By Isett H.B. No. 2095
77R8214 JJT-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the constitutional limitation on the rate of growth of
1-3 appropriations.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 316.001, 316.002, 316.006, 316.007, and
1-6 316.008, Government Code, are amended to read as follows:
1-7 Sec. 316.001. LIMIT. The rate of growth of appropriations in
1-8 a biennium from all sources of revenue except the federal
1-9 government [state tax revenues not dedicated by the constitution]
1-10 may not exceed the estimated rate of growth of total personal
1-11 income in the state [the state's economy]. For purposes of this
1-12 subchapter, the base figure for determining the rate of growth of
1-13 appropriations is the lesser of:
1-14 (1) the amount of money appropriated under the General
1-15 Appropriations Act for the current biennium from all sources of
1-16 revenue other than the federal government, as estimated by the
1-17 comptroller at the time that Act was adopted; and
1-18 (2) the amount of money actually appropriated under
1-19 the General Appropriations Act for the current biennium from all
1-20 sources of revenue other than the federal government, as estimated
1-21 by the comptroller at the request of the Legislative Budget Board.
1-22 Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
1-23 Before the Legislative Budget Board submits the budget as
1-24 prescribed by Section 322.008(b), the board shall establish:
2-1 (1) the estimated rate of growth of total personal
2-2 income in the state [the state's economy] from the current biennium
2-3 to the next biennium;
2-4 (2) the level of appropriations under the General
2-5 Appropriations Act for the current biennium from all sources of
2-6 revenue except the federal government [state tax revenues not
2-7 dedicated by the constitution]; and
2-8 (3) the amount of state revenue from all sources
2-9 except the federal government [tax revenues not dedicated by the
2-10 constitution] that could be appropriated for the next biennium
2-11 within the limit established by the estimated rate of growth of
2-12 total personal income in the state [the state's economy].
2-13 (b) Except as provided by Subsection (c), the board shall
2-14 determine the estimated rate of growth of total personal income in
2-15 the state [the state's economy] by dividing the estimated Texas
2-16 total personal income for the next biennium by the estimated Texas
2-17 total personal income for the current biennium. Using standard
2-18 statistical methods, the board shall make the estimate by
2-19 projecting through the biennium the estimated Texas total personal
2-20 income reported by the United States Department of Commerce or its
2-21 successor in function.
2-22 (c) If a more comprehensive definition of the rate of growth
2-23 of total personal income in the state [the state's economy] is
2-24 developed and is approved by the committee established by Section
2-25 316.005, the board may use that definition in calculating the limit
2-26 on appropriations.
2-27 (d) To ensure compliance with Article VIII, Section 22, of
3-1 the Texas Constitution, the Legislative Budget Board may not
3-2 transmit in any form to the governor or the legislature the budget
3-3 as prescribed by Section 322.008(c) or the general appropriations
3-4 bill as prescribed by Section 322.008(d) until the limit on the
3-5 rate of growth of appropriations has been adopted as required by
3-6 this subchapter.
3-7 (e) In the absence of an action by the Legislative Budget
3-8 Board to adopt a spending limit as provided in Subsections (a) and
3-9 (b), the estimated rate of growth in total personal income in the
3-10 state [the state's economy] from the current biennium to the next
3-11 biennium shall be treated as if it were zero, and the amount of
3-12 state revenue from all sources except the federal government [tax
3-13 revenues not dedicated by the constitution] that could be
3-14 appropriated within the limit established by the estimated rate of
3-15 growth in total personal income in the state [the state's economy]
3-16 shall be the same as the level of appropriations for the current
3-17 biennium.
3-18 Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
3-19 authorized by majority vote of the members of the board from each
3-20 house, the Legislative Budget Board budget recommendations relating
3-21 to the proposed appropriations of revenue from all sources except
3-22 the federal government [state tax revenues not dedicated by the
3-23 constitution] may not exceed the limit adopted by the committee
3-24 under Section 316.005.
3-25 Sec. 316.007. TRANSMISSION OF RECOMMENDATIONS. (a) The
3-26 Legislative Budget Board shall include in its budget
3-27 recommendations the proposed limit of appropriations from all
4-1 sources of revenue except the federal government [state tax
4-2 revenues not dedicated by the constitution].
4-3 (b) The board shall transmit the recommendations to the
4-4 governor and to each member of the legislature.
4-5 Sec. 316.008. EFFECT OF LIMIT; ENFORCEMENT. (a) Unless the
4-6 legislature adopts a resolution under Article VIII, Section 22(b),
4-7 of the Texas Constitution raising the proposed limit on
4-8 appropriations, the proposed limit is binding on the legislature
4-9 with respect to all appropriations for the next biennium made from
4-10 all sources of revenue except the federal government [state tax
4-11 revenues not dedicated by the constitution].
4-12 (b) The rules of the house of representatives and senate
4-13 shall provide for enforcement of Subsection (a).
4-14 SECTION 2. The changes in law made by this Act apply only in
4-15 relation to appropriations made for the state fiscal biennium
4-16 beginning September 1, 2003, and subsequent state fiscal biennia.
4-17 Appropriations for the state fiscal biennium that begins September
4-18 1, 2001, are governed by Sections 316.001, 316.002, 316.006,
4-19 316.007, and 316.008, Government Code, as those sections existed at
4-20 the time the General Appropriations Act for that biennium was
4-21 passed by the legislature, and the former law is continued in
4-22 effect for that purpose.
4-23 SECTION 3. This Act takes effect on the date on which the
4-24 constitutional amendment proposed by the 77th Legislature, Regular
4-25 Session, 2001, restricting the rate of growth of appropriations
4-26 from all sources of revenue except the federal government to the
4-27 estimated rate of growth of total personal income in this state,
5-1 takes effect. If that amendment is not approved by the voters, this
5-2 Act has no effect.