SB 9, Sen 2nd Rdg, Amnd #F1

(b) The rate of growth of appropriations in a state fiscal biennium from state tax revenues not dedicated by the constitution may not exceed the estimated rate of growth of the state's economy.

(c) The rate of growth of consolidated general revenue appropriations in a state fiscal biennium may not exceed the estimated rate of growth of the state's economy.

(d) For purposes of this subchapter, the estimated rate of growth of the state's economy is the average biennial rate of growth of this state's population during the state fiscal biennium preceding the biennium for which appropriations are made and during the state fiscal biennium for which appropriations are made adjusted by the average biennial rate of monetary inflation in this state during the same period, as determined under Section 316.002.

(e) The legislature finds that, for purposes of Section 22, Article VIII, Texas Constitution, the average biennial rate of growth of this state's population during the state fiscal biennium preceding the biennium for which appropriations are made and during the state fiscal biennium for which appropriations are made, adjusted by the average biennial rate of monetary inflation in this state during the same period is an appropriate measure of the estimated rate of growth of this state's economy.

(2) In SECTION 1 of the bill, in proposed Section 316.001(c), Government Code (page 1, line 49), strike "(c)" and substitute "(f)".

(3) In SECTION 1 of the bill, in proposed Section 316.001(c), Government Code (page 1, line 52), strike "(b)" and substitute "(b) or (c)".

(4) In SECTION 1 of the bill, in proposed Section 316.001(d), Government Code (page 1, line 53), strike "(d)" and substitute "(g)".

(5) In SECTION 1 of the bill, in proposed Section 316.001(d), Government Code (page 1, line 54), strike "Subsection (b)" and substitute "Subsection (d)".

(6) In SECTION 1 of the bill, in amended Section 316.002(a), Government Code, strike page 1, line 60, and page 2, line 1, and substitute the following:

322.008(c), the board shall establish:

(1) the limit on the rate of growth of appropriations of state tax revenues not dedicated by the constitution for that state fiscal biennium, as compared to the previous state fiscal biennium, by subtracting one from the product of:

(A) the sum of one and the estimated average biennial rate of growth of this state's population during the state fiscal biennium preceding the biennium for which appropriations are made and during the state fiscal biennium for which appropriations are made; and

(B) the sum of one and the estimated average biennial rate of monetary inflation during the state fiscal biennium preceding the biennium for which appropriations are made and during the state fiscal biennium for which appropriations are made; and

(2) the limit in the rate of growth in consolidated

(7) In SECTION 1 of the bill, in amended Section 316.002(a), Government Code (page 2, line 5), strike "(1)" and substitute "(A)".

(8) In SECTION 1 of the bill, in amended Section 316.002(a), Government Code (page 2, line 10), strike "(2)" and substitute "(B)".

(9) In SECTION 1 of the bill, in amended Section 316.002(b), Government Code (page 2, line 24), between "of" and "consolidated" insert the following:

(1) appropriations of state tax revenues not dedicated by the constitution by multiplying the amount of appropriations of state tax revenues not dedicated by the constitution for the then-current state fiscal biennium by the sum of one and the limit on the rate of growth of appropriations of state tax revenues not dedicated by the constitution determined by the board under Subsection (a)(1); and

(10) In SECTION 1 of the bill, in amended Section 316.002(b), Government Code (page 2, line 28), strike "Subsection (a)" and substitute "Subsection (a)(2)".

(11) In SECTION 1 of the bill, in amended Section 316.002(c), Government Code (page 2, line 36), between "(c)" and "If", insert the following:

If the rate determined under Subsection (a)(1) is a negative number, the amount of appropriations of state tax revenues not dedicated by the constitution for the next state fiscal biennium may not exceed the amount of appropriations of state tax revenues not dedicated by the constitution in the current state fiscal biennium.

(12) In SECTION 1 of the bill, in amended Section 316.002(c), Government Code (page 2, line 36), strike "Subsection (a)" and substitute "Subsection (a)(2)".

(13) In SECTION 1 of the bill, in amended Section 316.002(d), Government Code (page 2, line 45), between "with" and "Section", insert "this subchapter and".

(14) In SECTION 1 of the bill, in amended Section 316.002(d), Government Code, on page 2, strike lines 50-51 and substitute the following:

until the board adopts:

(1) the limit on the rate of growth of appropriations of state tax revenues not dedicated by the constitution under Section 316.001(b); and

(2) the limit on the rate of growth of consolidated general revenue appropriations under Section 316.001(c) [~~has been adopted as required by this subchapter~~].

(15) In SECTION 1 of the bill, strike amended Section 316.002(e), Government Code (page 2, lines 52-63), and substitute the following:

(e) In the absence of an action by the Legislative Budget Board to adopt the limits [~~a spending limit~~] as provided by this section:

(1) for purposes of Section 316.001(b):

(A) [~~in Subsections (a) and (b),~~] the estimated rate of growth in the state's economy from the current fiscal biennium to the next fiscal biennium shall be treated as if it were zero; [,] and

(B) the amount of state tax revenues not dedicated by the constitution that could be appropriated 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 fiscal biennium; and

(2) for purposes of Section 316.001(c):

(A) the estimated rate of growth in the state's economy from the current fiscal biennium to the next fiscal biennium shall be treated as if it were zero; and

(B) the amount of consolidated general revenue appropriations that could be appropriated within the limit established by that subsection shall be the same as the level of appropriations for the current fiscal biennium.

(16) In SECTION 1 of the bill, in amended Section 316.006, Government Code, strike page 2, line 66, through page 3, line 1, and substitute the following:

house, the Legislative Budget Board budget recommendations:

(1) relating to the proposed appropriations of state tax revenues not dedicated by the constitution may not exceed the limit on appropriations from those sources adopted by the committee under Section 316.005; and

(2) relating to the proposed consolidated general revenue appropriations may not exceed the limit on appropriations from those sources adopted by the committee under Section 316.005.

(17) In SECTION 2 of the bill, strike amended Section 316.007(a), Government Code (page 3, lines 4-7), and substitute the following:

(a) The Legislative Budget Board shall include in its budget recommendations:

(1) the proposed limit of appropriations from state tax revenues not dedicated by the constitution; and

(2) the proposed limit of consolidated general revenue appropriations.

(18) In SECTION 3 of the bill, in amended Section 316.008(a), Government Code, on page 3, strike lines 12-16 and substitute the following:

Constitution, raising the proposed limit on appropriations from state tax revenues not dedicated by the constitution, the proposed limit is binding on the legislature with respect to all appropriations for the next fiscal biennium made from those [~~state tax~~] revenues [~~not dedicated by the constitution~~]. The proposed limit on consolidated general revenue appropriations is binding on the legislature with respect to all appropriations for the next fiscal biennium made from those sources unless the legislature adopts a resolution raising the proposed limit that is approved by a record vote of three-fifths of the members of each house of the legislature. The resolution must find that an emergency exists, identify the nature of the emergency, and specify the amount authorized. The excess authorized under this subsection may not exceed the amount specified in the resolution.