C.S.H.B. 133 78(R)    BILL ANALYSIS


C.S.H.B. 133
By: Isett
State Affairs
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, the rate of growth of appropriations from state tax
revenues not constitutionally dedicated is prohibited from exceeding the
rate of growth of the state's economy in a given biennium.  When Article
8, Section 22 of the Texas Constitution was enacted, the voters' intent
was to prioritize spending within the available dollars, and those dollars
were to be tied to the growth of the economy.  Without a change in the
law, this intent may not be fulfilled.  The purpose of C.S.H.B. 133 is to
restrict growth in state appropriations to a rate equal to the sum of the
estimated rate of growth of the state's population and the estimated rate
of inflation in the state. 

RULEMAKING AUTHORITY

It is the opinion of the committee that this bill does not expressly grant
any additional rulemaking authority to a state officer, department,
agency, or institution. 

ANALYSIS

C.S.H.B. 133 is the implementing legislation for Committee Substitute
House Joint Resolution 15 by Isett.  The bill amends Subchapter A, Chapter
316, of the Government Code to require that the growth of state
appropriations from the current biennium to the next biennium from all
sources of revenue except the federal government cannot exceed a rate
equal to the sum of the estimated rate of growth of the state's population
and the estimated rate of inflation in the state.  The bill includes
methodologies for calculating the base figure for determining the level of
appropriations for the current biennium and the rate of growth of
appropriations from the current biennium to the next biennium.  The bill
makes additional conforming changes to Subchapter A, Chapter 316, of the
Government Code consistent with the provisions of C.S.H.J.R. 15 by Isett.  

EFFECTIVE DATE

The Act takes effect on the date on which House Joint Resolution 15,
proposed by the 78th Legislature, Regular Session, 2003, takes effect.  If
that resolution is not approved by the voters, the Act has no effect.  The
changes in law made by the Act apply only in relation to appropriations
made for the state fiscal biennium beginning September 1, 2005, and
subsequent fiscal bienniums. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 133 modifies the original by prohibiting the rate of growth of
appropriations from the current biennium to the next biennium from
exceeding a rate equal to the sum of the estimated rate of growth of the
state's population and the estimated rate of inflation in the state,
rather than the estimated rate of growth of total personal income in the
state, as was provided in the original bill. The substitute makes
conforming changes to accommodate this change.  The substitute also
changes the original by providing that appropriations for the state fiscal
biennium that begins September 1, 2003 are governed by certain provisions
of Chapter 316 of the Government Code as they existed on January 1, 2003.