Bill Text: TX SB361 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to limitations on the rate of growth of appropriations.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2015-02-02 - Referred to Finance [SB361 Detail]

Download: Texas-2015-SB361-Introduced.html

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By: Estes S.B. No. 361

A BILL TO BE ENTITLED
AN ACT
relating to limitations 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, 316.003, 316.004, 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:
1) all state revenues and
2) all sources of revenue, including the federal
government,
[state tax revenues not dedicated by the constitution] may
not exceed the estimated rate of growth of the state's economy.
(b) For the purposes of subsection (a), the rate of growth
of the state's economy is the lesser of the following rates,
calculated for the two fiscal years immediately preceding the
regular biennial legislative session:
(1) a rate equal to the sum of:
(A) the rate of growth of this state's
population; and
(B) the rate of monetary inflation in this state;
(2) the rate of growth of personal income of this
state's residents; or
(3) the rate of growth of this state's gross state
product.
Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD.
(a) Before the Legislative Budget Board transmits [submits] the
budget as prescribed by Section 322.008(c), the board shall
determine [establish]:
(1) the estimated rate of growth of the state's economy
from the current fiscal biennium to the next fiscal biennium as
determined in Section 316.001 (b);
(2) the [level of] appropriations for the current
fiscal biennium from:
1) all state [tax] revenues and
2) all revenues, including federal revenue
[not dedicated by the constitution]; and
(3) the amount of:
(A) all state [tax] revenues and
(B) all revenues, including federal
revenues,[not dedicated by the constitution]
that could be appropriated for the next fiscal
biennium within the limit established
[by the estimated rate of growth of the state's
economy].
(b) The [Except as provided by Subsection (c), the] board
shall use information [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, or by other reliable state, federal, or private sources,
to determine the estimated rate of growth of the state's economy.
(c) For purposes of this section, in determining the total
appropriations made in a state fiscal biennium, the Legislative
Budget Board must consider all appropriations made for that
biennium, including an appropriation made for that biennium during
a subsequent called or regular session of the legislature [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 the limit on the rate of
growth of appropriations of [tax] revenues [not dedicated by the
constitution] under Section 316.001(a)] under Section 316.001(a)
[has been adopted as required by this subchapter].
(e) In the absence of an action by the Legislative Budget
Board to adopt the limitations [a spending limit as] provided in
Subsection[s] (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 both all state [tax] revenues
and all revenues, including federal revenue,[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.
Sec. 316.003. PUBLICATION. Before the Legislative Budget
Board approves the items of information required by Section
316.002, the board shall publish in the Texas Register the proposed
items of information and a description of the methodology and
sources used in the determinations [calculations].
Sec. 316.004. PUBLIC HEARING. Not later than December 1 of
each even-numbered year, the Legislative Budget Board shall hold a
public hearing to solicit testimony regarding the proposed items of
information and the methodology used in making the determinations
[calculations] required by Section 316.002.
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
relating to the proposed appropriations from the state treasury for
the next fiscal biennium [of state tax revenues not dedicated by the
constitution] may not exceed the limit on appropriations of
1) all state [tax] revenues and
2) all revenues, including federal revenue,[not
dedicated by the constitution],],
adopted by the committee under Section 316.005, and may not
exceed the limit on appropriations of revenue from all sources,
including the federal government, adopted by the committee under
that section [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 all
state [tax] revenues [not dedicated by the constitution]; and
(2) the proposed limit of appropriations from all
sources of revenue, including the federal government.
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, [Section 22(b), of the] Texas
Constitution, raising the proposed limit on appropriations from all
state [tax] revenues [not dedicated by the constitution], the
proposed limit is binding on the legislature with respect to all
appropriations for the next fiscal biennium made from those [state
tax] revenues [not dedicated by the constitution]. The limits on
appropriations in Section 316.001 (a) are binding on the
legislature with respect to all appropriations for the next fiscal
biennium made from those revenues unless the legislature adopts a
resolution raising the proposed limit that is approved by a record
vote of a majority 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 authorized under this subsection may not exceed the amount
specified in the resolution.
SECTION 4. (a) The changes in law made by this Act apply
only in relation to an appropriation made for a state fiscal
biennium beginning on or after September 1, 2017.
(b) Appropriations for the state fiscal biennium that
begins September 1, 2015, are governed by Subchapter A, Chapter
316, Government Code, as that subchapter existed immediately before
the effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.