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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 2024-25 biennium.
Starting in the 202425 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.
SB 1336 would prohibit the rate of growth for consolidated general revenue appropriations - meaning appropriations from the general revenue fund, a dedicated account in the general revenue fund in the state treasury, or a general revenue-related fund as identified by existing law - from exceeding the estimated average rate of state population growth during the state fiscal biennium for which appropriations are made and the rate of state population growth for preceding state fiscal biennium, adjusted by the estimated average rate of inflation during the same period.
The bill would exclude appropriations to pay for tax relief and disaster recovery from the growth restriction described above.
The bill would require the Legislative Budget Board to determine the limit on the rate of growth of appropriations from state tax revenues not dedicated by the constitution for that state fiscal biennium based on the state's estimated rate of economic growth and the limit on the rate of growth of consolidated general revenue appropriations for that state fiscal biennium.
The bill would also require the LBB to set a limit on the amount of appropriations from state tax revenues not dedicated by the constitution and consolidated general revenue appropriations for the next state fiscal biennium. The bill specifies that in the event the rate determined by the above calculations is negative, the the amount of consolidated general revenue appropriations cannot be increased from the amount set by the current state fiscal biennium.
Lastly the bill would make the proposed limit on consolidated general revenue appropriations 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.
Texas Action supports SB 1336 as it would help slow the growth of government and government spending, giving relief to Texas taxpayers and encouraging fiscal responsibility in our state government.
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