80R1493 JJT-D

By: Riddle H.B. No. 250

A BILL TO BE ENTITLED

AN ACT

relating to the constitutional limitation on the rate of growth of state appropriations.

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. The changes in law made by this Act apply only in relation to appropriations made for the state fiscal biennium beginning September 1, 2009, and subsequent state fiscal bienniums. Appropriations for the state fiscal biennium that began September 1, 2007, are governed by Sections 316.001, 316.002, 316.006, 316.007, and 316.008, Government Code, as those sections existed on January 1, 2007, and the former law is continued in effect for that purpose.

SECTION 3. Except as otherwise provided by this Act, this Act takes effect January 1, 2009, but only if the constitutional amendment proposed by the 80th Legislature, Regular Session, 2007, concerning the restriction on the rate of growth of state appropriations is approved by the voters . If that amendment is not approved by the voters, this Act has no effect.