Texas 2009 - 81st Regular

Texas Senate Bill SB928 Compare Versions

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11 81R2717 JJT-D
22 By: Patrick, Dan, et al. S.B. No. 928
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the limitation on the rate of growth of appropriations.
88 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
99 SECTION 1. Section 316.001, Government Code, is amended to
1010 read as follows:
1111 Sec. 316.001. LIMIT. The rate of growth of appropriations
1212 in a biennium from state tax revenues not dedicated by the
1313 constitution may not exceed the lesser of:
1414 (1) the estimated rate of growth of the state's economy
1515 as represented by the rate of growth in Texas personal income
1616 determined under Section 316.002(b); and
1717 (2) the sum of the estimated average biennial rate of
1818 the state's population growth and the estimated average biennial
1919 rate of monetary inflation in this state, determined under Section
2020 316.002(c).
2121 SECTION 2. Section 316.002, Government Code, is amended to
2222 read as follows:
2323 Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
2424 Before the Legislative Budget Board submits the budget as
2525 prescribed by Section 322.008 [322.008(b)], the board shall
2626 establish:
2727 (1) the estimated rate of growth of the state's economy
2828 from the current biennium to the next biennium;
2929 (2) the sum of the estimated average biennial rate of
3030 the state's population growth and the estimated average biennial
3131 rate of monetary inflation in this state;
3232 (3) the level of appropriations for the current
3333 biennium from state tax revenues not dedicated by the constitution;
3434 and
3535 (4) [(3)] the amount of state tax revenues not
3636 dedicated by the constitution that could be appropriated for the
3737 next biennium within the limit established by the lesser of the
3838 estimated rate of growth of the state's economy as determined under
3939 Subsection (b) and the sum of the estimated average biennial rate of
4040 the state's population growth and the estimated average biennial
4141 rate of monetary inflation in this state as determined under
4242 Subsection (c).
4343 (b) The [Except as provided by Subsection (c), the] board
4444 shall determine the estimated rate of growth of the state's economy
4545 from the current biennium to the next biennium by dividing the
4646 estimated Texas total personal income for the next biennium by the
4747 estimated Texas total personal income for the current biennium.
4848 Using standard statistical methods, the board shall make the
4949 estimate by projecting through the biennium the estimated Texas
5050 total personal income reported by the United States Department of
5151 Commerce or its successor in function.
5252 (c) Using information and analysis obtained from the United
5353 States Department of Labor or its successor in function, the state
5454 demographer or the demographer's successor in function, the United
5555 States Census Bureau or its successor in function, and other
5656 relevant sources the board considers reliable, the board shall
5757 determine the sum of the estimated average biennial rate of the
5858 state's population growth and the estimated average biennial rate
5959 of monetary inflation in this state by:
6060 (1) determining the estimated average biennial rate of
6161 the state's population growth over the current and the two previous
6262 state fiscal bienniums;
6363 (2) determining the estimated average biennial rate of
6464 monetary inflation in this state over the current and the two
6565 previous state fiscal bienniums; and
6666 (3) adding the rate determined under Subdivision (1)
6767 to the rate determined under Subdivision (2). [If a more
6868 comprehensive definition of the rate of growth of the state's
6969 economy is developed and is approved by the committee established
7070 by Section 316.005, the board may use that definition in
7171 calculating the limit on appropriations.]
7272 (d) To ensure compliance with Article VIII, Section 22, of
7373 the Texas Constitution, the Legislative Budget Board may not
7474 transmit in any form to the governor or the legislature the budget
7575 as prescribed by Section 322.008(c) or the general appropriations
7676 bill as prescribed by Section 322.008(d) until the limit on the rate
7777 of growth of appropriations has been adopted as required by this
7878 subchapter.
7979 (e) In the absence of an action by the Legislative Budget
8080 Board to adopt a spending limit as provided by this section [in
8181 Subsections (a) and (b)], the limit on the rate of growth of
8282 appropriations under this subchapter is [estimated rate of growth
8383 in the state's economy from the current biennium to the next
8484 biennium shall be treated as if it were] zero, and the amount of
8585 state tax revenues not dedicated by the constitution that may
8686 [could] be appropriated within the limit is [established by the
8787 estimated rate of growth in the state's economy shall be] the same
8888 as the level of appropriations for the current biennium.
8989 SECTION 3. Section 316.008, Government Code, is amended to
9090 read as follows:
9191 Sec. 316.008. EFFECT OF LIMIT; ENFORCEMENT. (a) In this
9292 section:
9393 (1) "Constitutional limit on the rate of growth of
9494 appropriations" means the limit on the rate of growth of
9595 appropriations determined by the Legislative Budget Board under
9696 Section 316.002(b) as finally adopted by the committee under
9797 Section 316.005(b) or as considered adopted under Section
9898 316.005(c).
9999 (2) "Statutory limit on the rate of growth of
100100 appropriations" means the limit on the rate of growth of
101101 appropriations determined by the Legislative Budget Board under
102102 Section 316.002(c) as finally adopted by the committee under
103103 Section 316.005(b) or as considered adopted under Section
104104 316.005(c).
105105 (b) With respect to the constitutional limit on the rate of
106106 growth of appropriations, unless [Unless] the legislature adopts a
107107 resolution under Article VIII, Section 22(b), of the Texas
108108 Constitution raising the proposed constitutional limit on
109109 appropriations, the proposed constitutional limit is binding on the
110110 legislature with respect to all appropriations for the next
111111 biennium made from state tax revenues not dedicated by the
112112 constitution.
113113 (c) [(b)] The rules of the house of representatives and
114114 senate shall provide for enforcement of Subsection (b) [(a)].
115115 (d) When the statutory limit on the rate of growth of
116116 appropriations is lower than the constitutional limit on the rate
117117 of growth of appropriations or is lower than the constitutional
118118 limit as raised by a resolution described by Subsection (b), the
119119 proposed statutory limit is binding on the legislature with respect
120120 to all appropriations for the next biennium made from state tax
121121 revenues not dedicated by the constitution unless the legislature
122122 by general law provides that the statutory limit does not apply to
123123 appropriations for that biennium.
124124 (e) If the Legislative Budget Board does not adopt a
125125 spending limit as provided by Section 316.002, both the
126126 constitutional limit on the rate of growth of appropriations and
127127 the statutory limit on the rate of growth of appropriations are
128128 considered to be zero.
129129 SECTION 4. The changes in law made by this Act apply only
130130 with respect to appropriations for the state fiscal biennium
131131 beginning September 1, 2011, and subsequent state fiscal bienniums.
132132 SECTION 5. This Act takes effect September 1, 2009.