spending growth limit measured against actual appropriations

The text as introduced · 359 words

By: Vasut
H.B. No. 5532

A BILL TO BE ENTITLED

AN ACT

relating to a limitation on the rate of growth in state

appropriations

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 316.001 Government Code, is amended by

adding subsection (f) to read as follows:

(f) For purposes of this subchapter, the base value of

"consolidated general revenue appropriations" to be used in the

computation for the limit of appropriations for the current fiscal

biennium is the amount finally authorized by the legislature in the

general appropriation act of the previous fiscal biennium.

SECTION 2. Sections 316.002 Government Code, is amended to

read as follows:

Sec. 316.002. DUTIES OF LEGISLATIVE BUDGET BOARD. (a)

Before the Legislative Budget Board transmits the budget 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 appropriations

from the prior state fiscal biennium, based on the estimated rate of

growth of the state's economy from the current state fiscal

biennium to the next state fiscal biennium; and

(2) the limit on the rate of growth of consolidated

general revenue appropriations for that state fiscal biennium, as

compared to the previous appropriations from the prior 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.

SECTION 3. The changes in law made by this Act apply only in

relation to appropriations made for the state fiscal biennium

beginning September 1, 2025, and subsequent state fiscal biennia.

SECTION 4. This Act takes effect September 1, 2025.