82R104 JJT-F
By: Paxton H.J.R. No. 70
A JOINT RESOLUTION
proposing a constitutional amendment 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.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 22, Article VIII, Texas Constitution, is
amended to read as follows:
Sec. 22. (a) The [In no biennium shall the] rate of growth
of appropriations from the state treasury for a fiscal biennium, as
compared to the previous fiscal biennium, from all available
sources of revenue except the federal government may not [state tax
revenues not dedicated by this constitution] exceed the maximum
[the estimated] rate of growth determined in accordance with
Subsection (c) of this section and general law. The amount of
appropriations from the state treasury for a fiscal biennium may
not exceed the amount of permissible appropriations from all
available sources of revenue except the federal government for that
fiscal biennium, as determined in accordance with Subsection (d) of
this section and general law [of the state's economy].
(b) For purposes of this section, 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 are excluded
from the determinations made under Subsections (c) and (d) of this
section.
(c) The maximum rate of growth of appropriations from all
available sources of revenue except the federal government is the
least of:
(1) a rate equal to the sum of:
(A) the estimated rate of growth of this state's
population; and
(B) the estimated rate of monetary inflation in
this state;
(2) the estimated rate of growth of this state's gross
state product; or
(3) the estimated rate of growth of personal income of
this state's residents.
(d) The amount of permissible appropriations from all
available sources of revenue except the federal government may not
exceed an amount determined by multiplying the amount of
appropriations from all available sources of revenue except the
federal government for the then current fiscal biennium by the sum
of one plus the maximum rate of growth determined under Subsection
(c) of this section. If the maximum rate of growth determined under
Subsection (c) of this section is a negative rate, the maximum
amount of permissible appropriations from all available sources of
revenue except the federal government for the next fiscal biennium
is an amount less than the amount of appropriations for the then
current fiscal biennium reduced in accordance with that negative
growth rate.
(e) The legislature shall provide by general law procedures
to implement this section [subsection].
(f) [(b)] If the legislature, by adoption on a record vote
of a resolution approved by two-thirds [a record vote of a majority]
of the members of each house, finds that an emergency exists and
identifies the nature of the emergency, the legislature may provide
by that resolution for appropriations in excess of the maximum
permissible amount of appropriations authorized under [by]
Subsection (d) [(a)] of this section. The total of the excess
appropriations authorized by resolutions approved under this
subsection may not exceed the total of the amounts [amount]
specified in those resolutions [the resolution].
(g) [(c)] In no case shall appropriations exceed revenues
as provided in Article III, Section 49a, of this constitution.
Nothing in this section shall be construed to alter, amend, or
repeal Article III, Section 49a, of this constitution.
SECTION 2. Section 49a, Article III, Texas Constitution, is
amended by adding Subsections (c) and (d) to read as follows:
(c) A bill containing an appropriation may not be considered
as passed and may not be sent to the Governor for consideration
until the Comptroller of Public Accounts endorses on the bill the
Comptroller's certificate showing that the amount appropriated
does not exceed the maximum amount of permissible appropriations
authorized under Section 22, Article VIII, of this constitution.
(d) When the Comptroller of Public Accounts finds that a
bill containing an appropriation exceeds the maximum amount of
permissible appropriations authorized under Section 22, Article
VIII, of this constitution, the Comptroller shall:
(1) endorse on the bill that finding;
(2) return the bill to the House in which it
originated; and
(3) notify immediately the House of Representatives
and the Senate of the finding.
SECTION 3. Section 49-g(b), Article III, Texas
Constitution, is amended to read as follows:
(b) The comptroller shall, not later than the 90th day of
each state fiscal biennium, transfer to the economic stabilization
fund one-quarter [one-half] of any unencumbered positive balance of
general revenues on the last day of the preceding biennium. If
necessary, the comptroller shall reduce the amount transferred in
proportion to the other amounts prescribed by this section to
prevent the amount in the fund from exceeding the limit in effect
for that biennium under Subsection (g) of this section. For
purposes of this subsection, general revenues are considered
encumbered on the last day of a state fiscal biennium only to the
extent that general revenues are subject to payment for particular
identifiable and legally enforceable obligations of this state that
were incurred on or before that day and intended to be paid out of
appropriations for that biennium.
SECTION 4. Article III, Texas Constitution, is amended by
adding Section 49-g-1 to read as follows:
Sec. 49-g-1. (a) Not later than the 90th day of each state
fiscal biennium, the comptroller of public accounts shall ascertain
the amount of the unencumbered positive balance of general revenues
on the last day of the preceding state fiscal biennium that remains
after the transfer of general revenues to the economic
stabilization fund under Section 49-g(b) of this article. For
purposes of this subsection, general revenues are considered
encumbered on the last day of a state fiscal biennium only to the
extent that general revenues are subject to payment for particular
identifiable and legally enforceable obligations of this state that
were incurred on or before that day and intended to be paid out of
appropriations for that biennium.
(b) Not later than the 91st day of each state fiscal
biennium, the comptroller of public accounts shall transfer to a
property tax relief fund two-thirds of the amount of the balance
ascertained under Subsection (a) of this section. Money
transferred to the property tax relief fund may be appropriated
only for the purpose of reducing as provided by general law the rate
of the school district maintenance and operation taxes authorized
by Section 3(e), Article VII, of this constitution.
(c) The legislature by general law shall provide the method
by which the school district maintenance and operation tax rate is
to be reduced by the appropriation of money dedicated for that
purpose by Subsection (b) of this section. The maximum rate at
which a school district may impose maintenance and operation taxes
is to be reduced by an amount equal to one cent per $100 valuation of
taxable property for each one cent per $100 valuation of taxable
property that the school district's maintenance and operation tax
is reduced by the general law method required by this subsection.
(d) In preparing an estimate of anticipated revenues for a
succeeding biennium as required by Section 49a of this article, the
comptroller of public accounts shall estimate the amount of the
transfers that will be made under this section. The comptroller
shall deduct that amount from the estimate of anticipated revenues
as if the transfers were made on August 31 of that fiscal year.
SECTION 5. (a) This proposed constitutional amendment
shall be submitted to the voters at an election to be held November
6, 2012.
(b) The ballot shall be printed to permit voting for or
against the proposition: "The constitutional amendment 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."