FOR IMMEDIATE RELEASE 12/01/2016
LEGISLATURE ENSURES FISCAL DISCIPLINE WITH SPENDING CAP
AUSTIN – The Legislative Budget Board adopted a Constitutional Spending Limit on Thursday that will limit budget growth to 8 percent over the next two years.
The limit was adopted with a unanimous vote of the Board, which is co-chaired by the Speaker of the House and the Lieutenant Governor and also includes four Members of the House and four Members of the Senate.
Under the limit adopted Thursday, spending will increase slower than personal income is projected to grow over the next two years.
“Today’s vote will allow the Legislature to produce a balanced, responsible state budget,” said House Speaker Joe Straus. “It will also allow us to make strategic investments in priorities such as education, child protection and mental health care. The House will continue to practice fiscal discipline while addressing the core needs of our growing state.”
The Constitutional Spending Limit applies to tax revenue that is not dedicated by the Texas Constitution.