Texas Legislative Budget Committee limits general spending growth to 7% over the next two years

The Texas Legislature has one constitutionally mandated responsibility for each regular legislative meeting. It’s about passing the budget. Legislative Budget Committee (LBB) to set up a table for the next two years Limited General income will increase by 7 percent from the 2020-2021 level.

From the $ 98.8 billion allocated in 2019, LBB has approved $ 105.8 billion in general revenue expenditures for the 2022-2023 budget. Authorization allows spending up to that level, but does not explicitly imply that the legislature will make that level appropriate. And it doesn’t cover all areas of state spending.

Before 1986th Legislative Assembly, LBB Approved General revenue expenditure was $ 100.3 billion, of which $ 1.5 billion was not allocated. That budget increase was only 10 percent shy — 3 percent higher than this year’s LBB limit.

2019, Congress 2020-2021 Total budget for 2 years It increased by nearly $ 15 billion. Most of this was due to a $ 11.6 billion increase in school finances and a purchase of property taxes. Part of the increase in spending, including $ 1.2 billion to increase state contributions to teacher retirement, is the Economic Stability Fund (ESF), also known as the State Savings Account, the Rainy Day Fund. It is due to.

Texas 2021 ESF due to pandemic and its blockade Contribution It decreased by 32% from the previous year’s allocation.

However, the state tax collection is for the accounting auditor Original With a $ 4.6 billion budget shortage forecast for July, the state outlook isn’t as dire as it was five months ago.

A building The submission by Congressman Matt Klaus (Republican Fort Worth) aims to limit twice-yearly spending growth to population growth and an estimated growth rate of inflation.Klaus Said“Our spending limits are very important to ensure Texas financial responsibility. Currently, spending limits do not cover all areas of revenue.”

“It makes sense, [sic] The recession we are facing now – even wise during times of high profitability, ”he added.

The 7.06% increase limit approved by the LBB is a figure of population growth and inflation for financial auditors and reflects the limit enacted by Klaus’s bill.

Texas finances are an important concern entering the next session and something is highlighted Estimated Speaker of the House Dade Ferrand..

November Collection of consumption tax It was 6.3% lower than the same month in 2019.This is an improvement over the last few months since the pandemic, but nevertheless Negative trend.. The state’s balanced budget requirements create a pay-as-you-go system. Therefore, funding for these two years of spending comes primarily from the overall tax collection.

Commitments made during the very prosperous period of 2019 remain on the books, and the state has made these debts through its initial forecasts, as the blockade hampered some taxpayers’ ability to pay property taxes. I was able to fulfill.

Governor Greg Abbott, Vice Governor Dan Patrick, Dennis Bonen Speaker in response to the oncoming economic struggle Ordered State agencies cut budgets by 5%.

The cut is still in progress, Exemption As laid out, 60 percent of the state’s budget is not reduced to any extent.

In addition to Emergency authorityWhen the legislature is convened in January, the state notebook becomes of paramount concern.

Texas Legislative Budget Committee limits general spending growth to 7% over the next two years

Source link Texas Legislative Budget Committee limits general spending growth to 7% over the next two years

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