Texas House Bill HB1025

Texas 2017 - 85th Regular

Caption

Relating to the constitutional limit on the rate of growth of appropriations.

Impact

If enacted, HB 1025 would significantly affect how the state's budget is developed and adopted by the Legislature. The Legislative Budget Board will be tasked with determining the proposed limits for appropriations, which would be binding unless an emergency resolution is passed by a three-fifths majority in each house of the Legislature. This change aims to prevent excessive growth in state spending that outpaces economic growth, theoretically ensuring that the state's financial commitments remain manageable and sustainable over the long term.

Summary

House Bill 1025 aims to establish a constitutional limit on the rate of growth of state appropriations. It stipulates that the rate of growth of appropriations from state tax revenues not dedicated by the Texas Constitution cannot exceed the estimated rate of growth of the state's economy. This estimated rate is determined based on the average biennial rate of growth of the state's population, adjusted for inflation. The legislation seeks to ensure that state spending aligns with economic growth, thereby promoting fiscal responsibility within the state's budgeting process.

Contention

The bill may face contention as it places strict limitations on budget growth, potentially impacting funding for various state programs and services. Proponents argue that it will strengthen fiscal discipline and promote economic accountability, while opponents may raise concerns about the flexibility of funding essential services if economic conditions or population needs change dramatically. The requirement for a supermajority to raise spending limits can also lead to political hurdles when addressing budgetary needs during economic downturns or emergencies.