84R1121 JJT-D
By: Perry S.B. No. 137
A BILL TO BE ENTITLED
AN ACT
relating to the maximum rate of growth of appropriations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 316.001, 316.002, 316.003, 316.004, and
316.006, Government Code, are amended to read as follows:
Sec. 316.001. APPROPRIATIONS LIMIT; RATE OF GROWTH. (a)
The amount of appropriations from the state treasury for a fiscal
biennium may not exceed the amount determined in accordance with
this subchapter.
(b) The maximum rate of growth of appropriations from the
state treasury for a fiscal biennium, as compared to the preceding
fiscal [in a] biennium, is the lesser of the following rates:
(1) [from state tax revenues not dedicated by the
constitution may not exceed] the estimated rate of growth of
personal income of this [the] state's residents; or
(2) a rate equal to the sum of:
(A) the estimated biennial rate of growth of this
state's population; and
(B) the estimated biennial rate of monetary
inflation in this state [economy].
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD.
(a) Before the Legislative Budget Board submits the budget as
prescribed by Section 322.008(c), the board shall determine
[establish]:
(1) the estimated rate of growth of personal income of
this [the] state's residents [economy] from the current fiscal
biennium to the next fiscal biennium, determined as provided by
Subsection (b);
(2) a rate equal to the sum of:
(A) the estimated biennial rate of growth of this
state's population, determined as provided by Subsection (c); and
(B) the estimated biennial rate of monetary
inflation in this state, determined as provided by Subsection (d);
(3) the amount [level] of appropriations for the
current fiscal biennium [from state tax revenues not dedicated by
the constitution]; and
(4) [(3)] the maximum permissible amount of
appropriations of revenue from the state treasury [state tax
revenues not dedicated by the constitution that could be
appropriated] for the next fiscal biennium [within the limit
established] by multiplying the total amount of appropriations for
the current fiscal biennium by the sum of one and the maximum rate
of growth of appropriations as provided by Section 316.001 [the
estimated rate of growth of the state's economy].
(b) The Legislative Budget Board [Except as provided by
Subsection (c), the board] shall determine the estimated rate of
growth of personal income of this [the] state's residents [economy]
by dividing the estimated Texas total personal income for the next
fiscal biennium by the estimated Texas total personal income for
the current fiscal biennium. Using standard statistical methods,
the board shall make the estimate by projecting through the fiscal
biennium the estimated Texas total personal income reported by the
United States Department of Commerce or its successor in function.
(c) The Legislative Budget Board shall determine the
estimated biennial rate of growth of this state's population
according to estimates provided by the state demographer. [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) The Legislative Budget Board shall determine the
estimated biennial rate of monetary inflation in this state based
on the estimated rate of change during the preceding fiscal
biennium of the effective consumer price index for this state.
(e) 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 maximum permissible amount [limit on the rate of growth]
of appropriations for the next fiscal biennium has been adopted as
required by this subchapter.
(f) [(e)] In the absence of an action by the Legislative
Budget Board to adopt a maximum permissible amount of
appropriations for the next fiscal biennium [spending limit] as
provided by this section, the maximum permissible amount of
appropriations for the next fiscal biennium is [in Subsections (a)
and (b), the estimated rate of growth in the state's economy from
the current biennium to the next biennium shall be treated as if it
were zero, and the amount of state tax revenues not dedicated by the
constitution that could be appropriated within the limit
established by the estimated rate of growth in the state's economy
shall be] the same as the amount [level] of those appropriations for
the current fiscal biennium, determined under Subsection (a)(3).
Sec. 316.003. PUBLICATION. Before the Legislative Budget
Board approves the items of information required by Section
316.002, the board shall publish in the Texas Register the proposed
items of information and a description of the methodology and
sources used in the determinations [calculations].
Sec. 316.004. PUBLIC HEARING. Not later than December 1 of
each even-numbered year, the Legislative Budget Board shall hold a
public hearing to solicit testimony regarding the proposed items of
information and the methodology used in making the determinations
[calculations] required by Section 316.002.
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 from the state treasury for
the next fiscal biennium [of state tax revenues not dedicated by the
constitution] may not exceed the maximum permissible amount of
appropriations [limit] adopted by the committee under Section
316.005.
SECTION 2. Section 316.007(a), Government Code, is amended
to read as follows:
(a) The Legislative Budget Board shall include in its budget
recommendations the proposed maximum permissible amount [limit] of
appropriations from the state treasury for the next fiscal biennium
[from state tax revenues not dedicated by the constitution].
SECTION 3. Section 316.008(a), Government Code, is amended
to read as follows:
(a) Unless the legislature adopts a resolution under
Section 22(e), Article VIII, [Section 22(b), of the] Texas
Constitution, raising the proposed maximum permissible amount of
[limit on] appropriations for the next fiscal biennium, the
proposed maximum permissible amount [limit] is binding on the
legislature with respect to all appropriations for the next fiscal
biennium made from the state treasury [state tax revenues not
dedicated by the constitution].
SECTION 4. (a) The changes in law made by this Act apply
only in relation to appropriations made for the state fiscal
biennium beginning September 1, 2017, and subsequent state fiscal
bienniums.
(b) Appropriations for the state fiscal biennium that
begins September 1, 2015, are governed by Subchapter A, Chapter
316, Government Code, as that subchapter provided immediately
before the effective date of this Act, and the former law is
continued in effect for that purpose.
SECTION 5. This Act takes effect on the effective date of
the constitutional amendment proposed by the 84th Legislature,
Regular Session, 2015, regarding the maximum amount of
appropriations for a state fiscal biennium. If that amendment is
not approved by the voters, this Act has no effect.