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A BILL TO BE ENTITLED
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AN ACT
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relating to the limitation on the rate of growth in appropriations |
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from state tax revenues. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 316.001, Government Code, is amended to |
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read as follows: |
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Sec. 316.001. LIMIT. The rate of growth of appropriations |
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in a biennium from state tax revenues not dedicated by the |
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constitution may not exceed the lesser of the following rates: |
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(1) the estimated rate of growth of the state's |
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economy; and |
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(2) a rate equal to the sum of: |
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(A) the estimated biennial rate of growth of the |
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state's population; and |
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(B) the estimated biennial rate of monetary |
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inflation in the state. |
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SECTION 2. Sections 316.002(a), (b), (c), and (e), |
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Government Code, are amended to read as follows: |
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(a) Before the Legislative Budget Board submits the budget |
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as prescribed by Section 322.008 [322.008(b)], the board shall |
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establish: |
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(1) the estimated rate of growth of the state's economy |
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from the current biennium to the next biennium as determined under |
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Subsection (b); |
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(2) a rate equal to the sum of: |
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(A) the estimated biennial rate of growth of the |
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state's population as determined under Subsection (c); and |
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(B) the estimated biennial rate of monetary |
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inflation in the state as determined under Subsection (c); |
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(3) the level of appropriations for the current |
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biennium from state tax revenues not dedicated by the constitution; |
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and |
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(4) [(3)] the amount of state tax revenues not |
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dedicated by the constitution that could be appropriated for the |
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next biennium within the limit established by applying the lesser |
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of: |
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(A) the estimated rate of growth of the state's |
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economy as determined under Subsection (b); and |
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(B) a rate equal to the sum of: |
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(i) the estimated biennial rate of growth |
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of the state's population as determined under Subsection (c); and |
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(ii) the estimated biennial rate of |
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monetary inflation in the state as determined under Subsection (c). |
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(b) The [Except as provided by Subsection (c), the] board |
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shall determine the estimated rate of growth of the state's economy |
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by dividing the estimated Texas total personal income for the next |
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biennium by the estimated Texas total personal income for the |
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current biennium. Using standard statistical methods, the board |
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shall make the estimate by projecting through the biennium the |
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estimated Texas total personal income reported by the United States |
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Department of Commerce or its successor in function. |
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(c) The board shall determine a rate equal to the sum of the |
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estimated biennial rate of growth of the state's population and the |
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estimated biennial rate of monetary inflation in the state as |
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provided by this subsection. The board shall determine the |
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estimated biennial rate of growth of the state's population based |
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on the average rate of growth during the preceding six years |
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according to United States Census Bureau estimates as certified by |
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the comptroller. The board shall determine the estimated biennial |
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rate of monetary inflation in the state based on the average rate of |
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change during the preceding six years of the effective consumer |
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price index for the state. For purposes of this subsection, the |
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effective consumer price index for the state is the average of the |
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consumer price indexes as determined by the United States |
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Department of Labor for the Houston metropolitan area and for the |
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Dallas/Fort Worth metropolitan area. [If a more comprehensive
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definition of the rate of growth of the state's economy is developed
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and is approved by the committee established by Section 316.005,
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the board may use that definition in calculating the limit on
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appropriations.] |
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(e) In the absence of an action by the Legislative Budget |
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Board to adopt a spending limit as provided by this section, the |
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spending limit considered adopted under this subchapter is [in
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Subsections (a) and (b), the estimated rate of growth in the state's
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economy from the current biennium to the next biennium shall be
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treated as if it were] zero, and the amount of state tax revenues |
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not dedicated by the constitution that may [could] be appropriated |
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for the next biennium [within the limit established by the
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estimated rate of growth in the state's economy] shall be the same |
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as the level of appropriations for the current biennium. |
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SECTION 3. Section 316.008, Government Code, is amended to |
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read as follows: |
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Sec. 316.008. EFFECT OF LIMIT; ENFORCEMENT. (a) In this |
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section: |
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(1) "Constitutional limit on the rate of growth of |
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appropriations" means the limit on the rate of growth of |
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appropriations determined by the Legislative Budget Board under |
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Section 316.002(b) as finally adopted by the committee under |
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Section 316.005(b) or the limit as considered adopted under Section |
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316.002(e) or 316.005(c). |
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(2) "Statutory limit on the rate of growth of |
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appropriations" means the limit on the rate of growth of |
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appropriations determined by the Legislative Budget Board under |
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Section 316.002(c) as finally adopted by the committee under |
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Section 316.005(b) or the limit as considered adopted under Section |
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316.002(e) or 316.005(c). |
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(b) With respect to the constitutional limit on the rate of |
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growth of appropriations, unless [Unless] the legislature adopts a |
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resolution under Article VIII, Section 22(b), of the Texas |
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Constitution raising the proposed constitutional limit on |
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appropriations, the proposed constitutional limit is binding on the |
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legislature with respect to all appropriations for the next |
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biennium made from state tax revenues not dedicated by the |
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constitution. |
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(c) [(b)] The rules of the house of representatives and |
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senate shall provide for enforcement of Subsection (b) [(a)]. |
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(d) When the statutory limit on the rate of growth of |
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appropriations is lower than the constitutional limit on the rate |
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of growth of appropriations or is lower than the constitutional |
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limit as raised by a resolution described by Subsection (b), the |
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proposed statutory limit is binding on the legislature with respect |
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to all appropriations for the next biennium made from state tax |
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revenues not dedicated by the constitution unless the legislature |
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by general law provides that the statutory limit does not apply to |
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appropriations for that biennium. |
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SECTION 4. The changes in law made by this Act apply only |
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with respect to appropriations for the state fiscal biennium |
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beginning September 1, 2011, and subsequent state fiscal bienniums. |
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SECTION 5. This Act takes effect September 1, 2009. |