Texas Constitutional Spending, Rainy Day Balance Limits Set

Legislators cannot allocate more than the spending limit in all the categories constrained by the Texas Constitution

  The Legislative Budget Board on Thursday set the constitutional spending limit at $99.8 billion for the upcoming legislative session.

The cap is based on a projected 8 percent growth in the state’s economy, down from 11.68 percent two years ago.

“Today’s vote will allow the Legislature to produce a balanced, responsible state budget,” said House Speaker Joe Straus in a statement. “It will also allow us to make strategic investments in priorities such as education, child protection and mental health care.”

Legislators cannot allocate more than the spending limit in all the categories constrained by the Texas Constitution.

The state budget is also constrained by the amount of revenue collected. Available revenue will be reported in the state comptroller’s biennial revenue estimate in January. 

Rainy day minimum set

A state legislative panel approved a $7.5 billion minimum balance for the Economic Stabilization Fund, also known as the rainy day fund, on Wednesday.

The select committee was established specifically to set the required balance for state savings for the upcoming legislative session. The rainy day fund currently has a balance of $10.1 billion.

This article originally published by Strategic Partnerships, Inc.