By: Williams, Nichols S.B. No. 7
A BILL TO BE ENTITLED
AN ACT
relating to the constitutional limit on the rate of growth of
appropriations of revenue.
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 all sources of
revenue other than the federal government [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 next state fiscal biennium and the estimated
rate of monetary inflation or deflation in this state during that
next 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 all sources of
revenue other than the federal government 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 from all sources of revenue other than the federal
government 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 next state fiscal biennium, expressed as a
percentage; and
(B) the estimated rate of monetary inflation or
deflation in this state during the next 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 all sources of revenue other
than the federal government [state tax revenues not dedicated by
the constitution]; and
(3) the amount of [state tax] revenues from all
sources of revenue other than the federal government [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 all sources of revenue other than the federal
government may not exceed the amount of appropriations from those
sources of revenue 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
revenue from all sources of revenue other than the federal
government [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 sources of revenue for the current
biennium.
SECTION 2. Section 316.006, Government Code, is amended to
read as follows:
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 revenue from all sources
of revenue other than the federal government [state tax revenues
not dedicated by the constitution] may not exceed the limit adopted
by the committee under Section 316.005.
SECTION 3. Subsection (a), Section 316.007, Government
Code, is amended to read as follows:
(a) The Legislative Budget Board shall include in its budget
recommendations the proposed limit of appropriations of revenue
from all sources of revenue other than the federal government [from
state tax revenues not dedicated by the constitution].
SECTION 4. Subsection (a), Section 316.008, 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 all
sources of revenue other than the federal government [state tax
revenues not dedicated by the constitution].
SECTION 5. 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 6. This Act takes effect on the date on which the
constitutional amendment proposed by the 83rd Legislature, 1st
Called Session, 2013, concerning the limitation on the rate of
growth of appropriations of revenue takes effect. If that
amendment is not approved by the voters, this Act has no effect.