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SECTION 1. Sections 316.001,
316.002, and 316.006, Government Code, are amended to read as follows:
Sec. 316.001. LIMIT. (a) For purposes of this subchapter,
"consolidated general revenue appropriations" means
appropriations from:
(1) the general revenue fund in the state treasury;
(2) a dedicated account in the general revenue fund in the
state treasury; or
(3) a general revenue-related fund in the state treasury as
identified in the biennial statement required of the comptroller under
Section 49a, Article III, Texas Constitution.
(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.
(f) For purposes of this
subchapter, an appropriation to pay for a rebate of state taxes must be
excluded from computations used to determine whether appropriations exceed
the amount authorized by Subsection (b) or (c).
(g) The Legislative
Budget Board shall determine the rates described by Subsection (d) using the
most recent information available from sources the board considers
reliable, including the United States Bureau of Labor Statistics Consumer Price Index and the Texas
Demographic Center.
Sec. 316.002. DUTIES OF
LEGISLATIVE BUDGET BOARD. (a) Before the Legislative Budget Board transmits
[submits] the budget for the next state fiscal biennium as
prescribed by Section 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 on the rate
of growth in consolidated general
revenue appropriations 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 [the state's
economy from the current biennium to the next biennium;
[(2) the level of
appropriations for the current biennium from state tax revenues not
dedicated by the constitution; and
[(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 the estimated rate of
growth of the state's economy].
(b) Except as provided by
Subsection (c), the board shall determine
for the next state fiscal biennium a limit on the amount of:
(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 established by the board under Subsection (a)(1); and
(2) consolidated general revenue
appropriations by multiplying the amount of consolidated
general revenue appropriations for the then
current state fiscal biennium by the sum of one and the limit on the rate
of growth of consolidated general
revenue appropriations established by the board under Subsection
(a)(2) [the estimated rate of growth of 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 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) 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. If the rate determined under Subsection (a)(2) is a
negative number, the amount of consolidated
general revenue appropriations for the next state fiscal biennium
may not exceed the amount of consolidated
general revenue appropriations in
the current state fiscal biennium [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].
(d) To ensure compliance
with this subchapter and Section 22, Article VIII, [Section 22,
of the] Texas Constitution, the Legislative Budget 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:
(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].
(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.
Sec. 316.006. LIMIT ON
BUDGET RECOMMENDATIONS. Unless authorized by majority vote of the members
of the board from each 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.
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SECTION 1. Sections 316.001,
316.002, and 316.006, Government Code, are amended to read as follows:
Sec. 316.001. LIMIT.
(a) 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.
(b) The rate of growth of
appropriations from all sources of revenue
other than the federal government in a state fiscal biennium may not
exceed the estimated rate of growth of the state's economy.
(c) For purposes of this
subchapter, the estimated rate of growth of the state's economy is the estimated average biennial rate of
growth of this state's population during the state fiscal biennium for
which appropriations are made, adjusted by the estimated average biennial
rate of monetary inflation in this state during the same period, as
determined under Section 316.002.
(d) The legislature finds
that, for purposes of Section 22, Article VIII, Texas Constitution, the estimated average biennial rate of
growth of this state's population during the state fiscal biennium for
which appropriations are made, adjusted by the estimated average biennial rate of monetary inflation in
this state during the same period, is an appropriate measure of the
estimated rate of growth of the
state's economy.
(e) For purposes of this
subchapter, an appropriation to pay for a rebate of state taxes must be
excluded from computations used to determine whether appropriations exceed
the amount authorized by Subsection (a) or (b).
(f) The Legislative
Budget Board shall determine the rates described by Subsection (c) using
the most recent information available from sources the board considers
reliable, including the United States Bureau of Labor Statistics and the
Texas Demographic Center.
