85(1) - 2017
Relating to the constitutional limit on the rate of growth of appropriations and appropriations of constitutionally dedicated revenue.
From LBB: No fiscal implication to the State is anticipated in the upcoming biennium. The provisions of
the bill would take effect with the 2020-21 biennium.
Starting in the 2020-21 biennium, the fiscal implication of restricting the biennial growth of
appropriations from state tax revenues not dedicated by the Constitution to the growth of
compounded population and inflation, and also of establishing a new statutory limit restricting
the biennial growth of appropriations from all sources of revenue other than the federal
government would depend on both the actions of the Legislative Budget Board with respect to
adopting the rate and future appropriation decisions by the legislature.
This bill would limit the growth of appropriations for each biennium from state tax revenues not dedicated by the Constitution to the estimated rate of growth of the state's population times inflation for the same period.
This bill would limit the rate of growth of appropriations from all sources of revenue other than the federal government in a state fiscal biennium to not exceed the rate of growth of the state's economy as calculated by the estimated rate of growth of the state's population times inflation. An appropriation to pay for a rebate of state taxes would be excluded from computations used to determine whether appropriations exceed the authorized amount.
Vote Recommendation Notes
This bill supports limited government by placing appropriate controls on the rate of growth of spending so that state spending does not outpace the rate of population growth and inflation. We support HB 208.