The Legislative Budget Board (LBB) met today, December 1, 2016 to discuss setting the constitutional spending limit on certain appropriations for the 2018-19 biennium. The LBB was provided 5 forecasts on the estimated growth rates in their memorandum, which ranged from 9.99% to 11.44% on the 2016-17 base of $92.5 billion. Subsequently, the LBB unanimously approved a motion to adopt an even lower estimated rate of growth of 8% to a base amount of $92.5 billion which sets the limit of certain appropriations for the 85th Session at $99.9 billion, without concurrent resolution and subject to adjustments appropriated to the last biennium.
During the December 1, 2014 LBB meeting, before the start of the 84th Session, 4 forecasts were provided between 11.68% and 15.71% with the lowest rate of 11.68% adopted and applied to a base amount of $84.4 billion which set the limit for certain appropriations for the 84th Session at $94.3 billion.
The Biennial Revenue Estimate (BRE) from the Comptroller’s office, which will be released prior to the start of the 85th Session, will serve as a significant part of the calculations for appropriations and will provide the amount the state can expect to have for general purpose spending. Tom Currah, Chief Revenue Estimator with the Comptroller, told the committee that Texas continues to grow at a moderate pace and gave a small preview of what might be in the BRE stating the legislature can expect less than $7.2 billion in beginning balances and should be prepared for certain revenue constraints since up to $5 billion is dedicated to the State Highway Fund.
Documents:
2016-17 Article VIII Spending Limit Update
Technical Memorandum