| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the limitation on the rate of growth in appropriations |
|
|
from state tax revenues. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 316.001, Government Code, is amended to |
|
|
read as follows: |
|
|
Sec. 316.001. LIMIT. The rate of growth of appropriations |
|
|
in a biennium from state tax revenues not dedicated by the |
|
|
constitution may not exceed the lesser of the following rates: |
|
|
(1) the estimated rate of growth of this [the] state's |
|
|
economy; and |
|
|
(2) a rate equal to the sum of: |
|
|
(A) the estimated biennial rate of growth of this |
|
|
state's population; and |
|
|
(B) the estimated biennial rate of monetary |
|
|
inflation in this state. |
|
|
SECTION 2. The heading to Section 316.002, Government Code, |
|
|
is amended to read as follows: |
|
|
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD AND |
|
|
GOVERNOR. |
|
|
SECTION 3. Sections 316.002(a), (b), (c), and (e), |
|
|
Government Code, are amended to read as follows: |
|
|
(a) Before the Legislative Budget Board submits the budget |
|
|
as prescribed by Section 322.008(c), the board and the governor |
|
|
jointly shall establish: |
|
|
(1) the estimated rate of growth of this [the] state's |
|
|
economy from the current biennium to the next biennium as |
|
|
determined under Subsection (b); |
|
|
(2) a rate equal to the sum of: |
|
|
(A) the estimated biennial rate of growth of this |
|
|
state's population as determined under Subsection (c); and |
|
|
(B) the estimated biennial rate of monetary |
|
|
inflation in this state as determined under Subsection (c); |
|
|
(3) the level of appropriations for the current |
|
|
biennium from state tax revenues not dedicated by the constitution; |
|
|
and |
|
|
(4) [(3)] the amount of state tax revenues not |
|
|
dedicated by the constitution that could be appropriated for the |
|
|
next biennium within the limit established by applying the lesser |
|
|
of: |
|
|
(A) the estimated rate of growth of this [the] |
|
|
state's economy as determined under Subsection (b); and |
|
|
(B) a rate equal to the sum of: |
|
|
(i) the estimated biennial rate of growth |
|
|
of this state's population as determined under Subsection (c); and |
|
|
(ii) the estimated biennial rate of |
|
|
monetary inflation in this state as determined under Subsection |
|
|
(c). |
|
|
(b) The [Except as provided by Subsection (c), the] board |
|
|
and governor shall determine the estimated rate of growth of this |
|
|
[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 and governor 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) The board and governor shall determine a rate equal to |
|
|
the sum of the estimated biennial rate of growth of this state's |
|
|
population and the estimated biennial rate of monetary inflation in |
|
|
this state as provided by this subsection. The board and governor |
|
|
shall determine the estimated biennial rate of growth of this |
|
|
state's population based on the average rate of growth during the |
|
|
preceding six years according to United States Census Bureau |
|
|
estimates as certified by the comptroller. The board and governor |
|
|
shall determine the estimated biennial rate of monetary inflation |
|
|
in this state based on the average rate of change during the |
|
|
preceding six years of the effective consumer price index for this |
|
|
state. For purposes of this subsection, the effective consumer |
|
|
price index for this state is the average of the consumer price |
|
|
indexes as determined by the United States Department of Labor for |
|
|
the Corpus Christi metropolitan area and for the Dallas/Fort Worth |
|
|
metropolitan area. [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.] |
|
|
(e) In the absence of an action by the Legislative Budget |
|
|
Board and governor to adopt a spending limit as provided by this |
|
|
section, [in 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 tax revenues not dedicated by the constitution that may |
|
|
[could] be appropriated for the next biennium is [within the limit
|
|
|
established by the estimated rate of growth in the state's economy
|
|
|
shall be] the same as the level of appropriations for the current |
|
|
biennium. |
|
|
SECTION 4. Sections 316.003, 316.004, and 316.005, |
|
|
Government Code, are amended to read as follows: |
|
|
Sec. 316.003. PUBLICATION. Before the Legislative Budget |
|
|
Board and governor jointly approve [approves] the items of |
|
|
information as required by Section 316.002, the board and governor |
|
|
jointly shall publish in the Texas Register the proposed items of |
|
|
information and a description of the methodology and sources used |
|
|
in the calculations. |
|
|
Sec. 316.004. PUBLIC HEARING. Not later than December 1 of |
|
|
each even-numbered year, the Legislative Budget Board and governor |
|
|
jointly shall hold a public hearing to solicit testimony regarding |
|
|
the proposed items of information and the methodology used in |
|
|
making the calculations required by Section 316.002. |
|
|
Sec. 316.005. ADOPTION BY COMMITTEE. (a) After the |
|
|
Legislative Budget Board and governor jointly approve [approves] |
|
|
the items of information required by Section 316.002, the board and |
|
|
governor jointly shall submit the information to a committee |
|
|
composed of the [governor,] lieutenant governor, speaker of the |
|
|
house of representatives, and comptroller of public accounts. |
|
|
(b) Not later than the 10th day after the date on which the |
|
|
board and governor jointly submit [submits] the items of |
|
|
information, the committee shall meet and finally adopt the items |
|
|
of information, either as submitted by the board and governor or as |
|
|
amended by the committee. |
|
|
(c) If the committee fails to act within the 10-day period |
|
|
prescribed by Subsection (b), the items of information submitted by |
|
|
the board and governor are treated as if the committee had adopted |
|
|
them as submitted. |
|
|
SECTION 5. 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, 2015, and subsequent state |
|
|
fiscal bienniums. Appropriations for the state fiscal biennium |
|
|
that begins September 1, 2013, are governed by Sections 316.001 and |
|
|
316.002, Government Code, as those sections existed on December 1, |
|
|
2012, and the former law is continued in effect for that purpose. |
|
|
SECTION 6. This Act takes effect on the date on which the |
|
|
constitutional amendment proposed by the 83rd Legislature, Regular |
|
|
Session, 2013, concerning the maximum rate of growth of |
|
|
appropriations takes effect. If that amendment is not approved by |
|
|
the voters, this Act has no effect. |