The Legislative Budget Board (LBB) met to set the constitutional spending limit on certain appropriations for the 2020-21 biennium. $91.5 billion is the estimate of 2018-19 appropriations subject to the limit and will serve as the 2018-19 base for the 2020-21 limit calculation. The economic growth forecasts range from 8.34 percent to 11.37 percent. However, the 10 member board said they would vote on the actual spending cap at a later date.
This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. It is not a verbatim transcript of the hearing, but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.
Quorum called and minutes were approved
John McGeady, LBB
- Gave updates
- Level of appropriations for 2018-2019 base biennium – $91.5 billion
- Rate of economic growth ranges were estimated from 5 forecasting houses from 8.34 percent and 11.37 percent
- Compounded population and inflation growth rate estimates ranged from 7.52 percent to 8.44 percent
Joe Straus, Texas House Speaker
- Will NOT be considering a motion to adopt a spending limit, will do so at a later time
Tom Currah, Comptroller
- Comptroller materials
- Report on State Fiscal and Economic Conditions
- Continue to expect moderate economic growth, strong Texas economy
- Nelson – interim finance committee has pretty good data on what the supplemental will be, is there a good estimate on the Harvey costs yet?
- McGeady – keeping a close eye on the impact to property values on those areas impacted and how it ripples through the school finance system
- McGeady – running that data to see what they might expect
- Hancock – guess in on Harvey there will be one time only cost, request a breakdown on recurring Harvey costs versus ongoing budget issues
- McGeady – that is the plan, there will be one time costs and ongoing lingering costs such as property values