Texas Senate Bill SB137

Texas 2015 - 84th Regular

• Filed: 11/10/14

Caption

Relating to the maximum rate of growth of appropriations.

Impact

If passed, SB137 would significantly impact how the Legislative Budget Board calculates the permissible amounts of appropriations from the state treasury. The requirement that these amounts be based on personal income growth or demographic trends could limit the pace at which state programs and services grow financially. Consequently, some areas may see slower growth in funding, particularly in sectors heavily reliant on state appropriations, such as education and public health.

Summary

SB137 addresses the maximum rate of growth of state appropriations for fiscal bienniums in Texas. The bill amends several sections of the Government Code to stipulate that appropriations cannot exceed the lesser of either the estimated growth of personal income of residents or the sum of the estimated growth of the state's population and monetary inflation. This framework aims to establish a more controlled budget process, promoting fiscal responsibility and ensuring that state expenditures align with the economic conditions of Texas residents.

Contention

Debate surrounding SB137 is expected to center on the balance between fiscal restraint and the necessity of adequately funding essential state services. Proponents argue that this bill will enforce a prudent budgetary approach during times of economic uncertainty, aligning state spending with the financial capabilities of its citizens. However, opponents might contend that such limits could disadvantage local governments and services needing more robust financial support, fearing it could exacerbate existing inequalities across regions.

Notable_points

The implementation of this bill will only affect appropriations starting with the state fiscal biennium beginning September 1, 2017, ensuring that prior fiscal cycles remain governed by existing laws. Additionally, the bill sets a procedural mechanism, including public hearings and required publication of budgetary calculations, intended to maintain transparency and facilitate public engagement in the legislative budgeting process.