1 | 1 | | 84R1121 JJT-D |
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2 | 2 | | By: Perry S.B. No. 137 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the maximum rate of growth of appropriations. |
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8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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9 | 9 | | SECTION 1. Sections 316.001, 316.002, 316.003, 316.004, and |
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10 | 10 | | 316.006, Government Code, are amended to read as follows: |
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11 | 11 | | Sec. 316.001. APPROPRIATIONS LIMIT; RATE OF GROWTH. (a) |
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12 | 12 | | The amount of appropriations from the state treasury for a fiscal |
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13 | 13 | | biennium may not exceed the amount determined in accordance with |
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14 | 14 | | this subchapter. |
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15 | 15 | | (b) The maximum rate of growth of appropriations from the |
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16 | 16 | | state treasury for a fiscal biennium, as compared to the preceding |
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17 | 17 | | fiscal [in a] biennium, is the lesser of the following rates: |
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18 | 18 | | (1) [from state tax revenues not dedicated by the |
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19 | 19 | | constitution may not exceed] the estimated rate of growth of |
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20 | 20 | | personal income of this [the] state's residents; or |
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21 | 21 | | (2) a rate equal to the sum of: |
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22 | 22 | | (A) the estimated biennial rate of growth of this |
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23 | 23 | | state's population; and |
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24 | 24 | | (B) the estimated biennial rate of monetary |
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25 | 25 | | inflation in this state [economy]. |
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26 | 26 | | Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. |
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27 | 27 | | (a) Before the Legislative Budget Board submits the budget as |
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28 | 28 | | prescribed by Section 322.008(c), the board shall determine |
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29 | 29 | | [establish]: |
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30 | 30 | | (1) the estimated rate of growth of personal income of |
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31 | 31 | | this [the] state's residents [economy] from the current fiscal |
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32 | 32 | | biennium to the next fiscal biennium, determined as provided by |
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33 | 33 | | Subsection (b); |
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34 | 34 | | (2) a rate equal to the sum of: |
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35 | 35 | | (A) the estimated biennial rate of growth of this |
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36 | 36 | | state's population, determined as provided by Subsection (c); and |
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37 | 37 | | (B) the estimated biennial rate of monetary |
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38 | 38 | | inflation in this state, determined as provided by Subsection (d); |
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39 | 39 | | (3) the amount [level] of appropriations for the |
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40 | 40 | | current fiscal biennium [from state tax revenues not dedicated by |
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41 | 41 | | the constitution]; and |
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42 | 42 | | (4) [(3)] the maximum permissible amount of |
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43 | 43 | | appropriations of revenue from the state treasury [state tax |
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44 | 44 | | revenues not dedicated by the constitution that could be |
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45 | 45 | | appropriated] for the next fiscal biennium [within the limit |
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46 | 46 | | established] by multiplying the total amount of appropriations for |
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47 | 47 | | the current fiscal biennium by the sum of one and the maximum rate |
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48 | 48 | | of growth of appropriations as provided by Section 316.001 [the |
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49 | 49 | | estimated rate of growth of the state's economy]. |
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50 | 50 | | (b) The Legislative Budget Board [Except as provided by |
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51 | 51 | | Subsection (c), the board] shall determine the estimated rate of |
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52 | 52 | | growth of personal income of this [the] state's residents [economy] |
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53 | 53 | | by dividing the estimated Texas total personal income for the next |
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54 | 54 | | fiscal biennium by the estimated Texas total personal income for |
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55 | 55 | | the current fiscal biennium. Using standard statistical methods, |
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56 | 56 | | the board shall make the estimate by projecting through the fiscal |
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57 | 57 | | biennium the estimated Texas total personal income reported by the |
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58 | 58 | | United States Department of Commerce or its successor in function. |
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59 | 59 | | (c) The Legislative Budget Board shall determine the |
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60 | 60 | | estimated biennial rate of growth of this state's population |
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61 | 61 | | according to estimates provided by the state demographer. [If a |
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62 | 62 | | more comprehensive definition of the rate of growth of the state's |
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63 | 63 | | economy is developed and is approved by the committee established |
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64 | 64 | | by Section 316.005, the board may use that definition in |
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65 | 65 | | calculating the limit on appropriations.] |
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66 | 66 | | (d) The Legislative Budget Board shall determine the |
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67 | 67 | | estimated biennial rate of monetary inflation in this state based |
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68 | 68 | | on the estimated rate of change during the preceding fiscal |
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69 | 69 | | biennium of the effective consumer price index for this state. |
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70 | 70 | | (e) To ensure compliance with Section 22, Article VIII, |
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71 | 71 | | [Section 22, of the] Texas Constitution, the Legislative Budget |
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72 | 72 | | Board may not transmit in any form to the governor or the |
