By: Vasut H.B. No. 5532
A BILL TO BE ENTITLED
AN ACT
relating to a limitation on the rate of growth in state
appropriations
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 316.001 Government Code, is amended by
adding subsection (f) to read as follows:
(f) For purposes of this subchapter, the base value of
"consolidated general revenue appropriations" to be used in the
computation for the limit of appropriations for the current fiscal
biennium is the amount finally authorized by the legislature in the
general appropriation act of the previous fiscal biennium.
SECTION 2. Sections 316.002 Government Code, is amended to
read as follows:
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
Before the Legislative Budget Board transmits the budget for the
next state fiscal biennium as prescribed by Section 322.008(c), the
board shall establish:
(1) the limit on the rate of growth of appropriations
from state tax revenues not dedicated by the constitution for that
state fiscal biennium, as compared to the previous appropriations
from the prior state fiscal biennium, based on the estimated rate of
growth of the state's economy from the current state fiscal
biennium to the next state fiscal biennium; and
(2) the limit on the rate of growth of consolidated
general revenue appropriations for that state fiscal biennium, as
compared to the previous appropriations from the prior state fiscal
biennium, by subtracting one from the product of:
(A) the sum of one and the estimated average
biennial rate of growth of this state's population during the state
fiscal biennium preceding the biennium for which appropriations are
made and during the state fiscal biennium for which appropriations
are made; and
(B) the sum of one and the estimated average
biennial rate of monetary inflation during the state fiscal
biennium preceding the biennium for which appropriations are made
and during the state fiscal biennium for which appropriations are
made.
SECTION 3. The changes in law made by this Act apply only in
relation to appropriations made for the state fiscal biennium
beginning September 1, 2025, and subsequent state fiscal biennia.
SECTION 4. This Act takes effect September 1, 2025.