HB5532 - Relating to a limitation on the rate of growth in state appropriations.

      By: Vasut H.B. No. 5532       A BILL TO BE ENTITLED   AN ACT   relating to a limitation on the rate of growth in state   appropriations          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 316.001 Government Code, is amended by   adding subsection (f) to read as follows:           (f)     For purposes of this subchapter, the base value of   "consolidated general revenue appropriations" to be used in the   computation for the limit of appropriations for the current fiscal   biennium is the amount finally authorized by the legislature in the   general appropriation act of the previous fiscal biennium.          SECTION 2.  Sections 316.002 Government Code, is amended to   read as follows:          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 not dedicated by the constitution for that   state fiscal biennium, as compared to the previous appropriations   from the prior state fiscal biennium, based on the estimated rate of   growth of the state's economy from the current state fiscal   biennium to the next state fiscal biennium; and                (2)  the limit on the rate of growth of consolidated   general revenue appropriations for that state fiscal biennium, as   compared to the previous appropriations from the prior state fiscal   biennium, by subtracting one from the product of:                      (A)  the sum of one and the estimated average   biennial rate of growth of this state's population during the state   fiscal biennium preceding the biennium for which appropriations are   made and during the state fiscal biennium for which appropriations   are made; and                      (B)  the sum of one and the estimated average   biennial rate of monetary inflation during the state fiscal   biennium preceding the biennium for which appropriations are made   and during the state fiscal biennium for which appropriations are   made.          SECTION 3.  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 biennia.          SECTION 4.  This Act takes effect September 1, 2025.