84R30821 CJC-D

By: Hancock, et al. S.B. No. 9

(Otto, Bonnen of Galveston, Ashby, Burkett,

Gonzales)

A BILL TO BE ENTITLED

AN ACT

relating to limitations on the rate of growth of appropriations for certain categories of spending.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 316, Government Code, is amended by adding Subchapter A-1 to read as follows:

SUBCHAPTER A-1. ADDITIONAL LIMIT ON GROWTH OF APPROPRIATIONS FROM

STATE FUNDS

Sec. 316.0101. LIMIT. In a state fiscal biennium, the rate of growth of appropriations from all sources of revenue other than the federal government may not exceed a rate determined as provided under Section 316.0102(a) for each of the following categories of spending:

(1) transportation;

(2) public primary and secondary education;

(3) higher education;

(4) health care;

(5) public safety and corrections; and

(6) other general government.

Sec. 316.0102. DUTIES OF LEGISLATIVE BUDGET BOARD. (a) Before the Legislative Budget Board transmits the budget for the next state fiscal biennium as prescribed by Section 322.008(c), the board shall establish a limit on the rate of growth of appropriations from all sources of revenue other than the federal government for each spending category described by Section 316.0101 for that biennium, as compared to the previous state fiscal biennium, by subtracting one from the product of:

(1) the sum of one and the estimated rate of growth in the population served by expenditures in that spending category during the biennium for which appropriations are made; and

(2) the sum of one and the estimated rate of inflation in a representative set of goods and services for which appropriations are made for that spending category during the biennium.

(b) The board shall determine the rates described by Subsection (a) using information available from any source the board considers reliable.

(c) Except as provided by Subsection (d) and subject to Subsection (g), the board shall establish for the next state fiscal biennium a limit on the amount of appropriations from all sources of revenue other than the federal government for each spending category described by Section 316.0101 by multiplying the amount of appropriations for each spending category for the then current state fiscal biennium by the sum of one and the limit on the rate of growth of appropriations for that spending category determined by the board under Subsection (a).

(d) If the rate determined under Subsection (a) for any spending category described by Section 316.0101 is a negative number, the amount of appropriations from all sources of revenue other than the federal government for that spending category available for the next state fiscal biennium is the same as the amount of those appropriations for the then current state fiscal biennium.

(e) To ensure compliance with this subchapter, the 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 board adopts the limit on the rate of growth of appropriations from all sources of revenue other than the federal government for that biennium for each spending category described by Section 316.0101.

(f) In the absence of an action by the board to adopt the limits required under this subchapter, the amount of appropriations from all sources of revenue other than the federal government for each spending category described by Section 316.0101 available for the next state fiscal biennium is the same as the amount of those appropriations for the current state fiscal biennium.

(g) Notwithstanding any other law, for purposes of calculations used to establish, in regard to a spending category described by Section 316.0101, the limit on the rate of growth under Subsection (a) and the limit on the amount of appropriations as provided under Subsection (c), if the legislature by law exempts an appropriation from the application of this subchapter for the next state fiscal biennium, the board shall exclude then current or previous appropriations that, as determined by the board, are of a nature similar to the exempted appropriation as if those similar appropriations also had been exempted by law.

Sec. 316.0103. PUBLICATION. Before the Legislative Budget Board approves the items of information required by Section 316.0102, the board shall publish in the Texas Register the proposed items of information and a description of the methodology and sources used in the calculations.

Sec. 316.0104. PUBLIC HEARING. Not later than December 1 of each even-numbered year, the Legislative Budget Board 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 316.0102.

Sec. 316.0105. LIMIT ON BUDGET RECOMMENDATIONS. Unless authorized by majority vote of the members of the Legislative Budget Board from each house, the board's budget recommendations relating to appropriations from all sources of revenue other than the federal government for each spending category described by Section 316.0101 may not exceed the limit adopted by the board under Section 316.0102.

Sec. 316.0106. INCLUSION IN BUDGET RECOMMENDATIONS. The Legislative Budget Board shall include in its budget recommendations the proposed limit of appropriations from all sources of revenue other than the federal government for each spending category described by Section 316.0101.

Sec. 316.0107. EFFECT OF LIMIT; ENFORCEMENT. (a) The proposed limit on appropriations from all sources of revenue other than the federal government for each spending category described by Section 316.0101 is binding on the legislature with respect to those appropriations for the next state fiscal biennium unless the legislature adopts a resolution raising the proposed limit that is approved by a record vote of a majority 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.

(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, as applicable, in relation to appropriations made for the state fiscal biennium beginning September 1, 2017, and subsequent state fiscal bienniums. Appropriations for the state fiscal biennium that begins September 1, 2015, are governed by the law in effect at the time those appropriations were made, and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2015.