Texas 2015 - 84th Regular

Texas Senate Bill SB137 Compare Versions

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11 84R1121 JJT-D
22 By: Perry S.B. No. 137
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the maximum rate of growth of appropriations.
88 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
99 SECTION 1. Sections 316.001, 316.002, 316.003, 316.004, and
1010 316.006, Government Code, are amended to read as follows:
1111 Sec. 316.001. APPROPRIATIONS LIMIT; RATE OF GROWTH. (a)
1212 The amount of appropriations from the state treasury for a fiscal
1313 biennium may not exceed the amount determined in accordance with
1414 this subchapter.
1515 (b) The maximum rate of growth of appropriations from the
1616 state treasury for a fiscal biennium, as compared to the preceding
1717 fiscal [in a] biennium, is the lesser of the following rates:
1818 (1) [from state tax revenues not dedicated by the
1919 constitution may not exceed] the estimated rate of growth of
2020 personal income of this [the] state's residents; or
2121 (2) a rate equal to the sum of:
2222 (A) the estimated biennial rate of growth of this
2323 state's population; and
2424 (B) the estimated biennial rate of monetary
2525 inflation in this state [economy].
2626 Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD.
2727 (a) Before the Legislative Budget Board submits the budget as
2828 prescribed by Section 322.008(c), the board shall determine
2929 [establish]:
3030 (1) the estimated rate of growth of personal income of
3131 this [the] state's residents [economy] from the current fiscal
3232 biennium to the next fiscal biennium, determined as provided by
3333 Subsection (b);
3434 (2) a rate equal to the sum of:
3535 (A) the estimated biennial rate of growth of this
3636 state's population, determined as provided by Subsection (c); and
3737 (B) the estimated biennial rate of monetary
3838 inflation in this state, determined as provided by Subsection (d);
3939 (3) the amount [level] of appropriations for the
4040 current fiscal biennium [from state tax revenues not dedicated by
4141 the constitution]; and
4242 (4) [(3)] the maximum permissible amount of
4343 appropriations of revenue from the state treasury [state tax
4444 revenues not dedicated by the constitution that could be
4545 appropriated] for the next fiscal biennium [within the limit
4646 established] by multiplying the total amount of appropriations for
4747 the current fiscal biennium by the sum of one and the maximum rate
4848 of growth of appropriations as provided by Section 316.001 [the
4949 estimated rate of growth of the state's economy].
5050 (b) The Legislative Budget Board [Except as provided by
5151 Subsection (c), the board] shall determine the estimated rate of
5252 growth of personal income of this [the] state's residents [economy]
5353 by dividing the estimated Texas total personal income for the next
5454 fiscal biennium by the estimated Texas total personal income for
5555 the current fiscal biennium. Using standard statistical methods,
5656 the board shall make the estimate by projecting through the fiscal
5757 biennium the estimated Texas total personal income reported by the
5858 United States Department of Commerce or its successor in function.
5959 (c) The Legislative Budget Board shall determine the
6060 estimated biennial rate of growth of this state's population
6161 according to estimates provided by the state demographer. [If a
6262 more comprehensive definition of the rate of growth of the state's
6363 economy is developed and is approved by the committee established
6464 by Section 316.005, the board may use that definition in
6565 calculating the limit on appropriations.]
6666 (d) The Legislative Budget Board shall determine the
6767 estimated biennial rate of monetary inflation in this state based
6868 on the estimated rate of change during the preceding fiscal
6969 biennium of the effective consumer price index for this state.
7070 (e) To ensure compliance with Section 22, Article VIII,
7171 [Section 22, of the] Texas Constitution, the Legislative Budget
7272 Board may not transmit in any form to the governor or the
7373 legislature the budget as prescribed by Section 322.008(c) or the
7474 general appropriations bill as prescribed by Section 322.008(d)
7575 until the maximum permissible amount [limit on the rate of growth]
7676 of appropriations for the next fiscal biennium has been adopted as
7777 required by this subchapter.
7878 (f) [(e)] In the absence of an action by the Legislative
7979 Budget Board to adopt a maximum permissible amount of
8080 appropriations for the next fiscal biennium [spending limit] as
8181 provided by this section, the maximum permissible amount of
8282 appropriations for the next fiscal biennium is [in Subsections (a)
8383 and (b), the estimated rate of growth in the state's economy from
8484 the current biennium to the next biennium shall be treated as if it
8585 were zero, and the amount of state tax revenues not dedicated by the
8686 constitution that could be appropriated within the limit
8787 established by the estimated rate of growth in the state's economy
8888 shall be] the same as the amount [level] of those appropriations for
8989 the current fiscal biennium, determined under Subsection (a)(3).
9090 Sec. 316.003. PUBLICATION. Before the Legislative Budget
9191 Board approves the items of information required by Section
9292 316.002, the board shall publish in the Texas Register the proposed
9393 items of information and a description of the methodology and
9494 sources used in the determinations [calculations].
9595 Sec. 316.004. PUBLIC HEARING. Not later than December 1 of
9696 each even-numbered year, the Legislative Budget Board shall hold a
9797 public hearing to solicit testimony regarding the proposed items of
9898 information and the methodology used in making the determinations
9999 [calculations] required by Section 316.002.
100100 Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
101101 authorized by majority vote of the members of the board from each
102102 house, the Legislative Budget Board budget recommendations
103103 relating to the proposed appropriations from the state treasury for
104104 the next fiscal biennium [of state tax revenues not dedicated by the
105105 constitution] may not exceed the maximum permissible amount of
106106 appropriations [limit] adopted by the committee under Section
107107 316.005.
108108 SECTION 2. Section 316.007(a), Government Code, is amended
109109 to read as follows:
110110 (a) The Legislative Budget Board shall include in its budget
111111 recommendations the proposed maximum permissible amount [limit] of
112112 appropriations from the state treasury for the next fiscal biennium
113113 [from state tax revenues not dedicated by the constitution].
114114 SECTION 3. Section 316.008(a), Government Code, is amended
115115 to read as follows:
116116 (a) Unless the legislature adopts a resolution under
117117 Section 22(e), Article VIII, [Section 22(b), of the] Texas
118118 Constitution, raising the proposed maximum permissible amount of
119119 [limit on] appropriations for the next fiscal biennium, the
120120 proposed maximum permissible amount [limit] is binding on the
121121 legislature with respect to all appropriations for the next fiscal
122122 biennium made from the state treasury [state tax revenues not
123123 dedicated by the constitution].
124124 SECTION 4. (a) The changes in law made by this Act apply
125125 only in relation to appropriations made for the state fiscal
126126 biennium beginning September 1, 2017, and subsequent state fiscal
127127 bienniums.
128128 (b) Appropriations for the state fiscal biennium that
129129 begins September 1, 2015, are governed by Subchapter A, Chapter
130130 316, Government Code, as that subchapter provided immediately
131131 before the effective date of this Act, and the former law is
132132 continued in effect for that purpose.
133133 SECTION 5. This Act takes effect on the effective date of
134134 the constitutional amendment proposed by the 84th Legislature,
135135 Regular Session, 2015, regarding the maximum amount of
136136 appropriations for a state fiscal biennium. If that amendment is
137137 not approved by the voters, this Act has no effect.