HB 93

By: Toth
  H.B. No. 93
  A BILL TO BE ENTITLED
  AN ACT
  relating to a limitation on the rate of growth in state and local
  appropriations with the return of over-collected taxpayer money by
  reducing taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 316.001, 316.002, and 316.006,
  Government Code, are amended to read as follows:
         Sec. 316.001.  (a)  For purposes of this section, "all funds
  appropriations" means appropriations from:
               (1)  the general revenue fund in the state or local
  treasury;
               (2)  a dedicated account in the general revenue fund in
  the state or local treasury;
               (3)  a general revenue-related fund in the state
  treasury as identified in the biennial statement required of the
  comptroller under Section 49a, Article III, Texas Constitution; and
               (4)  the other state funds, other local funds, and
  federal funds in the state or local treasury.
         (b)  In each state fiscal biennium, the rate of growth of
  appropriations from all revenue sources, and each local fiscal year
  may not exceed the average taxpayer's ability to pay for the cost of
  funding government.
         (c)  The rates of growth of state funds appropriations in a
  state fiscal biennium or political subdivisions shall not exceed
  the estimated prior three-year average annual rate of growth of
  this state's population during the three calendar years preceding
  the regular session for which appropriations are made, adjusted by
  the estimated prior three-year average annual rate of inflation
  during the same period, as determined under Section 316.002.
         (d)  The Legislative Budget Board shall determine the rates
  described by Subsection (e) using the most recent information
  available from the United States Bureau of Labor Statistics and the
  United States Census Bureau.
         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 for that state fiscal biennium, as compared
  to the previous state fiscal biennium, and the limit on the rate of
  growth of appropriations for political subdivisions for that local
  fiscal year based on:
               (2)  the limit on the rate of growth of all funds
  appropriations for that state fiscal biennium or political
  subdivision fiscal year, as compared to the previous period, by
  summing:
                     (A)  the prior three-year average annual rate of
  growth of this state's population preceding the regular session for
  which appropriations are made; and
                     (B)  the prior three-year average annual rate of
  inflation using the chained-consumer price index preceding the
  regular session before appropriations.
         (d)  Except as provided by Subsection (e), the board shall
  determine for the next state fiscal biennium a limit on the amount
  of:
               (1)  state fund appropriations from all revenues by
  multiplying the amount of all fund appropriations from all tax
  revenues for the current state fiscal biennium by the sum of one and
  the limit on the rate of growth of appropriations from all tax
  revenues established by the board under Subsection (a)(1); and
         (e)  If the rate determined under Subsection (a)(2) is a
  negative number, the amount of state funds appropriations for the
  next state fiscal biennium may not exceed the amount of state funds
  appropriations in the current state fiscal biennium nor could a
  political subdivision.
         (f)  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:
               (1)  the limit on the rate of growth of appropriations
  from state tax revenues not dedicated by the constitution under
  Section 316.001(b); and
               (2)  the limit on the rate of growth of al funds
  appropriations under Section 316.001(c) [has been adopted as
  required by this subchapter].
         (g) [(e)]  In the absence of an action by the Legislative
  Budget Board to adopt the limits [a spending limit] as provided by
  this section:
               (1)  for purposes of Section 316.001(b):
                     (A)  [in Subsections (a) and (b),] the estimated
  rate of growth of [in] the state's economy from the current state
  fiscal biennium to the next state fiscal biennium shall be treated
  as if it were zero;[,] and
                     (B)  the amount of state tax revenues not
  dedicated by the constitution that could be appropriated within the
  limit established by the estimated rate of growth of [in] the
  state's economy shall be the same as the amount [level] of those
  appropriations for the current state fiscal biennium; and
               (2)  for purposes of Section 316.001(c):
                     (A)  the estimated average biennial rates of
  growth of this state's population and of monetary inflation shall
  be treated as if they were zero; and
                     (B)  the amount of all funds appropriations that
  could be appropriated within the limit established by that
  subsection shall be the same as the amount of those appropriations
  for the current state fiscal biennium.
         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:
               (1)  relating to the proposed appropriations from [of]
  state tax revenues not dedicated by the constitution may not exceed
  the limit on appropriations from those sources adopted by the
  committee under Section 316.005; and
               (2)  relating to the proposed state funds
  appropriations may not exceed the limit on appropriations from
  those sources adopted by the committee under 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 state
  tax revenues not dedicated by the constitution; and
               (2)  the proposed limit of all funds appropriations.
         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
  state tax revenues not dedicated by the constitution, the proposed
  limit is binding on the legislature with respect to all
  appropriations for the next state fiscal biennium made from those
  [state tax] revenues [not dedicated by the constitution].  The
  proposed limit on all funds appropriations is 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-fourths of the members of each house of the
  legislature or a political subdivision.  The resolution must find
  that an emergency exists, identify the nature of the emergency, and
  specify the amount authorized.  The excess amount authorized under
  this subsection may not exceed the amount specified in the
  resolution.
         (b)  Any over-collected taxpayer money shall be returned by
  reducing taxes.
         SECTION 4.  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 bienniums.
         SECTION 5.  This Act takes effect September 1, 2025.