Texas 2025 - 89th Regular

Texas House Bill HB5449 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: Toth H.B. No. 5449
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to a limitation on the rate of growth in state and local
7	9		appropriations with the return of over-collected taxpayer money by
8	10		reducing taxes.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Sections 316.001, 316.002, and 316.006,
11	13		Government Code, are amended to read as follows:
12	14		Sec. 316.001. (a) For purposes of this section, "all funds
13	15		appropriations" means appropriations from:
14	16		(1) the general revenue fund in the state or local treasury;
15	17		(2) a dedicated account in the general revenue fund in the
16	18		state or local treasury;
17	19		(3) a general revenue-related fund in the state treasury as
18	20		identified in the biennial statement required of the comptroller
19	21		under Section 49a, Article III, Texas Constitution; and
20	22		(4) the other state funds, other local funds, and federal
21	23		funds in the state or local treasury.
22	24		(b) In each state fiscal biennium, the rate of growth of
23	25		appropriations from all revenue sources, and each local fiscal year
24	26		may not exceed the average taxpayer's ability to pay for the cost of
25	27		funding government.
26	28		(c) The rates of growth of state funds appropriations in a
27	29		state fiscal biennium or political subdivisions shall not exceed
28	30		the estimated prior three-year average annual rate of growth of
29	31		this state's population during the three calendar years preceding
30	32		the regular session for which appropriations are made, adjusted by
31	33		the estimated prior three-year average annual rate of inflation
32	34		during the same period, as determined under Section 316.002.
33	35		(d) The Legislative Budget Board shall determine the rates
34	36		described by Subsection (e) using the most recent information
35	37		available from the United States Bureau of Labor Statistics and the
36	38		United States Census Bureau.
37	39		Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
38	40		Before the Legislative Budget Board transmits the budget for the
39	41		next state fiscal biennium as prescribed by Section 322.008(c), the
40	42		board shall establish:
41	43		(1) the limit on the rate of growth of appropriations
42	44		from state tax revenues for that state fiscal biennium, as compared
43	45		to the previous state fiscal biennium, and the limit on the rate of
44	46		growth of appropriations for political subdivisions for that local
45	47		fiscal year based on:
46	48		(2) the limit on the rate of growth of all funds
47	49		appropriations for that state fiscal biennium or political
48	50		subdivision fiscal year, as compared to the previous period, by
49	51		summing:
50	52		(A) the prior three-year average annual rate of
51	53		growth of this state's population preceding the regular session for
52	54		which appropriations are made; and
53	55		(B) the prior three-year average annual rate of
54	56		inflation using the chained-consumer price index preceding the
55	57		regular session before appropriations. (d) Except as provided by
56	58		Subsection (e), the board shall determine for the next state fiscal
57	59		biennium a limit on the amount of:
58	60		(1) state fund appropriations from all revenues by
59	61		multiplying the amount of all fund appropriations from all tax
60	62		revenues for the current state fiscal biennium by the sum of one and
61	63		the limit on the rate of growth of appropriations from all tax
62	64		revenues established by the board under Subsection (a)(1); and
63	65		(e) If the rate determined under Subsection (a)(2) is a
64	66		negative number, the amount of state funds appropriations for the
65	67		next state fiscal biennium may not exceed the amount of state funds
66	68		appropriations in the current state fiscal biennium nor could a
67	69		political subdivision.
68	70		(f) To ensure compliance with this subchapter and Section
69	71		22, Article VIII, [Section 22, of the] Texas Constitution, the
70	72		Legislative Budget Board may not transmit in any form to the
71	73		governor or the legislature the budget as prescribed by Section
72	74		322.008(c) or the general appropriations bill as prescribed by
73	75		Section 322.008(d) until the board adopts:
74	76		(1) the limit on the rate of growth of appropriations
75	77		from state tax revenues not dedicated by the constitution under
76	78		Section 316.001(b); and
77	79		(2) the limit on the rate of growth of al funds
78	80		appropriations under Section 316.001(c) [has been adopted as
79	81		required by this subchapter].
80	82		(g) [(e)] In the absence of an action by the Legislative
81	83		Budget Board to adopt the limits [a spending limit] as provided by
82	84		this section:
83	85		(1) for purposes of Section 316.001(b):
84	86		(A) [in Subsections (a) and (b),] the estimated
85	87		rate of growth of [in] the state's economy from the current state
86	88		fiscal biennium to the next state fiscal biennium shall be treated
87	89		as if it were zero;[,] and
88	90		(B) the amount of state tax revenues not
89	91		dedicated by the constitution that could be appropriated within the
90	92		limit established by the estimated rate of growth of [in] the
91	93		state's economy shall be the same as the amount [level] of those
92	94		appropriations for the current state fiscal biennium; and
93	95		(2) for purposes of Section 316.001(c):
94	96		(A) the estimated average biennial rates of
95	97		growth of this state's population and of monetary inflation shall
96	98		be treated as if they were zero; and
97	99		(B) the amount of all funds appropriations that
98	100		could be appropriated within the limit established by that
99	101		subsection shall be the same as the amount of those appropriations
100	102		for the current state fiscal biennium.
101	103		Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
102	104		authorized by majority vote of the members of the board from each
103	105		house, the Legislative Budget Board budget recommendations:
104	106		(1) relating to the proposed appropriations from [of]
105	107		state tax revenues not dedicated by the constitution may not exceed
106	108		the limit on appropriations from those sources adopted by the
107	109		committee under Section 316.005; and
108	110		(2) relating to the proposed state funds
109	111		appropriations may not exceed the limit on appropriations from
110	112		those sources adopted by the committee under Section 316.005.
111	113		SECTION 2. Section 316.007(a), Government Code, is amended
112	114		to read as follows:
113	115		(a) The Legislative Budget Board shall include in its budget
114	116		recommendations:
115	117		(1) the proposed limit of appropriations from state
116	118		tax revenues not dedicated by the constitution; and
117	119		(2) the proposed limit of all funds appropriations.
118	120		SECTION 3. Section 316.008(a), Government Code, is amended
119	121		to read as follows:
120	122		(a) Unless the legislature adopts a resolution under
121	123		Section 22, Article VIII, [Section 22(b), of the] Texas
122	124		Constitution, raising the proposed limit on appropriations from
123	125		state tax revenues not dedicated by the constitution, the proposed
124	126		limit is binding on the legislature with respect to all
125	127		appropriations for the next state fiscal biennium made from those
126	128		[state tax] revenues [not dedicated by the constitution]. The
127	129		proposed limit on all funds appropriations is binding on the
128	130		legislature with respect to all appropriations for the next state
129	131		fiscal biennium made from those sources unless the legislature
130	132		adopts a resolution raising the proposed limit that is approved by a
131	133		record vote of three-fourths of the members of each house of the
132	134		legislature or a political subdivision. The resolution must find
133	135		that an emergency exists, identify the nature of the emergency, and
134	136		specify the amount authorized. The excess amount authorized under
135	137		this subsection may not exceed the amount specified in the
136	138		resolution.
137	139		(b) Any over-collected taxpayer money shall be returned by
138	140		reducing taxes.
139	141		SECTION 4. The changes in law made by this Act apply only in
140	142		relation to appropriations made for the state fiscal biennium
141	143		beginning September 1, 2025, and subsequent state fiscal bienniums.
142	144		SECTION 5. This Act takes effect September 1, 2025.