Bill > HB5532

This bill modifies Texas state law regarding limitations on the growth of state appropriations by establishing a new method for calculating the base value and growth rate of government spending. Specifically, the bill defines the base value of "consolidated general revenue appropriations" as the amount finally authorized by the legislature in the previous fiscal biennium's general appropriation act. The Legislative Budget Board will now be required to establish growth limits by calculating two key factors: the rate of growth of appropriations from state tax revenues and the rate of growth of consolidated general revenue appropriations. The calculation for consolidated general revenue appropriations will be based on a formula that considers both population growth and monetary inflation rates during the preceding and current fiscal biennia. This method aims to create a more dynamic and precise mechanism for controlling state spending growth by tying appropriations increases to economic and demographic factors. The changes will apply to appropriations made for the state fiscal biennium beginning September 1, 2025, and subsequent biennia, with the act taking effect on the same date. This approach provides a structured way to manage state spending while accounting for realistic growth factors like population changes and inflation.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5532