85R4924 CJC-F
By: Taylor of Collin S.B. No. 943
A BILL TO BE ENTITLED
AN ACT
relating to limitations on the 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. LIMIT. (a) The rate of growth of
appropriations in a state fiscal biennium from state tax revenues
not dedicated by the constitution may not exceed the estimated rate
of growth of the state's economy.
(b) The rate of growth of appropriations in a state fiscal
biennium from all sources of revenue, including the federal
government, may not exceed the least of the following rates,
calculated for the preceding state fiscal biennium:
(1) a rate equal to the sum of:
(A) the rate of growth of this state's
population; and
(B) the rate of monetary inflation in this state;
(2) the rate of growth of personal income of this
state's residents; or
(3) the rate of growth of this state's gross state
product.
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
Before the Legislative Budget Board transmits [submits] the budget
as prescribed by Section 322.008(c), the board shall determine
[establish]:
(1) for purposes of Section 316.001(a):
(A) the estimated rate of growth of the state's
economy from the current state fiscal biennium to the next state
fiscal biennium;
(B) [(2)] the [level of] appropriations for the
current state fiscal biennium from state tax revenues not dedicated
by the constitution; and
(C) [(3)] the amount of state tax revenues not
dedicated by the constitution that could be appropriated for the
next state fiscal biennium within the limit established under that
subsection; and
(2) for purposes of Section 316.001(b):
(A) the lesser of the rates calculated as
provided under that subsection;
(B) the appropriations for the current state
fiscal biennium from all sources of revenue, including the federal
government; and
(C) the amount of revenue from all sources,
including the federal government, that could be appropriated for
the next state fiscal biennium within the limit established under
that subsection [by the estimated rate of growth of the state's
economy].
(b) Except as otherwise provided by this subsection
[Subsection (c)], for purposes of Section 316.001(a), the board
shall determine the estimated rate of growth of the state's economy
by dividing the estimated Texas total personal income for the next
state fiscal biennium by the estimated Texas total personal income
for the current state fiscal biennium. Using standard statistical
methods, the board shall make the estimate by projecting through
the state fiscal biennium the estimated Texas total personal income
reported by the United States Department of Commerce or its
successor in function. [(c)] If a more comprehensive method
[definition] of determining 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 method for purposes of
Section 316.001(a) [definition in calculating the limit on
appropriations].
(c) For purposes of Section 316.001(b), the board shall
determine:
(1) the rate of growth of this state's population
during the preceding state fiscal biennium using the most recent
estimates published by the United States Census Bureau;
(2) the rate of monetary inflation in this state
during the preceding state fiscal biennium using the effective
consumer price index for all items for this state as determined by
the board based on information published by the Bureau of Labor
Statistics of the United States Department of Labor; and
(3) the rate of growth of personal income of this
state's residents during the preceding state fiscal biennium and
the rate of growth of this state's gross state product during the
preceding state fiscal biennium using information provided by the
Bureau of Economic Analysis of the United States Department of
Commerce.
(d) To ensure compliance with this subchapter and 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 board adopts:
(1) the limit on the rate of growth of appropriations
of state tax revenues not dedicated by the constitution under
Section 316.001(a); and
(2) the limit on the rate of growth of appropriations
from all sources of revenue, including the federal government,
under Section 316.001(b) [has been adopted as required by this
subchapter].
(e) In the absence of an action by the Legislative Budget
Board to adopt the limitations [a spending limit as] provided by
this section:
(1) for purposes of Section 316.001(a):
(A) [in Subsections (a) and (b),] the estimated
rate of growth in the state's economy from the current state fiscal
biennium to the next state fiscal biennium shall be treated as if it
were zero;[,] and
(B) 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 level of appropriations for the
current state fiscal biennium; and
(2) for purposes of Section 316.001(b):
(A) the rate of growth shall be treated as if it
were zero; and
(B) the amount of revenue from all sources,
including the federal government, that could be appropriated within
the limit established by that subsection shall be the same as the
level of appropriations for the current state fiscal biennium.
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 state fiscal biennium [of state tax revenues not dedicated
by the constitution] may not exceed the limit on appropriations of
state tax revenues not dedicated by the constitution adopted by the
committee under Section 316.005 and may not exceed the limit on
appropriations of revenue from all sources, including the federal
government, adopted by the committee under that section [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:
(1) the proposed limit of appropriations from state
tax revenues not dedicated by the constitution; and
(2) the proposed limit of appropriations from all
sources of revenue, including the federal government.
SECTION 3. Section 316.008(a), Government Code, is amended
to read as follows:
(a) Unless the legislature adopts a resolution under
Section 22, Article VIII, [Section 22(b), of the] Texas
Constitution, raising the proposed limit on appropriations from
state tax revenues not dedicated by the constitution, the proposed
limit is binding on the legislature with respect to all
appropriations for the next state fiscal biennium made from those
[state tax] revenues [not dedicated by the constitution]. The
proposed limit on appropriations from all sources of revenue,
including the federal government, is binding on the legislature
with respect to all appropriations for the next state fiscal
biennium made from those revenues unless the legislature adopts a
resolution raising the proposed limit that is approved by a record
vote of two-thirds of the members of each house of the legislature.
A resolution described by this subsection 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.
SECTION 4. (a) The changes in law made by this Act apply
only in relation to an appropriation made for a state fiscal
biennium beginning on or after September 1, 2019.
(b) Appropriations for the state fiscal biennium that
begins September 1, 2017, are governed by Subchapter A, Chapter
316, Government Code, as that subchapter existed 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 September 1, 2017.