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A BILL TO BE ENTITLED
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AN ACT
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relating to the constitutional limit on the rate of growth of |
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appropriations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 316.001, 316.002, and 316.006, |
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Government Code, are amended to read as follows: |
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Sec. 316.001. LIMIT. (a) For purposes of this subchapter, |
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"consolidated general revenue appropriations" means appropriations |
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from: |
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(1) the general revenue fund in the state treasury; |
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(2) a dedicated account in the general revenue fund in |
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the state treasury; or |
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(3) a general revenue-related fund in the state |
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treasury as identified in the biennial statement required of the |
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comptroller under Section 49a, Article III, Texas Constitution. |
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(b) The rate of growth of appropriations in a state fiscal |
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biennium from state tax revenues not dedicated by the constitution |
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may not exceed the estimated rate of growth of the state's economy. |
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(c) The rate of growth of consolidated general revenue |
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appropriations in a state fiscal biennium may not exceed the |
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estimated rate of growth of the state's economy. |
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(d) For purposes of this subchapter, the estimated rate of |
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growth of the state's economy is the average biennial rate of growth |
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of this state's population during the state fiscal biennium |
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preceding the biennium for which appropriations are made and during |
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the state fiscal biennium for which appropriations are made, |
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adjusted by the average biennial rate of monetary inflation in this |
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state during the same period, as determined under Section 316.002. |
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(e) The legislature finds that, for purposes of Section 22, |
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Article VIII, Texas Constitution, the average biennial rate of |
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growth of this state's population during the state fiscal biennium |
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preceding the biennium for which appropriations are made and during |
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the state fiscal biennium for which appropriations are made, |
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adjusted by the average biennial rate of monetary inflation in this |
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state during the same period, is an appropriate measure of the |
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estimated rate of growth of this state's economy. |
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(f) For purposes of this subchapter, an appropriation to pay |
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for a rebate of state taxes must be excluded from computations used |
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to determine whether appropriations exceed the amount authorized by |
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Subsection (b) or (c). |
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(g) The Legislative Budget Board shall determine the rates |
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described by Subsection (d) using the most recent information |
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available from sources the board considers reliable, including the |
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United States Bureau of Labor Statistics' Consumer Price Index and |
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the Texas Demographic Center. |
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Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. |
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(a) Before the Legislative Budget Board transmits [submits] the |
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budget for the next state fiscal biennium as prescribed by Section |
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322.008(c), the board shall establish: |
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(1) the limit on the rate of growth of appropriations |
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of state tax revenues not dedicated by the constitution for that |
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state fiscal biennium, as compared to the previous state fiscal |
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biennium, by subtracting one from the product of: |
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(A) the sum of one and the estimated average |
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biennial rate of growth of this state's population during the state |
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fiscal biennium preceding the biennium for which appropriations are |
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made and during the state fiscal biennium for which appropriations |
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are made; and |
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(B) the sum of one and the estimated average |
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biennial rate of monetary inflation during the state fiscal |
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biennium preceding the biennium for which appropriations are made |
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and during the state fiscal biennium for which appropriations are |
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made; and |
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(2) the limit in the rate of growth in consolidated |
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general revenue appropriations for that state fiscal biennium, as |
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compared to the previous state fiscal biennium, by subtracting one |
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from the product of: |
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(A) the sum of one and the estimated average |
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biennial rate of growth of this state's population during the state |
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fiscal biennium preceding the biennium for which appropriations are |
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made and during the state fiscal biennium for which appropriations |
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are made; and |
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(B) the sum of one and the estimated average |
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biennial rate of monetary inflation during the state fiscal |
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biennium preceding the biennium for which appropriations are made |
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and during the state fiscal biennium for which appropriations are |
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made [the state's economy from the current biennium to the next
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biennium;
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[(2)
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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[(3)
the amount of state tax revenues not dedicated by
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the constitution that could be appropriated for the next biennium
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within the limit established by the estimated rate of growth of the
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state's economy]. |
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(b) Except as provided by Subsection (c), the board shall |
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determine for the next state fiscal biennium a limit on the amount |
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of: |
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(1) appropriations of state tax revenues not dedicated |
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by the constitution by multiplying the amount of appropriations of |
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state tax revenues not dedicated by the constitution for the then |
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current state fiscal biennium by the sum of one and the limit on the |
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rate of growth of appropriations of state tax revenues not |
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dedicated by the constitution determined by the board under |
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Subsection (a)(1); and |
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(2) consolidated general revenue appropriations by |
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multiplying the amount of consolidated general revenue |
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appropriations for the then current state fiscal biennium by the |
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sum of one and the limit on the rate of growth of consolidated |
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general revenue appropriations determined by the board under |
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Subsection (a)(2) [the estimated rate of growth of the state's
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economy by dividing the estimated Texas total personal income for
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the next biennium by the estimated Texas total personal income for
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the current biennium.
