Texas Senate Bill SB1891

Texas 2019 - 86th Regular

Caption

Relating to a limit on the rate of growth of certain appropriations.

Impact

If passed, SB1891 would significantly alter the legislative budget development process in Texas. The Legislative Budget Board would be required to establish limits on appropriations that could lead to stabilizing state financial planning and aligning expenditures more closely with economic conditions. By instituting such constraints, the bill aims to enhance fiscal responsibility, potentially leading to budget surpluses which could be redirected towards areas like education, infrastructure, or emergency reserves. However, critics raise concerns about the impact of these limits on funding for essential public services, especially during economic downturns when increased appropriations might be necessary to address community needs.

Summary

SB1891 is a legislative proposal aimed at instituting a limit on the rate of growth of certain appropriations from state tax revenues that are not constitutionally dedicated. The bill seeks to align the growth of state appropriations with the estimated growth of the state's economy and population. Specifically, the bill stipulates that appropriations from state tax revenues cannot exceed the estimated rate of economic growth and that consolidated general revenue appropriations cannot grow faster than the sum of the average biennial rate of population growth and the average biennial inflation rate. This new regulatory framework represents a shift towards fiscal conservatism in Texas legislation by imposing stricter controls on state spending.

Sentiment

The sentiment surrounding SB1891 is mixed, reflecting a broader ideological divide about fiscal management in state governance. Proponents, mainly from the Republican side, argue that limiting appropriations is a necessary step towards responsible governance that would curb wasteful spending and promote a healthier economy. Conversely, opponents express concern that such limits could hamper the state's ability to respond dynamically to crises, like natural disasters or economic recessions, by restricting the necessary flexibility in state funding. This highlights an ongoing debate about the balance between fiscal restraint and the need for proactive government intervention.

Contention

Key points of contention around SB1891 include its efficacy in maintaining essential public services while restricting state spending. Critics argue that while it aims to prevent overspending, it could inadvertently lead to underfunding critical areas without adequate provisions for emergency allocation. Moreover, there are concerns about the transparency and methodology of the Legislative Budget Board in determining acceptable rates of growth and how these decisions may disproportionately affect certain regions or demographics within Texas. As discussions continue, the bill represents a critical examination of how Texas manages its fiscal responsibilities in light of changing economic conditions.