Legislative Budget Board agrees on State Spending Cap

Today in Austin, the Legislative Budget Board agreed on the state spending cap for the 2010-2011 biennium. The Legislative Budget Board is the bipartisan budget committee that develops the state budget before each Session of the State Legislature and monitors state economic growth in determining the proper growth of the state budget.

The Legislative Budget Board agreed unanimously to use the economic growth rate of 9.14% to apply for the 2010-2011 budget. The State Constitution dedicates appropriations and expenditures within the state budget. The non-dedicated state funds written into House Bill 1 for the 81st Legislature will be $79.6 billion unless there is a resolution to break this spending limit.

The 9.14% economic growth rate is less than the growth rate used by the Legislative Budget Board in 2006, which was 13.1%. In other words, while the economy is still growing in Texas, the Comptroller and the Legislative Budget Board believe the state's economy will grow at a slower pace than in the previous biennium.