H.B. No. 44 proposes to limit the growth rate of state and local appropriations in Texas, ensuring that such growth does not exceed the average taxpayer's ability to fund government services. The bill introduces new definitions and stipulations regarding "all funds appropriations," which encompass various revenue sources, including the general revenue fund and federal funds. It mandates that the growth rates of appropriations be based on the average annual growth of the state's population and inflation over the preceding three years. Additionally, the Legislative Budget Board is tasked with determining these growth limits and ensuring compliance with the new regulations before transmitting budget recommendations.

The bill also emphasizes the return of over-collected taxpayer money through tax reductions, reinforcing the principle that any excess funds should benefit taxpayers directly. It establishes that the proposed limits on appropriations from state tax revenues and all funds appropriations will be binding unless the legislature adopts a resolution to raise these limits under specific conditions. The changes enacted by this bill will apply to appropriations made for the state fiscal biennium beginning September 1, 2025, and subsequent bienniums, with the act taking effect on the same date.

Statutes affected:
Introduced: Government Code 316.001, Government Code 316.007, Government Code 316.008 (Government Code 316)