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73 | 73 | | legislature the budget as prescribed by Section 322.008(c) or the |
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74 | 74 | | general appropriations bill as prescribed by Section 322.008(d) |
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75 | 75 | | until the maximum permissible amount [limit on the rate of growth] |
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76 | 76 | | of appropriations for the next fiscal biennium has been adopted as |
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77 | 77 | | required by this subchapter. |
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78 | 78 | | (f) [(e)] In the absence of an action by the Legislative |
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79 | 79 | | Budget Board to adopt a maximum permissible amount of |
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80 | 80 | | appropriations for the next fiscal biennium [spending limit] as |
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81 | 81 | | provided by this section, the maximum permissible amount of |
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82 | 82 | | appropriations for the next fiscal biennium is [in Subsections (a) |
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83 | 83 | | and (b), the estimated rate of growth in the state's economy from |
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84 | 84 | | the current biennium to the next biennium shall be treated as if it |
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85 | 85 | | were zero, and the amount of state tax revenues not dedicated by the |
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86 | 86 | | constitution that could be appropriated within the limit |
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87 | 87 | | established by the estimated rate of growth in the state's economy |
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88 | 88 | | shall be] the same as the amount [level] of those appropriations for |
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89 | 89 | | the current fiscal biennium, determined under Subsection (a)(3). |
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90 | 90 | | Sec. 316.003. PUBLICATION. Before the Legislative Budget |
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91 | 91 | | Board approves the items of information required by Section |
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92 | 92 | | 316.002, the board shall publish in the Texas Register the proposed |
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93 | 93 | | items of information and a description of the methodology and |
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94 | 94 | | sources used in the determinations [calculations]. |
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95 | 95 | | Sec. 316.004. PUBLIC HEARING. Not later than December 1 of |
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96 | 96 | | each even-numbered year, the Legislative Budget Board shall hold a |
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97 | 97 | | public hearing to solicit testimony regarding the proposed items of |
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98 | 98 | | information and the methodology used in making the determinations |
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99 | 99 | | [calculations] required by Section 316.002. |
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100 | 100 | | Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless |
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101 | 101 | | authorized by majority vote of the members of the board from each |
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102 | 102 | | house, the Legislative Budget Board budget recommendations |
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103 | 103 | | relating to the proposed appropriations from the state treasury for |
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104 | 104 | | the next fiscal biennium [of state tax revenues not dedicated by the |
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105 | 105 | | constitution] may not exceed the maximum permissible amount of |
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106 | 106 | | appropriations [limit] adopted by the committee under Section |
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107 | 107 | | 316.005. |
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108 | 108 | | SECTION 2. Section 316.007(a), Government Code, is amended |
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109 | 109 | | to read as follows: |
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110 | 110 | | (a) The Legislative Budget Board shall include in its budget |
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111 | 111 | | recommendations the proposed maximum permissible amount [limit] of |
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112 | 112 | | appropriations from the state treasury for the next fiscal biennium |
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113 | 113 | | [from state tax revenues not dedicated by the constitution]. |
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114 | 114 | | SECTION 3. Section 316.008(a), Government Code, is amended |
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115 | 115 | | to read as follows: |
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116 | 116 | | (a) Unless the legislature adopts a resolution under |
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117 | 117 | | Section 22(e), Article VIII, [Section 22(b), of the] Texas |
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118 | 118 | | Constitution, raising the proposed maximum permissible amount of |
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119 | 119 | | [limit on] appropriations for the next fiscal biennium, the |
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120 | 120 | | proposed maximum permissible amount [limit] is binding on the |
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121 | 121 | | legislature with respect to all appropriations for the next fiscal |
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122 | 122 | | biennium made from the state treasury [state tax revenues not |
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123 | 123 | | dedicated by the constitution]. |
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124 | 124 | | SECTION 4. (a) The changes in law made by this Act apply |
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125 | 125 | | only in relation to appropriations made for the state fiscal |
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126 | 126 | | biennium beginning September 1, 2017, and subsequent state fiscal |
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127 | 127 | | bienniums. |
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128 | 128 | | (b) Appropriations for the state fiscal biennium that |
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129 | 129 | | begins September 1, 2015, are governed by Subchapter A, Chapter |
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130 | 130 | | 316, Government Code, as that subchapter provided immediately |
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131 | 131 | | before the effective date of this Act, and the former law is |
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132 | 132 | | continued in effect for that purpose. |
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133 | 133 | | SECTION 5. This Act takes effect on the effective date of |
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134 | 134 | | the constitutional amendment proposed by the 84th Legislature, |
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135 | 135 | | Regular Session, 2015, regarding the maximum amount of |
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136 | 136 | | appropriations for a state fiscal biennium. If that amendment is |
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137 | 137 | | not approved by the voters, this Act has no effect. |
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