79R2389 JJT-D
By: Isett H.B. No. 1327
A BILL TO BE ENTITLED
AN ACT
relating to the constitutional limitation on the rate of growth of
state appropriations and the constitutional creation of three
special funds to replace the economic stabilization fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 316.001, 316.002, 316.006, 316.007, and
316.008, Government Code, are amended to read as follows:
Sec. 316.001. LIMIT. The rate of growth of appropriations
from the current biennium to the next [in a] biennium from all
sources of revenue except the federal government [state tax
revenues not dedicated by the constitution] may not exceed a rate
equal to the sum of the estimated rate of growth of the state's
population during the next biennium and the estimated rate of
inflation in the state during the next biennium [economy]. For
purposes of this subchapter, the base figure for determining the
level of appropriations from all sources of revenue except the
federal government for the current biennium is the lesser of:
(1) the amount of money appropriated for the current
biennium from all sources of revenue other than the federal
government, as cumulatively estimated by the comptroller at the
times the comptroller endorsed, in accordance with Section 49a,
Article III, Texas Constitution, the comptroller's certificate on
the bills making the appropriations; and
(2) the amount of money actually appropriated for the
current biennium from all sources of revenue other than the federal
government, as estimated by the comptroller at the request of the
Legislative Budget Board.
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)
Before the Legislative Budget Board submits the budget as
prescribed by Section 322.008 [322.008(b)], the board shall
establish:
(1) the rate equal to the sum of the estimated rate of
growth of the state's population during [economy from the current
biennium to] the next biennium and the estimated rate of inflation
in the state during the next biennium;
(2) the level of appropriations for the current
biennium from all sources of revenue except the federal government
[state tax revenues not dedicated by the constitution]; and
(3) the amount of state revenue from all sources
except the federal government [tax revenues not dedicated by the
constitution] that could be appropriated for the next biennium
within the limit established by the estimated rate computed under
Subdivision (1) [of growth of the state's economy].
(b) [Except as provided by Subsection (c), the board shall
determine the estimated rate of growth of the state's economy by
dividing the estimated Texas total personal income for the next
biennium by the estimated Texas total personal income for the
current biennium. Using standard statistical methods, the board
shall make the estimate by projecting through the biennium the
estimated Texas total personal income reported by the United States
Department of Commerce or its successor in function.
[(c) If a more comprehensive definition of the rate of
growth of the state's economy is developed and is approved by the
committee established by Section 316.005, the board may use that
definition in calculating the limit on appropriations.
[(d)] To ensure compliance with Article VIII, Section 22, of
the Texas Constitution, the Legislative Budget Board may not
transmit in any form to the governor or the legislature the budget
as prescribed by Section 322.008(c) or the general appropriations
bill as prescribed by Section 322.008(d) until the limit on the rate
of growth of appropriations has been adopted as required by this
subchapter.
(c) [(e)] In the absence of an action by the Legislative
Budget Board to adopt a spending limit as provided in Subsection
[Subsections] (a) [and (b)], the [estimated rate of growth in the
state's economy from the current biennium to the next biennium
shall be treated as if it were zero, and the] amount of state
revenue from all sources except the federal government [tax
revenues not dedicated by the constitution] that may [could] be
appropriated for the next biennium [within the limit established by
the estimated rate of growth in the state's economy] shall be the
same as the level of appropriations from those sources for the
current biennium.
Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless
authorized by majority vote of the members of the board from each
house, the Legislative Budget Board budget recommendations
relating to the proposed appropriations of revenue from all sources
except the federal government [state tax revenues not dedicated by
the constitution] may not exceed the limit adopted by the committee
under Section 316.005.
Sec. 316.007. TRANSMISSION OF RECOMMENDATIONS. (a) The
Legislative Budget Board shall include in its budget
recommendations the proposed limit of appropriations from all
sources of revenue except the federal government [state tax
revenues not dedicated by the constitution].
(b) The board shall transmit the recommendations to the
governor and to each member of the legislature.
Sec. 316.008. EFFECT OF LIMIT; ENFORCEMENT. (a) Unless the
legislature adopts a resolution under Article VIII, Section 22(c)
[22(b)], of the Texas Constitution raising the proposed limit on
appropriations, the proposed limit is binding on the legislature
with respect to all appropriations for the next biennium made from
all sources of revenue except the federal government [state tax
revenues not dedicated by the constitution].
(b) The rules of the house of representatives and senate
shall provide for enforcement of Subsection (a).
SECTION 2. Sections 42.253(f) and (h), Education Code, are
amended to read as follows:
(f) Amounts transferred to the reserve account under
Subsection (e) shall be used in the succeeding fiscal year to
finance increases in allocations to school districts under
Subsection (i). If the amount in the reserve account is less than
the amount of the increases under Subsection (i) for the second year
of a state fiscal biennium, the commissioner shall certify the
amount of the difference to the Legislative Budget Board not later
than January 1 of the second year of the state fiscal biennium.
[The Legislative Budget Board shall propose to the legislature that
the certified amount be transferred to the foundation school fund
from the economic stabilization fund and appropriated for the
purpose of increases in allocations under Subsection (h).]
(h) If the legislature fails during the regular session to
make a transfer of the amount certified under Subsection (f) to the
foundation school fund and appropriate that money for the purpose
of increases in allocations under this subsection [enact the
transfer and appropriation proposed under Subsection (f)] and there
are not funds available under Subsection (j), the commissioner
shall reduce the total amount of state funds allocated to each
district by an amount determined by a method under which the
application of the same number of cents of increase in tax rate in
all districts applied to the taxable value of property of each
district, as determined under Subchapter M, Chapter 403, Government
Code, results in a total levy equal to the total reduction. The
following fiscal year, a district's entitlement under this section
is increased by an amount equal to the reduction made under this
subsection.
SECTION 3. (a) The changes in law made by this Act apply
only, as applicable, in relation to appropriations made for the
state fiscal biennium beginning September 1, 2007, and subsequent
state fiscal bienniums and in relation to state aid to school
districts for those fiscal bienniums. Appropriations for the state
fiscal biennium that began September 1, 2005, are governed by
Sections 316.001, 316.002, 316.006, 316.007, and 316.008,
Government Code, as those sections existed on January 1, 2005, and
the former law is continued in effect for that purpose.
(b) The changes in law made by this Act to Section 42.253,
Education Code, take effect May 29, 2007.
SECTION 4. Except as otherwise provided by this Act, this
Act takes effect January 1, 2007, but only if the constitutional
amendment proposed by the 79th Legislature, Regular Session, 2005,
concerning the restriction on the rate of growth of state
appropriations and establishing three special funds to replace the
economic stabilization fund is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.