Texas House Bill HB 5532

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

Relating to a limitation on the rate of growth in state appropriations.

Summary

HB 5532 would change how Texas calculates the cap on the growth of state appropriations. The bill amends Government Code Chapter 316 to revise the baseline used for the appropriations limit and to clarify the formulas the Legislative Budget Board must use when setting limits on growth in state tax revenues not dedicated by the constitution and on consolidated general revenue appropriations. In particular, it specifies that the base value for consolidated general revenue appropriations is the amount finally authorized in the prior biennium’s general appropriations act. The bill also restates the growth-limit methodology for consolidated general revenue appropriations by tying the limit to population growth and monetary inflation across the relevant biennia. Its changes apply beginning with the state fiscal biennium that starts September 1, 2025, and would govern future biennia thereafter.

Impact

HB 5532 would affect state budgeting law by tightening and clarifying the statutory framework used to calculate Texas’s appropriations growth limit. It would direct the Legislative Budget Board to use a specific prior-biennium appropriation amount as the base for the consolidated general revenue cap and would continue to require calculations based on economic growth, population, and inflation. The bill would not directly appropriate funds, but it could constrain future spending growth by changing the benchmark and formula used to determine allowable appropriations.

Sentiment

The available record shows the bill was referred to the House Appropriations Committee, with no recorded votes or committee transcript provided. Based on the bill’s subject matter, it appears to be a fiscal restraint measure intended to impose or clarify limits on state spending growth. Because there is no discussion or vote history in the provided materials, there is no documented public sentiment in the record beyond the bill’s referral for appropriations review.

Contention

The main point of potential contention is the bill’s effect on future budget flexibility. Supporters would likely view the measure as a way to enforce discipline in state spending and make the appropriations cap more predictable, while critics could argue that the revised base and formula may further restrict lawmakers’ ability to respond to changing needs or fund programs at a faster pace. Any disagreement would likely center on how strictly Texas should limit appropriations growth and whether the new calculation method is too restrictive or too favorable to spending restraint.