85R1076 CJC-D
By: Leach H.B. No. 613
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 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 from one state fiscal biennium to
the next state fiscal biennium for each spending category described
by Section 316.0101 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 next state fiscal biennium; 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 next
state fiscal biennium.
(b) The board shall estimate the rates described by
Subsection (a) based on information available from the United
States Census Bureau and the Bureau of Labor Statistics of the
United States Department of Labor.
(c) Except as provided by Subsection (d) and subject to
Subsection (g), the board shall establish the amount of
appropriations from all sources of revenue other than the federal
government available for the next state fiscal biennium for each
spending category described by Section 316.0101 by multiplying the
amount of appropriations for each spending category for the 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 available for the next state
fiscal biennium for that spending category is the same as the amount
of those appropriations for the 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 the
next state fiscal 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 Subsection (a), the amount of appropriations
from all sources of revenue other than the federal government
available for the next state fiscal biennium for each spending
category described by Section 316.0101 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 of
appropriations under Subsection (a) and the amount of
appropriations available for the next state fiscal biennium 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 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 the next state fiscal biennium for each
spending category described by Section 316.0101 may not exceed the
amount of appropriations established for that spending category
under Section 316.0102(c).
Sec. 316.0106. INCLUSION IN BUDGET RECOMMENDATIONS. The
Legislative Budget Board shall include in its budget
recommendations, for each spending category described by Section
316.0101:
(1) the limit on the rate of growth of appropriations
from all sources of revenue other than the federal government for
that spending category for the next state fiscal biennium, as
determined under Section 316.0102(a); and
(2) the amount of appropriations from all sources of
revenue other than the federal government available for that
spending category for the next state fiscal biennium, as determined
under Section 316.0102(c).
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, 2019, and subsequent state
fiscal bienniums. Appropriations for the state fiscal biennium
that begins September 1, 2017, 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, 2017.