82R103 JJT-F
By: Paxton H.B. No. 756
A BILL TO BE ENTITLED
AN ACT
relating to the maximum 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. MAXIMUM RATE OF GROWTH OF APPROPRIATIONS
[LIMIT]. The maximum rate of growth of appropriations from the
state treasury for a biennium, as compared to the previous [in a]
biennium, from all available sources of revenue and for any purpose
but excluding appropriations of revenue received from the federal
government and appropriations from any source of revenue made for
the sole purpose of reducing the imposition of ad valorem taxes by a
political subdivision of this state or otherwise providing ad
valorem tax relief, is the least of the following rates:
(1) [from state tax revenues not dedicated by the
constitution may not exceed] the estimated rate of growth of this
[the] state's economy;
(2) a rate equal to the sum of:
(A) the estimated biennial rate of growth of this
state's population; and
(B) the estimated biennial rate of monetary
inflation in this state; and
(3) the estimated biennial rate of growth of this
state's gross state product.
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
determine [establish]:
(1) the estimated rate of growth of this [the] state's
economy from the current biennium to the next biennium, determined
as provided by Subsection (b);
(2) a rate equal to the sum of:
(A) the estimated biennial rate of growth of this
state's population, determined as provided by Subsection (c); and
(B) the estimated biennial rate of monetary
inflation in this state, determined as provided by Subsection (d);
(3) the estimated biennial rate of growth of this
state's gross state product, determined as provided by Subsection
(e);
(4) the amount [level] of appropriations for the
current biennium from all available sources of revenue, excluding:
(A) appropriations of revenue from the federal
government; and
(B) appropriations from any source of revenue
made for the sole purpose of:
(i) reducing the imposition of ad valorem
taxes by a political subdivision of this state; or
(ii) otherwise providing ad valorem tax
relief [state tax revenues not dedicated by the constitution]; and
(5) [(3)] the maximum permissible amount of
appropriations of revenue from all available sources [state tax
revenues not dedicated by the constitution that could be
appropriated] for the next biennium, excluding appropriations of
revenue from the federal government and appropriations from any
source of revenue made for the sole purpose of reducing the
imposition of ad valorem taxes by a political subdivision of this
state or otherwise providing ad valorem tax relief, [within the
limit established] by multiplying the total amount of
appropriations for the current biennium determined as provided by
Subdivision (4) by the sum of one and the maximum rate of growth of
appropriations as provided by Section 316.001 [the estimated rate
of growth of the state's economy].
(b) The Legislative Budget Board [Except as provided by
Subsection (c), the board] shall determine the estimated rate of
growth of this [the] state's economy 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) The Legislative Budget Board shall determine the
estimated biennial rate of growth of the state's population based
on the average rate of growth during the preceding six years
according to estimates provided by the state demographer [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) The Legislative Budget Board shall determine the
estimated biennial rate of monetary inflation in this state based
on the average rate of change during the preceding six years of the
effective consumer price index for this state. For purposes of this
subsection, the effective consumer price index for this state is
the average of the consumer price indexes, as determined by the
United States Department of Labor, for:
(1) the Houston metropolitan area; and
(2) the Dallas/Fort Worth metropolitan area.
(e) The Legislative Budget Board shall determine the
estimated biennial rate of growth of this state's gross state
product by dividing the estimated gross state product for the then
current state fiscal year by the average of the gross state products
for the preceding four state fiscal years. In determining the
estimated gross state product for the then current state fiscal
year and the average of the gross state products for the preceding
four state fiscal years, the board shall consider information and
analysis provided by:
(1) the Bureau of Economic Analysis of the United
States Department of Commerce, or its successor in function; and
(2) the comptroller.
(f) To ensure compliance with Section 22, 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 maximum permissible amount [limit on the rate of growth]
of appropriations for the next biennium has been adopted as
required by this subchapter.
(g) [(e)] In the absence of an action by the Legislative
Budget Board to adopt a maximum permissible amount of
appropriations for the next biennium [spending limit] as provided
by this section, the maximum permissible amount of appropriations
for the next biennium, excluding appropriations of revenue from the
federal government and appropriations from any source of revenue
made for the sole purpose of reducing the imposition of ad valorem
taxes by a political subdivision of this state or otherwise
providing ad valorem tax relief, is [in Subsections (a) and (b), the
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 could be appropriated within the limit
established by the estimated rate of growth in the state's economy
shall be] the same as the amount [level] of those appropriations for
the current biennium, determined as provided by Subsection (a)(4).
SECTION 3. Section 316.003, Government Code, is amended to
read as follows:
Sec. 316.003. PUBLICATION. Before the Legislative Budget
Board approves the items of information required by Section
316.002, the board shall publish in the Texas Register the proposed
items of information and a description of the methodology and
sources used in the determinations [calculations].
SECTION 4. Section 316.004, Government Code, is amended to
read as follows:
Sec. 316.004. PUBLIC HEARING. Not later than December 1 of
each even-numbered year, the Legislative Budget Board shall hold a
public hearing to solicit testimony regarding the proposed items of
information and the methodology used in making the determinations
[calculations] required by Section 316.002.
SECTION 5. Section 316.006, Government Code, is amended to
read as follows:
Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
authorized by a two-thirds majority vote of the members of the board
from each house, the Legislative Budget Board budget
recommendations relating to the proposed appropriations of revenue
for the next biennium from any available source, excluding
appropriations of revenue from the federal government and
appropriations from any source of revenue made for the sole purpose
of reducing the imposition of ad valorem taxes by a political
subdivision of this state or otherwise providing ad valorem tax
relief, [state tax revenues not dedicated by the constitution] may
not exceed the maximum permissible amount of those appropriations
[limit] adopted by the committee under Section 316.005.
SECTION 6. Section 316.007(a), Government Code, is amended
to read as follows:
(a) The Legislative Budget Board shall include in its budget
recommendations the proposed maximum permissible amount [limit] of
appropriations of revenue from all available sources for the next
biennium, excluding appropriations of revenue from the federal
government and appropriations from any source of revenue made for
the sole purpose of reducing the imposition of ad valorem taxes by a
political subdivision of this state or otherwise providing ad
valorem tax relief [from state tax revenues not dedicated by the
constitution].
SECTION 7. Section 316.008(a), Government Code, is amended
to read as follows:
(a) Unless the legislature adopts a resolution under
Section 22(f), Article VIII, [Section 22(b), of the] Texas
Constitution, raising the proposed maximum permissible amount of
[limit on] appropriations for the next biennium, the proposed
maximum permissible amount [limit] is binding on the legislature
with respect to all appropriations for the next biennium made from
all available sources of revenue, excluding:
(1) appropriations of revenue from the federal
government; and
(2) appropriations from any source of revenue made for
the sole purpose of:
(A) reducing the imposition of ad valorem taxes
by a political subdivision of this state; or
(B) otherwise providing ad valorem tax relief
[state tax revenues not dedicated by the constitution].
SECTION 8. (a) The changes in law made by this Act apply
only in relation to appropriations made for the state fiscal
biennium beginning September 1, 2013, and subsequent state fiscal
bienniums.
(b) Appropriations for the state fiscal biennium that
begins September 1, 2011, are governed by Subchapter A, Chapter
316, Government Code, as that subchapter read immediately before
the effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 9. This Act takes effect on the date on which the
constitutional amendment proposed by the 82nd Legislature, Regular
Session, 2011, regarding the maximum rate of growth of
appropriations and the use of unencumbered surplus general revenues
to fund the state's rainy day fund and a public school property tax
relief fund, takes effect. If that amendment is not approved by the
voters, this Act has no effect.