HBA-DMH H.B. 2095 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2095
By: Isett
Appropriations
4/16/2001
Introduced



BACKGROUND AND PURPOSE 

In 1978, voters passed an amendment to the Texas Constitution that placed
restrictions on appropriations. State spending has continued to increase
since the passage of that amendment.  In some years, state spending has
increased at a faster pace than the economy.  Also, Texas is one of the few
states that has allowed its budget to grow by more than 30 percent since
1990.  House Bill 2095 modifies restrictions on appropriations by
prohibiting the rate of growth in a biennium from exceeding the estimated
rate of growth of total personal income in the state. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2095 amends the Government Code to prohibit the rate of growth
of appropriations in a biennium from all sources of revenue except the
federal government from exceeding the estimated rate of growth of total
personal income in the state.  The bill removes the provision prohibiting
the rate of growth of appropriations in a biennium from state tax revenues
not dedicated by the constitution from exceeding the estimated rate of
growth of the state's economy.  The bill sets forth a base figure for
determining the rate of growth.  The bill modifies the method the
Legislative Budget Board is required to use in preparing a general
appropriations bill. 

EFFECTIVE DATE

The Act takes effect on the date on which the constitutional amendment
restricting the rate of growth of appropriations from all sources of
revenue except the federal government to the estimated rate of growth of
total personal income in this state takes effect. If that amendment is not
approved by the voters, the Act has no effect.  The changes in law made by
the Act apply only in relation to appropriations made for the state fiscal
biennium beginning September 1, 2003, and subsequent state fiscal biennia.