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A BILL TO BE ENTITLED
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AN ACT
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relating to a limit on the rate of growth of certain 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 average biennial rate of growth of this state's |
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population during the state fiscal biennium preceding the biennium |
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for which appropriations are made and during the state fiscal |
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biennium for which appropriations are made, adjusted by the |
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estimated average biennial rate of monetary inflation in this state |
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during the same period, as determined under Section 316.002. |
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(d) For purposes of this subchapter, the following |
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appropriations must be excluded from computations used to determine |
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whether appropriations exceed the amount authorized by Subsection |
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(c): |
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(1) an appropriation to pay for a rebate of state |
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taxes; |
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(2) an appropriation for a purpose that provides tax |
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relief; or |
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(3) an appropriation to pay costs associated with |
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natural disaster recovery. |
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(e) The Legislative Budget Board shall determine the rates |
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described by Subsection (c) 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. (a) |
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Before the Legislative Budget Board transmits [submits] the budget |
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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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from 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, based on the estimated rate of growth of the state's |
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economy from the current state fiscal biennium to the next state |
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fiscal biennium; and |
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(2) the limit on the rate of growth of 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 level of appropriations for the current biennium from |
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state tax revenues not dedicated by the constitution; 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 the estimated rate of growth of the state's economy for |
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purposes of Subsection (a)(1) by dividing the estimated Texas total |
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personal income for the next state fiscal biennium by the estimated |
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Texas total personal income for the current state fiscal biennium. |
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Using standard statistical methods, the board shall make the |
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estimate by projecting through the biennium the estimated Texas |
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total personal income reported by the United States Department of |
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Commerce or its successor in function. |
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(c) If a more comprehensive definition of the rate of growth |
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of the state's economy is developed and is approved by the committee |
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established by Section 316.005, the board may use that definition |
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in calculating the limit on the rate of growth of appropriations |
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from state tax revenues not dedicated by the constitution under |
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Subsection (a)(1). |
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(d) Except as provided by Subsection (e), 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 from state tax revenues not |
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dedicated by the constitution by multiplying the amount of |
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appropriations from state tax revenues not dedicated by the |
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constitution for the current state fiscal biennium by the sum of one |
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and the limit on the rate of growth of appropriations from state tax |
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revenues not dedicated by the constitution established by the board |
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under 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 current state fiscal biennium by the sum of |
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one and the limit on the rate of growth of consolidated general |
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revenue appropriations established by the board under Subsection |
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(a)(2). |
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(e) If the rate determined under Subsection (a)(1) is a |
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negative number, the amount of appropriations from state tax |
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revenues not dedicated by the constitution for the next state |
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fiscal biennium may not exceed the amount of appropriations from |
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state tax revenues not dedicated by the constitution in the current |
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state fiscal biennium. If the rate determined under Subsection |
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(a)(2) is a negative number, the amount of consolidated general |
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revenue appropriations for the next state fiscal biennium may not |
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exceed the amount of consolidated general revenue appropriations in |
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the current state fiscal biennium. |
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(f) 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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from 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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(g) [(e)] In the absence of an action by the Legislative |
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Budget Board to adopt the limits [a spending limit] as provided by |
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this 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 of [in] the state's economy from the current state |
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fiscal biennium to the next state fiscal biennium shall be treated |
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as if it were 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 of [in] the |
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state's economy shall be the same as the amount [level] of those |
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appropriations for the current state fiscal biennium; and |
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(2) for purposes of Section 316.001(c): |
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(A) the estimated average biennial rates of |
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growth of this state's population and of monetary inflation shall |
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be treated as if they 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 amount of |
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those appropriations for the current state 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 from [of] |
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state tax revenues not dedicated by the constitution may not exceed |
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the limit on appropriations from those sources adopted by the |
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committee 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 state fiscal biennium made from those |
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[state tax] revenues [not dedicated by the constitution]. The |
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proposed limit on consolidated general revenue appropriations is |
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binding on the legislature with respect to all appropriations for |
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the next state fiscal biennium made from those sources unless the |
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legislature adopts a resolution raising the proposed limit that is |
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approved by a record vote of three-fifths of the members of each |
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house of the legislature. The resolution must find that an |
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emergency exists, identify the nature of the emergency, and specify |
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the amount authorized. The excess amount authorized under this |
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subsection may not 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, 2023, and subsequent state fiscal bienniums. |
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Appropriations for the state fiscal biennium beginning September 1, |
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2021, are governed by Sections 316.001, 316.002, 316.006, 316.007, |
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and 316.008, Government Code, as those sections existed on |
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September 1, 2020, and the former law is continued in effect for |
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that purpose. |
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SECTION 5. This Act takes effect September 1, 2021. |