81R2717 JJT-D
By: Patrick, Dan, et al. S.B. No. 928
A BILL TO BE ENTITLED
AN ACT
relating to the limitation on the rate of growth of appropriations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 316.001, Government Code, is amended to
read as follows:
Sec. 316.001. LIMIT. The rate of growth of appropriations
in a biennium from state tax revenues not dedicated by the
constitution may not exceed the lesser of:
(1) the estimated rate of growth of the state's economy
as represented by the rate of growth in Texas personal income
determined under Section 316.002(b); and
(2) the sum of the estimated average biennial rate of
the state's population growth and the estimated average biennial
rate of monetary inflation in this state, determined under Section
316.002(c).
SECTION 2. Section 316.002, Government Code, is amended to
read as follows:
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
Before the Legislative Budget Board submits the budget as
prescribed by Section 322.008 [322.008(b)], the board shall
establish:
(1) the estimated rate of growth of the state's economy
from the current biennium to the next biennium;
(2) the sum of the estimated average biennial rate of
the state's population growth and the estimated average biennial
rate of monetary inflation in this state;
(3) the level of appropriations for the current
biennium from state tax revenues not dedicated by the constitution;
and
(4) [(3)] the amount of state tax revenues not
dedicated by the constitution that could be appropriated for the
next biennium within the limit established by the lesser of the
estimated rate of growth of the state's economy as determined under
Subsection (b) and the sum of the estimated average biennial rate of
the state's population growth and the estimated average biennial
rate of monetary inflation in this state as determined under
Subsection (c).
(b) The [Except as provided by Subsection (c), the] board
shall determine the estimated rate of growth of the state's economy
from the current biennium to the next biennium by dividing the
estimated Texas total personal income for the next biennium by the
estimated Texas total personal income for the current biennium.
Using standard statistical methods, the board shall make the
estimate by projecting through the biennium the estimated Texas
total personal income reported by the United States Department of
Commerce or its successor in function.
(c) Using information and analysis obtained from the United
States Department of Labor or its successor in function, the state
demographer or the demographer's successor in function, the United
States Census Bureau or its successor in function, and other
relevant sources the board considers reliable, the board shall
determine the sum of the estimated average biennial rate of the
state's population growth and the estimated average biennial rate
of monetary inflation in this state by:
(1) determining the estimated average biennial rate of
the state's population growth over the current and the two previous
state fiscal bienniums;
(2) determining the estimated average biennial rate of
monetary inflation in this state over the current and the two
previous state fiscal bienniums; and
(3) adding the rate determined under Subdivision (1)
to the rate determined under Subdivision (2). [If a more
comprehensive definition of the rate of growth of the state's
economy is developed and is approved by the committee established
by Section 316.005, the board may use that definition in
calculating the limit on appropriations.]
(d) To ensure compliance with Article VIII, Section 22, of
the Texas Constitution, the Legislative Budget Board may not
transmit in any form to the governor or the legislature the budget
as prescribed by Section 322.008(c) or the general appropriations
bill as prescribed by Section 322.008(d) until the limit on the rate
of growth of appropriations has been adopted as required by this
subchapter.
(e) In the absence of an action by the Legislative Budget
Board to adopt a spending limit as provided by this section [in
Subsections (a) and (b)], the limit on the rate of growth of
appropriations under this subchapter is [estimated rate of growth
in the state's economy from the current biennium to the next
biennium shall be treated as if it were] zero, and the amount of
state tax revenues not dedicated by the constitution that may
[could] be appropriated within the limit is [established by the
estimated rate of growth in the state's economy shall be] the same
as the level of appropriations for the current biennium.
SECTION 3. Section 316.008, Government Code, is amended to
read as follows:
Sec. 316.008. EFFECT OF LIMIT; ENFORCEMENT. (a) In this
section:
(1) "Constitutional limit on the rate of growth of
appropriations" means the limit on the rate of growth of
appropriations determined by the Legislative Budget Board under
Section 316.002(b) as finally adopted by the committee under
Section 316.005(b) or as considered adopted under Section
316.005(c).
(2) "Statutory limit on the rate of growth of
appropriations" means the limit on the rate of growth of
appropriations determined by the Legislative Budget Board under
Section 316.002(c) as finally adopted by the committee under
Section 316.005(b) or as considered adopted under Section
316.005(c).
(b) With respect to the constitutional limit on the rate of
growth of appropriations, unless [Unless] the legislature adopts a
resolution under Article VIII, Section 22(b), of the Texas
Constitution raising the proposed constitutional limit on
appropriations, the proposed constitutional limit is binding on the
legislature with respect to all appropriations for the next
biennium made from state tax revenues not dedicated by the
constitution.
(c) [(b)] The rules of the house of representatives and
senate shall provide for enforcement of Subsection (b) [(a)].
(d) When the statutory limit on the rate of growth of
appropriations is lower than the constitutional limit on the rate
of growth of appropriations or is lower than the constitutional
limit as raised by a resolution described by Subsection (b), the
proposed statutory limit is binding on the legislature with respect
to all appropriations for the next biennium made from state tax
revenues not dedicated by the constitution unless the legislature
by general law provides that the statutory limit does not apply to
appropriations for that biennium.
(e) If the Legislative Budget Board does not adopt a
spending limit as provided by Section 316.002, both the
constitutional limit on the rate of growth of appropriations and
the statutory limit on the rate of growth of appropriations are
considered to be zero.
SECTION 4. The changes in law made by this Act apply only
with respect to appropriations for the state fiscal biennium
beginning September 1, 2011, and subsequent state fiscal bienniums.
SECTION 5. This Act takes effect September 1, 2009.