| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to estimating the rate of growth of the state's economy for |
|
|
purposes of the constitutional spending limit. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Sections 316.002(b), (c), and (e), Government |
|
|
Code, are amended to read as follows: |
|
|
(b) In determining [Except as provided by Subsection (c),
|
|
|
the board shall determine] the estimated rate of growth of the |
|
|
state's economy, the board shall consider the estimated rate of |
|
|
growth of the Texas gross state product and the estimated rate of |
|
|
growth in Texas total personal income. |
|
|
(c) T |
|
|
he board shall determine the estimated rate of growth |
|
|
of the Texas gross state product by dividing the estimated Texas |
|
|
gross state product for the next biennium by the estimated Texas |
|
|
gross state product for the current biennium. In determining the |
|
|
estimated Texas gross state product for a biennium the board shall |
|
|
consider information and analysis provided by the Bureau of |
|
|
Economic Analysis of the United States Department of Commerce or |
|
|
its successor in function and by other sources the board considers |
|
|
reliable. The board shall determine the estimated rate of growth in |
|
|
Texas total personal income by dividing the estimated Texas total |
|
|
personal income for the next biennium by the estimated Texas total |
|
|
personal income for the current biennium. Using standard |
|
|
statistical methods, the board shall make the personal income |
|
|
estimate by projecting through the biennium the estimated Texas |
|
|
total personal income reported by the United States Department of |
|
|
Commerce or its successor in function. The board shall adopt the |
|
|
lesser of those two rates as the estimated rate of growth of the |
|
|
state's economy. |
|
|
[(c) If a more comprehensive definition of the rate of
|
|
|
growth of the state's economy is developed and is approved by the
|
|
|
committee established by Section 316.005, the board may use that
|
|
|
definition in calculating the limit on appropriations.] |
|
|
(e) In the absence of an action by the Legislative Budget |
|
|
Board to adopt a spending limit as provided in Subsections (a), |
|
|
[and] (b), and (c), the estimated rate of growth in the state's |
|
|
economy from the current biennium to the next biennium shall be |
|
|
treated as if it were zero, and 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 in the state's |
|
|
economy shall be the same as the level of appropriations for the |
|
|
current biennium. |
|
|
SECTION 2. The change in law made by this Act applies only |
|
|
in relation to appropriations made for the state fiscal biennium |
|
|
beginning September 1, 2009, and subsequent state fiscal bienniums. |
|
|
Appropriations for the state fiscal biennium that begins September |
|
|
1, 2007, are governed by Subchapter A, Chapter 316, Government |
|
|
Code, as it existed on January 1, 2007, and the former law is |
|
|
continued in effect for that purpose. |
|
|
SECTION 3. This Act takes effect September 1, 2007. |