1 | 1 | | 81R2717 JJT-D |
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2 | 2 | | By: Patrick, Dan, et al. S.B. No. 928 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the limitation on the rate of growth of appropriations. |
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8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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9 | 9 | | SECTION 1. Section 316.001, Government Code, is amended to |
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10 | 10 | | read as follows: |
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11 | 11 | | Sec. 316.001. LIMIT. The rate of growth of appropriations |
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12 | 12 | | in a biennium from state tax revenues not dedicated by the |
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13 | 13 | | constitution may not exceed the lesser of: |
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14 | 14 | | (1) the estimated rate of growth of the state's economy |
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15 | 15 | | as represented by the rate of growth in Texas personal income |
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16 | 16 | | determined under Section 316.002(b); and |
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17 | 17 | | (2) the sum of the estimated average biennial rate of |
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18 | 18 | | the state's population growth and the estimated average biennial |
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19 | 19 | | rate of monetary inflation in this state, determined under Section |
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20 | 20 | | 316.002(c). |
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21 | 21 | | SECTION 2. Section 316.002, Government Code, is amended to |
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22 | 22 | | read as follows: |
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23 | 23 | | Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a) |
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24 | 24 | | Before the Legislative Budget Board submits the budget as |
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25 | 25 | | prescribed by Section 322.008 [322.008(b)], the board shall |
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26 | 26 | | establish: |
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27 | 27 | | (1) the estimated rate of growth of the state's economy |
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28 | 28 | | from the current biennium to the next biennium; |
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29 | 29 | | (2) the sum of the estimated average biennial rate of |
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30 | 30 | | the state's population growth and the estimated average biennial |
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31 | 31 | | rate of monetary inflation in this state; |
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32 | 32 | | (3) the level of appropriations for the current |
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33 | 33 | | biennium from state tax revenues not dedicated by the constitution; |
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34 | 34 | | and |
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35 | 35 | | (4) [(3)] the amount of state tax revenues not |
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36 | 36 | | dedicated by the constitution that could be appropriated for the |
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37 | 37 | | next biennium within the limit established by the lesser of the |
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38 | 38 | | estimated rate of growth of the state's economy as determined under |
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39 | 39 | | Subsection (b) and the sum of the estimated average biennial rate of |
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40 | 40 | | the state's population growth and the estimated average biennial |
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41 | 41 | | rate of monetary inflation in this state as determined under |
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42 | 42 | | Subsection (c). |
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43 | 43 | | (b) The [Except as provided by Subsection (c), the] board |
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44 | 44 | | shall determine the estimated rate of growth of the state's economy |
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45 | 45 | | from the current biennium to the next biennium by dividing the |
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46 | 46 | | estimated Texas total personal income for the next biennium by the |
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47 | 47 | | estimated Texas total personal income for the current biennium. |
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48 | 48 | | Using standard statistical methods, the board shall make the |
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49 | 49 | | estimate by projecting through the biennium the estimated Texas |
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50 | 50 | | total personal income reported by the United States Department of |
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51 | 51 | | Commerce or its successor in function. |
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52 | 52 | | (c) Using information and analysis obtained from the United |
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53 | 53 | | States Department of Labor or its successor in function, the state |
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54 | 54 | | demographer or the demographer's successor in function, the United |
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55 | 55 | | States Census Bureau or its successor in function, and other |
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56 | 56 | | relevant sources the board considers reliable, the board shall |
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57 | 57 | | determine the sum of the estimated average biennial rate of the |
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58 | 58 | | state's population growth and the estimated average biennial rate |
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59 | 59 | | of monetary inflation in this state by: |
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60 | 60 | | (1) determining the estimated average biennial rate of |
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61 | 61 | | the state's population growth over the current and the two previous |
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62 | 62 | | state fiscal bienniums; |
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63 | 63 | | (2) determining the estimated average biennial rate of |
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64 | 64 | | monetary inflation in this state over the current and the two |
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65 | 65 | | previous state fiscal bienniums; and |
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66 | 66 | | (3) adding the rate determined under Subdivision (1) |
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67 | 67 | | to the rate determined under Subdivision (2). [If a more |
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68 | 68 | | comprehensive definition of the rate of growth of the state's |
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69 | 69 | | economy is developed and is approved by the committee established |
