The Facts
* Incoming lawmakers look to have at least $2.6 billion potential surplus for the 2016-17 biennium.
* State spending growth since 2004-05 is 8.8% greater than what would have been spent over this period if total spending grew at the pace of population growth and inflation.
* Effectively solving the state’s budgeting difficulties will require bold leadership and vision guided by a principled approach, similar to the approach outlined in The Real Texas Budget.
* The TEL is ineffective because it excludes certain appropriations, is based on the estimated growth of personal income, and because of the ease with which lawmakers can get around it.
Recommendations
* Apply the TEL to all areas of Texas government spending.
* Base the limit on the growth rate of population plus inflation, personal income, or gross state product, whichever is less.
* Require a super majority vote of each chamber to exceed its limit rather than just a simple majority vote.