preparation and execution. The changes will primarily affect state fiscal planning by requiring the Legislative Budget Board to adopt specific metrics for determining annual spending limits. This could lead to potential reductions in state-funded programs if economic growth does not keep pace with population increases and inflation, thus introducing a degree of financial discipline in the state budgetary process.
Senate Bill 928 seeks to impose stricter limitations on the growth of state appropriations from tax revenues that are not constitutionally dedicated. Specifically, the bill stipulates that appropriations cannot exceed either the estimated growth rate of the state's economy or a composite measure that includes both population growth and inflation. This aims to provide a more stable budget process by creating a predictable framework for state spending, thereby helping legislators manage financial resources more effectively.
Opposition to SB928 may arise from various stakeholders, including public service advocates and local government officials, who could argue that such limits could improperly constrain necessary funding for education, healthcare, and infrastructure, especially during economic downturns. Proponents may counter that the bill will encourage responsible fiscal management, but critics could highlight the risks of underfunding essential services as a consequence of strict limits on appropriations.