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The Conservative Texas Budget Talking Points

The Conservative Texas Budget sets spending limits based on an estimated 6.2 percent increase in population growth plus inflation during fiscal years 2013 and 2014.
The Conservative Texas Budget sets spending limits on state funds and all funds to avoid possible manipulation of the budget based on the volatility of federal funding and shifting items from general revenue funds to other areas of the budget.
Using TPPF’s The Real Texas Budget 2014-15 biennium spending numbers as a baseline and the 6.2 percent increase in population growth plus inflation, spending limits for the 2016-17 biennium are $140.5 billion on state funds and $214.4 billion on all funds.
The spending limit on state funds of $140.5 billion is an increase of $8.2 billion over 2014-15 biennium spending. The spending limit on all funds of $214.4 billion is an increase of $12.5 billion over current biennial spending.
When the 84th Texas Legislature convenes next year, it will be confronted with a surplus of unprecedented scale. Unless it limits spending growth to changes in key metrics that account for increases in basic public necessities like population growth plus inflation, spending may soar above Texas taxpayers’ long-term ability to afford it.
Texas’ economic growth and job creation have grown far faster than projected last December by the Texas Comptroller. While the Comptroller’s estimate then projected the state would end FY 2015 with a $2.6 billion surplus, more recent estimates place the surplus at almost $6 billion.
Increased local school district property appraisals could reduce the state’s share of K-12 education spending by roughly $4 billion during the next biennium. All told, these two amounts could result in $10 billion of extra money available to be spent in fiscal years 2015-17.
Instead of spending every dollar available, The Conservative Texas Budget sets clear and achievable spending limits on state funds and all funds.
According to TPPF research, states with low tax rates have higher economic, job creation, population, and tax revenue growth rates than states with higher tax rates. To sustain low taxes and avoid pressure to institute an income tax in Texas, legislators must restrain the growth of government spending.
While Texas has done relatively well in controlling spending compared to most other states, there is more the state can do.
Limiting growth of only a portion of state spending with a relatively high measure such as personal income can allow rapid growth in spending over time; state spending in Texas has increased by 62.7 percent since 2004. This increase is 8.8 percent greater than population growth plus inflation, costing Texans more than $8 billion this year. This is $300 per Texan, or $1,200 for a family of four.
By setting clear and achievable spending limits, The Conservative Texas Budget helps Texans restrain the growth of state government to sustain the Texas economic miracle.