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.