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70 | 70 | | by Section 316.005, the board may use that definition in |
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71 | 71 | | calculating the limit on appropriations.] |
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72 | 72 | | (d) To ensure compliance with Article VIII, Section 22, of |
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73 | 73 | | the Texas Constitution, the Legislative Budget Board may not |
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74 | 74 | | transmit in any form to the governor or the legislature the budget |
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75 | 75 | | as prescribed by Section 322.008(c) or the general appropriations |
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76 | 76 | | bill as prescribed by Section 322.008(d) until the limit on the rate |
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77 | 77 | | of growth of appropriations has been adopted as required by this |
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78 | 78 | | subchapter. |
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79 | 79 | | (e) In the absence of an action by the Legislative Budget |
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80 | 80 | | Board to adopt a spending limit as provided by this section [in |
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81 | 81 | | Subsections (a) and (b)], the limit on the rate of growth of |
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82 | 82 | | appropriations under this subchapter is [estimated rate of growth |
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83 | 83 | | in the state's economy from the current biennium to the next |
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84 | 84 | | biennium shall be treated as if it were] zero, and the amount of |
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85 | 85 | | state tax revenues not dedicated by the constitution that may |
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86 | 86 | | [could] be appropriated within the limit is [established by the |
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87 | 87 | | estimated rate of growth in the state's economy shall be] the same |
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88 | 88 | | as the level of appropriations for the current biennium. |
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89 | 89 | | SECTION 3. Section 316.008, Government Code, is amended to |
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90 | 90 | | read as follows: |
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91 | 91 | | Sec. 316.008. EFFECT OF LIMIT; ENFORCEMENT. (a) In this |
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92 | 92 | | section: |
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93 | 93 | | (1) "Constitutional limit on the rate of growth of |
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94 | 94 | | appropriations" means the limit on the rate of growth of |
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95 | 95 | | appropriations determined by the Legislative Budget Board under |
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96 | 96 | | Section 316.002(b) as finally adopted by the committee under |
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97 | 97 | | Section 316.005(b) or as considered adopted under Section |
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98 | 98 | | 316.005(c). |
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99 | 99 | | (2) "Statutory limit on the rate of growth of |
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100 | 100 | | appropriations" means the limit on the rate of growth of |
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101 | 101 | | appropriations determined by the Legislative Budget Board under |
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102 | 102 | | Section 316.002(c) as finally adopted by the committee under |
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103 | 103 | | Section 316.005(b) or as considered adopted under Section |
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104 | 104 | | 316.005(c). |
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105 | 105 | | (b) With respect to the constitutional limit on the rate of |
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106 | 106 | | growth of appropriations, unless [Unless] the legislature adopts a |
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107 | 107 | | resolution under Article VIII, Section 22(b), of the Texas |
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108 | 108 | | Constitution raising the proposed constitutional limit on |
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109 | 109 | | appropriations, the proposed constitutional limit is binding on the |
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110 | 110 | | legislature with respect to all appropriations for the next |
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111 | 111 | | biennium made from state tax revenues not dedicated by the |
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112 | 112 | | constitution. |
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113 | 113 | | (c) [(b)] The rules of the house of representatives and |
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114 | 114 | | senate shall provide for enforcement of Subsection (b) [(a)]. |
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115 | 115 | | (d) When the statutory limit on the rate of growth of |
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116 | 116 | | appropriations is lower than the constitutional limit on the rate |
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117 | 117 | | of growth of appropriations or is lower than the constitutional |
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118 | 118 | | limit as raised by a resolution described by Subsection (b), the |
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119 | 119 | | proposed statutory limit is binding on the legislature with respect |
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120 | 120 | | to all appropriations for the next biennium made from state tax |
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121 | 121 | | revenues not dedicated by the constitution unless the legislature |
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122 | 122 | | by general law provides that the statutory limit does not apply to |
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123 | 123 | | appropriations for that biennium. |
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124 | 124 | | (e) If the Legislative Budget Board does not adopt a |
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125 | 125 | | spending limit as provided by Section 316.002, both the |
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126 | 126 | | constitutional limit on the rate of growth of appropriations and |
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127 | 127 | | the statutory limit on the rate of growth of appropriations are |
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128 | 128 | | considered to be zero. |
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129 | 129 | | SECTION 4. The changes in law made by this Act apply only |
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130 | 130 | | with respect to appropriations for the state fiscal biennium |
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131 | 131 | | beginning September 1, 2011, and subsequent state fiscal bienniums. |
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132 | 132 | | SECTION 5. This Act takes effect September 1, 2009. |
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