Relating to the constitutional limit on the rate of growth of appropriations.
Impact
If enacted, this bill would have significant implications for how state budgets are formulated and executed. The Legislative Budget Board would bear the responsibility for calculating these rates and establishing maximum allowable rates of growth for appropriations. The amendment would not only guide future budget recommendations but also enforce a cap on state spending, theoretically ensuring that growth in state expenditures is aligned with both population growth and economic realities, which could promote fiscal responsibility.
Summary
House Bill 2981 aims to amend the constitutional limit on the rate of growth of state appropriations based on certain economic factors. Specifically, the bill proposes that in any state fiscal biennium, the rate of growth of appropriations subject to certification by the comptroller should not exceed a formula that combines the rate of population change and the rate of inflation or deflation in Texas during the preceding biennium. This adjustment seeks to create a more dynamic approach to budgeting that reflects both demographic shifts and economic conditions.
Contention
As with similar legislation, there are potential points of contention surrounding HB 2981. Proponents argue that by tying appropriations growth to population and inflation rates, the bill fosters a responsible fiscal approach that prevents excessive government spending. Critics, however, may contend that such limitations could restrict vital funding for essential public services that may need more resources than population and inflation metrics alone would indicate. As a result, this bill highlights the ongoing debate in Texas concerning the balance between responsible budgeting and the need for adequate funding for public services.
Relating to an annual state budget and legislative budget sessions in even-numbered years and to political contributions made during a legislative session.
Proposing a constitutional amendment excepting certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.
Proposing a constitutional amendment excepting certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.
Proposing a constitutional amendment excepting certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.
Proposing a constitutional amendment excepting certain appropriations to pay for tax relief from the constitutional limitation on the rate of growth of appropriations.
Proposing a constitutional amendment to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads, to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts, and to except certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.
Proposing a constitutional amendment to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads, to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts, and to except certain appropriations to pay for school district ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.
Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of real property for ad valorem tax purposes and to except certain appropriations to pay for ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations.
Proposing a constitutional amendment to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads, to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts, to establish the property tax relief to rental households fund and authorize the legislature to provide payments to rental households from that fund based on a proportion of rent paid, and to except certain appropriations to pay for school district ad valorem tax relief and property tax relief payments to rental households from the constitutional limitation on the rate of growth of appropriations.