LBB sets lowest spending cap growth rate in history
November 14, 2008
The Legislative Budget Board, charged with setting the ceiling for spending in the 2010-2011 budget, adopted the lowest rate of growth since the spending cap was enacted by a constitutional amendment in 1978.
Written by Kate Alexander, The Austin American Statesman
The Legislative Budget Board, charged with setting the ceiling for spending in the 2010-2011 budget, adopted the lowest rate of growth since the spending cap was enacted by a constitutional amendment in 1978.
Adopting the personal income growth rate of 9.14 percent means that the Legislature can spend no more than $79.7 billion state revenue that is not dedicated by the constitution, up from $73 billion appropriated in the 2008-2009 budget.
The board, which includes Lt. Gov. David Dewhurst, House Speaker Tom Craddick and the heads of key committees from both chambers, chose from five forecasts of how much personal income will grow during during the 2010-2011 biennium.
The forecasts provided by four private economic forecasting services and the Texas Comptroller ranged from 7.7 percent to 14.8 percent. The comptroller offered the chosen 9.14 percent growth rate.
Friday’s move is one more indication that the current economic turmoil will affect state services for years to come.
John O’Brien, director of the budget board, told the the lawmakers they should be glad they left unspent a little over $7 billion in 2007. Otherwise, the next Legislature would be looking a shortfall for the coming two-year budget cycle, he said.
Fair Use Notice
This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a "fair use" of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond "fair use", you must obtain permission from the copyright owner.