83R2917 JJT-F
By: Williams S.B. No. 1656
A BILL TO BE ENTITLED
AN ACT
relating to the constitutional limit on the rate of growth of
appropriations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 316.001 and 316.002, Government Code,
are amended to read as follows:
Sec. 316.001. LIMIT. (a) The rate of growth of
appropriations in a state fiscal biennium from state tax revenues
not dedicated by the constitution may not exceed a rate determined
by adding the estimated rate of the increase or decrease in the
state's population during the preceding state fiscal biennium and
the estimated rate of monetary inflation or deflation in this state
during that preceding biennium [the estimated rate of growth of the
state's economy].
(b) If the sum of the estimated rates described by
Subsection (a) is a negative number, the amount of appropriations
authorized for the next state fiscal biennium from state tax
revenues not dedicated by the constitution must decrease as
prescribed by this subchapter.
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
Before the Legislative Budget Board submits the budget for the next
state fiscal biennium as prescribed by Section 322.008(c), the
board shall establish:
(1) the maximum allowable rate of growth of
appropriations between the current state fiscal biennium and the
next state fiscal biennium, in accordance with Section 22, Article
VIII, Texas Constitution, expressed as a percentage, by adding the
following estimated rates, as determined by the board:
(A) the estimated rate of change of the state's
population during the current state fiscal biennium, expressed as a
percentage; and
(B) the estimated rate of monetary inflation or
deflation in this state during the current state fiscal [estimated
rate of growth of the state's economy from the current biennium to
the next] biennium, expressed as a percentage;
(2) the estimated amount [level] of appropriations for
the current state fiscal biennium from state tax revenues not
dedicated by the constitution; and
(3) the amount of state tax revenues not dedicated by
the constitution that could be appropriated for the next state
fiscal biennium within the limit established in accordance with the
maximum allowable rate of growth determined under Subdivision (1)
and the estimated amount of appropriations for the current state
fiscal biennium determined under Subdivision (2) [by the estimated
rate of growth of the state's economy].
(b) If the sum of the estimated rate of increase or decrease
in the state's population and the estimated rate of monetary
inflation or deflation in this state is a negative number, the
amount of appropriations authorized for the next state fiscal
biennium from state tax revenues not dedicated by the constitution
may not exceed the amount of appropriations from those revenues in
the current state fiscal biennium reduced by the product of that
amount and the additive inverse of the sum of those rates. [Except
as provided by Subsection (c), the board shall determine the
estimated rate of growth of 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) [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 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 limit on the rate of growth of appropriations has been
adopted as required by this subchapter.
(d) [(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 sum of the estimated rate of
population growth and the estimated rate of inflation [in the
state's economy from the current biennium to the next biennium]
shall be treated as if that rate [it] were zero, and the amount of
state tax revenues not dedicated by the constitution that could be
appropriated for the next state fiscal biennium is [within the
limit established by the estimated rate of growth in the state's
economy shall be] the same as the amount [level] of appropriations
from those revenues for the current biennium.
SECTION 2. Section 316.008(a), Government Code, is amended
to read as follows:
(a) Unless the legislature adopts a resolution under
Section 22, Article VIII, [Section 22(b), of the] Texas
Constitution, raising the proposed limit on appropriations, the
proposed limit is binding on the legislature with respect to all
appropriations for the next state fiscal biennium made from state
tax revenues not dedicated by the constitution.
SECTION 3. The changes in law made by this Act apply only,
as applicable, in relation to appropriations made for the state
fiscal biennium beginning September 1, 2015, and subsequent state
fiscal bienniums. Appropriations for the state fiscal biennium
that begins September 1, 2013, are governed by Sections 316.001,
316.002, and 316.008, Government Code, as those sections existed on
January 1, 2013, and the former law is continued in effect for that
purpose.
SECTION 4. This Act takes effect on the date on which the
constitutional amendment proposed by the 83rd Legislature, Regular
Session, 2013, regarding the limitation on the rate of growth of
appropriations takes effect. If that amendment is not approved by
the voters, this Act has no effect.