84R30821 CJC-D
By: Hancock, et al. S.B. No. 9
(Otto, Bonnen of Galveston, Ashby, Burkett,
Gonzales)
A BILL TO BE ENTITLED
AN ACT
relating to limitations on the rate of growth of appropriations for
certain categories of spending.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 316, Government Code, is amended by
adding Subchapter A-1 to read as follows:
SUBCHAPTER A-1. ADDITIONAL LIMIT ON GROWTH OF APPROPRIATIONS FROM
STATE FUNDS
Sec. 316.0101. LIMIT. In a state fiscal biennium, the rate
of growth of appropriations from all sources of revenue other than
the federal government may not exceed a rate determined as provided
under Section 316.0102(a) for each of the following categories of
spending:
(1) transportation;
(2) public primary and secondary education;
(3) higher education;
(4) health care;
(5) public safety and corrections; and
(6) other general government.
Sec. 316.0102. DUTIES OF LEGISLATIVE BUDGET BOARD.
(a) Before the Legislative Budget Board transmits the budget for
the next state fiscal biennium as prescribed by Section 322.008(c),
the board shall establish a limit on the rate of growth of
appropriations from all sources of revenue other than the federal
government for each spending category described by Section 316.0101
for that biennium, as compared to the previous state fiscal
biennium, by subtracting one from the product of:
(1) the sum of one and the estimated rate of growth in
the population served by expenditures in that spending category
during the biennium for which appropriations are made; and
(2) the sum of one and the estimated rate of inflation
in a representative set of goods and services for which
appropriations are made for that spending category during the
biennium.
(b) The board shall determine the rates described by
Subsection (a) using information available from any source the
board considers reliable.
(c) Except as provided by Subsection (d) and subject to
Subsection (g), the board shall establish for the next state fiscal
biennium a limit on the amount of appropriations from all sources of
revenue other than the federal government for each spending
category described by Section 316.0101 by multiplying the amount of
appropriations for each spending category for the then current
state fiscal biennium by the sum of one and the limit on the rate of
growth of appropriations for that spending category determined by
the board under Subsection (a).
(d) If the rate determined under Subsection (a) for any
spending category described by Section 316.0101 is a negative
number, the amount of appropriations from all sources of revenue
other than the federal government for that spending category
available for the next state fiscal biennium is the same as the
amount of those appropriations for the then current state fiscal
biennium.
(e) To ensure compliance with this subchapter, the 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
board adopts the limit on the rate of growth of appropriations from
all sources of revenue other than the federal government for that
biennium for each spending category described by Section 316.0101.
(f) In the absence of an action by the board to adopt the
limits required under this subchapter, the amount of appropriations
from all sources of revenue other than the federal government for
each spending category described by Section 316.0101 available for
the next state fiscal biennium is the same as the amount of those
appropriations for the current state fiscal biennium.
(g) Notwithstanding any other law, for purposes of
calculations used to establish, in regard to a spending category
described by Section 316.0101, the limit on the rate of growth under
Subsection (a) and the limit on the amount of appropriations as
provided under Subsection (c), if the legislature by law exempts an
appropriation from the application of this subchapter for the next
state fiscal biennium, the board shall exclude then current or
previous appropriations that, as determined by the board, are of a
nature similar to the exempted appropriation as if those similar
appropriations also had been exempted by law.
Sec. 316.0103. PUBLICATION. Before the Legislative Budget
Board approves the items of information required by Section
316.0102, the board shall publish in the Texas Register the
proposed items of information and a description of the methodology
and sources used in the calculations.
Sec. 316.0104. 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 calculations
required by Section 316.0102.
Sec. 316.0105. LIMIT ON BUDGET RECOMMENDATIONS. Unless
authorized by majority vote of the members of the Legislative
Budget Board from each house, the board's budget recommendations
relating to appropriations from all sources of revenue other than
the federal government for each spending category described by
Section 316.0101 may not exceed the limit adopted by the board under
Section 316.0102.
Sec. 316.0106. INCLUSION IN BUDGET RECOMMENDATIONS. The
Legislative Budget Board shall include in its budget
recommendations the proposed limit of appropriations from all
sources of revenue other than the federal government for each
spending category described by Section 316.0101.
Sec. 316.0107. EFFECT OF LIMIT; ENFORCEMENT. (a) The
proposed limit on appropriations from all sources of revenue other
than the federal government for each spending category described by
Section 316.0101 is binding on the legislature with respect to
those appropriations for the next state fiscal biennium unless the
legislature adopts a resolution raising the proposed limit that is
approved by a record vote of a majority of the members of each house
of the legislature. The resolution must find that an emergency
exists, identify the nature of the emergency, and specify the
amount authorized. The excess authorized under this subsection may
not exceed the amount specified in the resolution.
(b) The rules of the house of representatives and senate
shall provide for enforcement of Subsection (a).
SECTION 2. The changes in law made by this Act apply only,
as applicable, in relation to appropriations made for the state
fiscal biennium beginning September 1, 2017, and subsequent state
fiscal bienniums. Appropriations for the state fiscal biennium
that begins September 1, 2015, are governed by the law in effect at
the time those appropriations were made, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2015.