| 2 | 4 | | |
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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to a limitation on the rate of growth in state |
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| 7 | 9 | | appropriations |
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| 8 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 11 | | SECTION 1. Section 316.001 Government Code, is amended by |
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| 10 | 12 | | adding subsection (f) to read as follows: |
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| 11 | 13 | | (f) For purposes of this subchapter, the base value of |
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| 12 | 14 | | "consolidated general revenue appropriations" to be used in the |
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| 13 | 15 | | computation for the limit of appropriations for the current fiscal |
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| 14 | 16 | | biennium is the amount finally authorized by the legislature in the |
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| 15 | 17 | | general appropriation act of the previous fiscal biennium. |
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| 16 | 18 | | SECTION 2. Sections 316.002 Government Code, is amended to |
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| 17 | 19 | | read as follows: |
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| 18 | 20 | | Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a) |
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| 19 | 21 | | Before the Legislative Budget Board transmits the budget for the |
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| 20 | 22 | | next state fiscal biennium as prescribed by Section 322.008(c), the |
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| 21 | 23 | | board shall establish: |
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| 22 | 24 | | (1) the limit on the rate of growth of appropriations |
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| 23 | 25 | | from state tax revenues not dedicated by the constitution for that |
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| 24 | 26 | | state fiscal biennium, as compared to the previous appropriations |
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| 25 | 27 | | from the prior state fiscal biennium, based on the estimated rate of |
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| 26 | 28 | | growth of the state's economy from the current state fiscal |
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| 27 | 29 | | biennium to the next state fiscal biennium; and |
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| 28 | 30 | | (2) the limit on the rate of growth of consolidated |
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| 29 | 31 | | general revenue appropriations for that state fiscal biennium, as |
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| 30 | 32 | | compared to the previous appropriations from the prior state fiscal |
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| 31 | 33 | | biennium, by subtracting one from the product of: |
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| 32 | 34 | | (A) the sum of one and the estimated average |
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| 33 | 35 | | biennial rate of growth of this state's population during the state |
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| 34 | 36 | | fiscal biennium preceding the biennium for which appropriations are |
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| 35 | 37 | | made and during the state fiscal biennium for which appropriations |
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| 36 | 38 | | are made; and |
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| 37 | 39 | | (B) the sum of one and the estimated average |
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| 38 | 40 | | biennial rate of monetary inflation during the state fiscal |
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| 39 | 41 | | biennium preceding the biennium for which appropriations are made |
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| 40 | 42 | | and during the state fiscal biennium for which appropriations are |
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| 41 | 43 | | made. |
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| 42 | 44 | | SECTION 3. The changes in law made by this Act apply only in |
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| 43 | 45 | | relation to appropriations made for the state fiscal biennium |
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| 44 | 46 | | beginning September 1, 2025, and subsequent state fiscal biennia. |
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| 45 | 47 | | SECTION 4. This Act takes effect September 1, 2025. |
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