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Relating to a limit on the rate of growth of certain appropriations.
No fiscal implication to the State is anticipated in the upcoming biennium. The provisions of
the bill would take effect with the 2022-23 biennium.
Starting in the 2022-23 biennium, the fiscal implication of restricting the biennial growth of
consolidated general revenue appropriations (General Revenue and General Revenue-Dedicated), 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 places a spending cap on dedicated funds and other "consolidated general revenue appropriations" defined in the bill. Biennial growth would be limited to the estimated average biennial rate of growth of population 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 during the same period.
Texas Action recommends supporting SB 1891 because it promotes limited government and free market principles. This would create a more accurate representation of our state spending and protect taxpayers by keeping the growth of government within its ability to pay for it.
Additionally, the population growth plus inflation formula are better economic measures for reflecting the average taxpayer's ability to pay. Strengthening the spending limit to population growth and inflation could lead to tax relief and accelerated economic growth.