Sec. 316.002. DUTIES OF
LEGISLATIVE BUDGET BOARD. (a) Before the Legislative Budget Board transmits
[submits] the budget for the next state fiscal biennium as
prescribed by Section 322.008(c), the board shall establish:
(1) the limit on the rate
of growth of appropriations from
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 for which appropriations are made; and
(B) the sum of one and
the estimated average biennial rate of monetary inflation in this state during the state fiscal
biennium for which appropriations are made; and
(2) the limit on the rate
of growth of appropriations from all sources of revenue other than the
federal government 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 for which appropriations are
made; and
(B) the sum of one and
the estimated average biennial rate of monetary inflation in this state during the state fiscal
biennium for which appropriations are made [the state's economy from
the current biennium to the next biennium;
[(2) the level of
appropriations for the current biennium from state tax revenues not
dedicated by the constitution; and
[(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 the estimated rate of
growth of the state's economy].
(b) Except as provided by
Subsection (c), the board shall establish
for the next state fiscal biennium a limit on the amount of:
(1) appropriations from state tax revenues not dedicated
by the constitution by multiplying the amount of appropriations from state tax revenues not dedicated
by the constitution for the current state fiscal biennium by the sum of one
and the limit on the rate of growth of appropriations from state tax revenues not dedicated
by the constitution established by the board under Subsection (a)(1); and
(2) appropriations from all sources of revenue other than the
federal government by multiplying the amount of appropriations from all sources of revenue other than the
federal government for the current state fiscal biennium by the sum
of one and the limit on the rate of growth of appropriations from all sources of revenue other than the
federal government established by the board under Subsection (a)(2)
[determine the estimated rate
of growth of 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 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) If the rate
determined under Subsection (a)(1) is a negative number, the amount of
appropriations from state tax
revenues not dedicated by the constitution for the next state fiscal
biennium may not exceed the amount of appropriations from state tax revenues not dedicated
by the constitution for the
current state fiscal biennium. If the rate determined under Subsection
(a)(2) is a negative number, the amount of appropriations from all sources of revenue other than the
federal government for the next state fiscal biennium may not exceed
the amount of appropriations from all
sources of revenue other than the federal government for the current
state fiscal biennium [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].
(d) To ensure compliance
with this subchapter and Section 22, Article VIII, [Section 22,
of the] Texas Constitution, the Legislative Budget 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 establishes:
(1) the limit on the
rate of growth of appropriations from
state tax revenues not dedicated by the constitution under Section
316.001(a); and
(2) the limit on the rate
of growth of appropriations from all
sources of revenue other than the federal government under Section
316.001(b) [has been adopted as required by this subchapter].
(e) In the absence of an
action by the Legislative Budget Board to establish
the limits [adopt a
spending limit] as provided by this section:
(1) for purposes of
Section 316.001(a):
(A) [in
Subsections (a) and (b),] the estimated rate of growth of
[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 of
[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(b):
(A) the estimated rate of
growth of 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
appropriations from all sources of
revenue other than the federal government 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.
Sec. 316.006. LIMIT ON
BUDGET RECOMMENDATIONS. Unless authorized by majority vote of the members
of the board from each house, the Legislative Budget Board budget
recommendations:
(1) relating to the
proposed appropriations from [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 appropriations from all sources
of revenue other than the federal government may not exceed the
limit on appropriations from those sources adopted by the committee under
Section 316.005.
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SECTION 4. The changes in
law made by this Act apply only in relation to appropriations made for the
state fiscal biennium beginning September 1, 2019, and subsequent state
fiscal bienniums. Appropriations for the state fiscal biennium beginning
September 1, 2017, are governed by Sections 316.001, 316.002, 316.006,
316.007, and 316.008, Government Code, as those sections existed on December 1, 2016, and the former law is
continued in effect for that purpose.
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SECTION 5. The changes in
law made by this Act to Sections
316.001, 316.002, 316.006, 316.007, and 316.008, Government Code,
apply only in relation to appropriations made for the state fiscal biennium
beginning September 1, 2019, and subsequent state fiscal bienniums.
Appropriations for the state fiscal biennium beginning September 1, 2017,
are governed by Sections 316.001, 316.002, 316.006, 316.007, and 316.008,
Government Code, as those sections existed on July
1, 2017, and the former law is continued in effect for that purpose.
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