Using standard statistical methods, the
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board shall make the estimate by projecting through the biennium
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the estimated Texas total personal income reported by the United
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States Department of Commerce or its successor in function]. |
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(c) If the rate determined under Subsection (a)(1) is a |
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negative number, the amount of appropriations of state tax revenues |
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not dedicated by the constitution for the next state fiscal |
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biennium may not exceed the amount of appropriations of state tax |
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revenues not dedicated by the constitution in the current state |
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fiscal biennium. If the rate determined under Subsection (a)(2) is |
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a negative number, the amount of consolidated general revenue |
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appropriations for the next state fiscal biennium may not exceed |
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the amount of consolidated general revenue appropriations in the |
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current state fiscal biennium [If a more comprehensive definition
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of the rate of growth of the state's economy is developed and is
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approved by the committee established by Section 316.005, the board
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may use that definition in calculating the limit on
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appropriations]. |
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(d) To ensure compliance with this subchapter and Section |
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22, Article VIII, [Section 22, of the] Texas Constitution, the |
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Legislative Budget Board may not transmit in any form to the |
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governor or the legislature the budget as prescribed by Section |
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322.008(c) or the general appropriations bill as prescribed by |
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Section 322.008(d) until the board adopts: |
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(1) the limit on the rate of growth of appropriations |
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of state tax revenues not dedicated by the constitution under |
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Section 316.001(b); and |
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(2) the limit on the rate of growth of consolidated |
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general revenue appropriations under Section 316.001(c) [has been
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adopted as required by this subchapter]. |
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(e) In the absence of an action by the Legislative Budget |
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Board to adopt the limits [a spending limit] as provided by this |
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section: |
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(1) for purposes of Section 316.001(b): |
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(A) [in Subsections (a) and (b),] the estimated |
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rate of growth in the state's economy from the current fiscal |
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biennium to the next fiscal biennium shall be treated as if it were |
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zero;[,] and |
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(B) the amount of state tax revenues not |
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dedicated by the constitution that could be appropriated within the |
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limit established by the estimated rate of growth in the state's |
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economy shall be the same as the level of appropriations for the |
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current fiscal biennium; and |
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(2) for purposes of Section 316.001(c): |
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(A) the estimated rate of growth in the state's |
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economy from the current fiscal biennium to the next fiscal |
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biennium shall be treated as if it were zero; and |
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(B) the amount of consolidated general revenue |
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appropriations that could be appropriated within the limit |
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established by that subsection shall be the same as the level of |
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appropriations for the current fiscal biennium. |
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Sec. 316.006. LIMIT ON BUDGET RECOMMENDATIONS. Unless |
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authorized by majority vote of the members of the board from each |
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house, the Legislative Budget Board budget recommendations: |
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(1) relating to the proposed appropriations of state |
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tax revenues not dedicated by the constitution may not exceed the |
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limit on appropriations from those sources adopted by the committee |
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under Section 316.005; and |
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(2) relating to the proposed consolidated general |
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revenue appropriations may not exceed the limit on appropriations |
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from those sources adopted by the committee under Section 316.005. |
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SECTION 2. Section 316.007(a), Government Code, is amended |
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to read as follows: |
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(a) The Legislative Budget Board shall include in its budget |
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recommendations: |
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(1) the proposed limit of appropriations from state |
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tax revenues not dedicated by the constitution; and |
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(2) the proposed limit of consolidated general revenue |
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appropriations. |
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SECTION 3. Section 316.008(a), Government Code, is amended |
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to read as follows: |
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(a) Unless the legislature adopts a resolution under |
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Section 22, Article VIII, [Section 22(b), of the] Texas |
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Constitution, raising the proposed limit on appropriations from |
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state tax revenues not dedicated by the constitution, the proposed |
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limit is binding on the legislature with respect to all |
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appropriations for the next fiscal biennium made from those [state
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tax] revenues [not dedicated by the constitution]. The proposed |
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limit on consolidated general revenue appropriations is binding on |
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the legislature with respect to all appropriations for the next |
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fiscal biennium made from those sources unless the legislature |
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adopts a resolution raising the proposed limit that is approved by a |
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record vote of three-fifths of the members of each house of the |
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legislature. The resolution must find that an emergency exists, |
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identify the nature of the emergency, and specify the amount |
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authorized. The excess authorized under this subsection may not |
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exceed the amount specified in the resolution. |
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SECTION 4. The changes in law made by this Act apply only in |
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relation to appropriations made for the state fiscal biennium |
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beginning September 1, 2019, and subsequent state fiscal bienniums. |
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Appropriations for the state fiscal biennium that begins September |
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1, 2017, are governed by Sections 316.001, 316.002, 316.006, |
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316.007, and 316.008, Government Code, as those sections existed on |
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December 1, 2016, and the former law is continued in effect for that |
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purpose. |
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SECTION 5. This Act takes effect September 1, 2017. |