83S10014 JJT-D
By: Patrick, Paxton S.B. No. 15
A BILL TO BE ENTITLED
AN ACT
relating to the limitation on the rate of growth in appropriations
from state tax revenues.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 316.001, 316.002, 316.003, 316.004, and
316.006, Government Code, are 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, as compared to those appropriations made for the
previous biennium, may not exceed the least of the following rates:
(1) 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.
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
Before the Legislative Budget Board submits the budget as
prescribed by Section 322.008(c), 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 as
determined under Subsection (b);
(2) a rate, as determined under Subsection (c), 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;
(3) the estimated biennial rate of growth of this
state's gross state product as determined under Subsection (d);
(4) the level of appropriations for the current
biennium from state tax revenues not dedicated by the constitution;
and
(5) [(3)] the maximum permissible amount of state tax
revenues not dedicated by the constitution that may [could] be
appropriated for the next biennium within the limit established by
applying the least of:
(A) the estimated rate of growth of this [the]
state's economy as determined under Subsection (b);
(B) the rate as determined under Subsection (c)
from the rates of population growth and monetary inflation; and
(C) the estimated biennial rate of growth of this
state's gross state product as determined under Subsection (d).
(b) The [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 board shall determine a rate equal to the sum of the
estimated biennial rate of growth of this state's population and
the estimated biennial rate of monetary inflation in this state as
provided by this subsection. The board shall determine the
estimated biennial rate of growth of this state's population based
on the average rate of growth during the preceding five years
according to estimates provided to the board by the state
demographer. The board shall determine the estimated biennial rate
of monetary inflation in this state based on the average rate of
change during the preceding five 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 the Houston metropolitan area and for the
Dallas/Fort Worth metropolitan area.
(d) The 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. The board shall consider information and
analysis provided by the comptroller and the Bureau of Economic
Analysis of the United States Department of Commerce, or its
successor in function. [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.]
(e) [(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 maximum permissible amount [limit on the rate of growth]
of appropriations of state tax revenues not dedicated by the
constitution that may be appropriated for the next biennium has
been adopted as required by this subchapter.
(f) If [(e) In the absence of an action by] the Legislative
Budget Board does not [to] adopt a maximum permissible amount of
appropriations of state tax revenues not dedicated by the
constitution that may be appropriated for the next biennium [a
spending limit] as provided by this section, the maximum
permissible [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 may
[could] be appropriated for the next biennium considered adopted
under this subchapter is [within the limit established by the
estimated rate of growth in the state's economy shall be] the same
as the level of those appropriations for the current biennium.
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 making the determinations [calculations].
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.
Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
authorized by majority vote of the members of the board from each
house, the Legislative Budget Board budget recommendations
relating to the proposed appropriations of 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 2. Section 316.007(a), Government Code, is amended
to read as follows:
(a) The Legislative Budget Board shall include in the
board's [its] budget recommendations the proposed maximum
permissible amount [limit] of appropriations from state tax
revenues not dedicated by the constitution.
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 this
state's economy as determined by the Legislative Budget Board under
Section 316.002(b):
(A) as finally adopted by the committee under
Section 316.005(b); or
(B) as considered adopted under Section
316.002(f) or 316.005(c).
(2) "Statutory limit on the rate of growth of
appropriations" means the lower of the rates determined by the
Legislative Budget Board under Section 316.002(c) or (d):
(A) as finally adopted by the committee under
Section 316.005(b); or
(B) as considered adopted under Section
316.002(e) or 316.005(c).
(b) Unless the legislature adopts a resolution under
Section 22(b), 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
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.
SECTION 4. The changes in law made by this Act apply only
with respect to appropriations for the state fiscal biennium
beginning September 1, 2015, and subsequent state fiscal bienniums.
SECTION 5. This Act takes effect on the 91st day after the
last day of the legislative session.