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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 of appropriations. |
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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: |
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(1) the estimated rate of growth of the state's economy |
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as represented by the rate of growth in Texas personal income |
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determined under Section 316.002(b); and |
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(2) the sum of the estimated average biennial rate of |
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the state's population growth and the estimated average biennial |
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rate of monetary inflation in this state, determined under Section |
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316.002(c). |
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SECTION 2. Section 316.002, Government Code, is amended to |
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read as follows: |
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Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a) |
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Before the Legislative Budget Board submits the budget as |
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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; |
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(2) the sum of the estimated average biennial rate of |
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the state's population growth and the estimated average biennial |
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rate of monetary inflation in this state; |
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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 the lesser of the |
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estimated rate of growth of the state's economy as determined under |
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Subsection (b) and the sum of the estimated average biennial rate of |
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the state's population growth and the estimated average biennial |
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rate of monetary inflation in this state as determined under |
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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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from the current biennium to the next biennium by dividing the |
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estimated Texas total personal income for the next biennium by the |
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estimated Texas total personal income for the current biennium. |
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Using standard statistical methods, the board shall make the |
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estimate by projecting through the biennium the estimated Texas |
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total personal income reported by the United States Department of |
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Commerce or its successor in function. |
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(c) Using information and analysis obtained from the United |
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States Department of Labor or its successor in function, the state |
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demographer or the demographer's successor in function, the United |
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States Census Bureau or its successor in function, and other |
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relevant sources the board considers reliable, the board shall |
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determine the sum of the estimated average biennial rate of the |
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state's population growth and the estimated average biennial rate |
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of monetary inflation in this state by: |
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(1) determining the estimated average biennial rate of |
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the state's population growth over the current and the two previous |
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state fiscal bienniums; |
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(2) determining the estimated average biennial rate of |
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monetary inflation in this state over the current and the two |
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previous state fiscal bienniums; and |
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(3) adding the rate determined under Subdivision (1) |
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to the rate determined under Subdivision (2). [If a more
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comprehensive definition of the rate of growth of the state's
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economy is developed and is approved by the committee established
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by Section 316.005, the board may use that definition in
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calculating the limit on appropriations.] |
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(d) To ensure compliance with Article VIII, Section 22, of |
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the Texas Constitution, the Legislative Budget Board may not |
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transmit in any form to the governor or the legislature the budget |
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as prescribed by Section 322.008(c) or the general appropriations |
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bill as prescribed by Section 322.008(d) until the limit on the rate |
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of growth of appropriations has been adopted as required by this |
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subchapter. |
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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 [in
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Subsections (a) and (b)], the limit on the rate of growth of |
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appropriations under this subchapter is [estimated rate of growth
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in the state's economy from the current biennium to the next
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biennium shall be treated as if it were] zero, and the amount of |
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state tax revenues not dedicated by the constitution that may |
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[could] be appropriated within the limit is [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 as considered adopted under Section |
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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 as considered adopted under Section |
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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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(e) If the Legislative Budget Board does not adopt a |
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spending limit as provided by Section 316.002, both the |
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constitutional limit on the rate of growth of appropriations and |
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the statutory limit on the rate of growth of appropriations are |
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considered to be zero. |
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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. |