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A BILL TO BE ENTITLED
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AN ACT
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relating to a limitation on the rate of growth in state |
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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. Section 316.001 Government Code, is amended by |
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adding subsection (f) to read as follows: |
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(f) For purposes of this subchapter, the base value of |
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"consolidated general revenue appropriations" to be used in the |
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computation for the limit of appropriations for the current fiscal |
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biennium is the amount finally authorized by the legislature in the |
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general appropriation act of the previous fiscal biennium. |
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SECTION 2. Sections 316.002 Government Code, is amended to |
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read as follows: |
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Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a) |
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Before the Legislative Budget Board transmits the budget for the |
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next state fiscal biennium as prescribed by Section 322.008(c), the |
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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 appropriations |
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from the prior state fiscal biennium, based on the estimated rate of |
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growth of the state's economy from the current state fiscal |
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biennium to the next state 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 appropriations from the prior 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. |
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SECTION 3. 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, 2025, and subsequent state fiscal biennia. |
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SECTION 4. This Act takes effect September 1, 2025. |