Texas House Bill HB1697

Texas 2015 - 84th Regular

Caption

Relating to the limitation on the rate of growth of appropriations.

Impact

The implications of HB 1697 on Texas state laws would be significant, as it would modify existing statutes concerning budgetary processes, establishing a clear ceiling on how much the state can grow its budget based on revenue derived from state taxes. This bill is considered a mechanism for controlling state spending and puts an emphasis on aligning budget increases with measurable economic indicators. By doing so, it aims to prevent unchecked spending growth during economic expansions, thereby possibly reducing the risk of future budget deficits.

Summary

House Bill 1697 aims to enforce strict limitations on the growth of appropriations from state tax revenues that are not constitutionally dedicated. The bill specifies that the rate of growth of such appropriations in any given state fiscal biennium cannot exceed the lowest of three determined rates: the estimated rate of growth of the state’s economy, a combined rate that reflects both population growth and monetary inflation, or the rate of growth of the state's gross state product. This creates a more predictable budgetary environment that is intended to promote fiscal responsibility and stability in state budgeting practices.

Contention

However, the bill has generated debate among lawmakers and stakeholders regarding its potential impact on state services and flexibility. Supporters argue that setting these limits on growth will lead to more responsible governance and ensure that taxpayer money is spent wisely. Critics, on the other hand, caution that such restrictions may inhibit the state's ability to respond effectively to economic downturns or urgent public needs, ultimately constraining funding for essential services. This ideological divide highlights concerns about balancing fiscal prudence with necessary governance provisions.