H.B. No. 93 aims to impose limitations on the growth rate of state and local appropriations, ensuring that such growth does not exceed the average taxpayer's ability to fund government operations. The bill introduces new definitions and stipulations regarding "all funds appropriations," which encompass various revenue sources, including general revenue and federal funds. It establishes that the growth rates for state and local appropriations must align with the average annual growth rates of the state's population and inflation over the preceding three years. Additionally, the Legislative Budget Board is tasked with determining these growth rates using data from the U.S. Bureau of Labor Statistics and the U.S. Census Bureau.

The bill also mandates that any over-collected taxpayer money be returned through tax reductions. It specifies that the proposed limits on appropriations from state tax revenues not dedicated by the constitution will be binding unless the legislature adopts a resolution to raise these limits, which requires a three-fourths majority vote. 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)