Bill Text: TX HB2304 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the constitutional limit on the rate of growth of appropriations.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-15 - Referred to Appropriations [HB2304 Detail]
Download: Texas-2021-HB2304-Introduced.html
87R3922 SRA-D | ||
By: Schofield | H.B. No. 2304 |
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relating to the constitutional limit on the rate of growth of | ||
appropriations. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
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 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, adjusted by the estimated 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 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, 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 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 [ |
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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 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 of 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 [ |
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(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 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) consolidated general revenue appropriations by | ||
multiplying the amount of consolidated general revenue | ||
appropriations for the 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) [ |
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(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 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 [ |
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(d) To ensure compliance with this subchapter and Section | ||
22, Article VIII, [ |
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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 | ||
from 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) [ |
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(e) In the absence of an action by the Legislative Budget | ||
Board to adopt the limits [ |
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section: | ||
(1) for purposes of Section 316.001(b): | ||
(A) [ |
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rate of growth of [ |
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fiscal biennium to the next state fiscal biennium shall be treated | ||
as if it were zero; [ |
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(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 [ |
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state's economy shall be the same as the amount [ |
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appropriations for the current state fiscal biennium; and | ||
(2) for purposes of Section 316.001(c): | ||
(A) the estimated rate of growth of the state's | ||
economy from the current state fiscal biennium to the next state | ||
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 amount of | ||
those appropriations for the current state 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 [ |
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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. | ||
SECTION 2. Section 316.007(a), Government Code, is amended | ||
to read as follows: | ||
(a) The Legislative Budget Board shall include in its budget | ||
recommendations: | ||
(1) the proposed limit of appropriations from state | ||
tax revenues not dedicated by the constitution; and | ||
(2) the proposed limit of consolidated general revenue | ||
appropriations. | ||
SECTION 3. Section 316.008(a), Government Code, is amended | ||
to read as follows: | ||
(a) Unless the legislature adopts a resolution under | ||
Section 22, Article VIII, [ |
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Constitution, raising the proposed limit on appropriations from | ||
state tax revenues not dedicated by the constitution, the proposed | ||
limit is binding on the legislature with respect to all | ||
appropriations for the next state fiscal biennium made from those | ||
[ |
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proposed limit on consolidated general revenue appropriations is | ||
binding on the legislature with respect to all appropriations for | ||
the next state fiscal biennium made from those sources unless the | ||
legislature adopts a resolution raising the proposed limit that is | ||
approved by a record vote of three-fifths 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 amount authorized under this | ||
subsection may not exceed the amount specified in the resolution. | ||
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, 2023, and subsequent state fiscal bienniums. | ||
Appropriations for the state fiscal biennium beginning September 1, | ||
2021, are governed by Sections 316.001, 316.002, 316.006, 316.007, | ||
and 316.008, Government Code, as those sections existed on | ||
September 1, 2020, and the former law is continued in effect for | ||
that purpose. | ||
SECTION 5. This Act takes effect September 1, 2021. |