C.S.H.J.R. 15 78(R)    BILL ANALYSIS


C.S.H.J.R. 15
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.  As proposed, C.S.H.J.R. 15
restricts 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 resolution does not expressly
grant any additional rulemaking authority to a state officer, institution,
department, or agency. 

ANALYSIS

C.S.H.J.R. 15 amends the Texas Constitution to require that the growth of
state appropriations 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 resolution includes a methodology for calculating the rate
of growth of appropriations from the current biennium to the next
biennium, and requires the legislature to enact implementing legislation.
The resolution provides that the limitations on growth of appropriations
can be exceeded only if a two-thirds majority of each house finds that an
emergency exists.  The resolution provides that no bill appropriating
money from any source except the federal government can be passed unless
the Comptroller certifies that the appropriation does not contravene the
limit on the rate of growth on appropriations. 

FOR ELECTION

This proposed constitutional amendment shall be submitted to the voters at
an election to be held November 4, 2003.  The changes made to the Texas
Constitution by this proposed constitutional amendment would 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.J.R. 15 modifies the original by prohibiting the rate of growth of
appropriations in a given 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 modifies the temporary provision added to
the Texas Constitution, as well as the language of the proposition on the
voting ballot, in order to accommodate this change.