May 26, 2015
Americans for Prosperity has long advocated for government spending limits tied to the increase in population and inflation.
Spending limits are the foundation for fiscal responsibility and are designed to reduce the dependence on government while growing the state’s economy. A solid spending limit will help ensure Texas’ economic success and maintain our status as a top state for job creation.
However, the spending limit passed in the House Appropriations Committee needs refining. CSSB 9 uses a method of calculation which is unnecessarily complicated and also ties the hand of future budget writers by limiting their ability to set spending priorities. CSSB 9 as passed by the House Appropriations Committee does not allow budget writers to spend less in select budget items from one year to the next and uses a yet-to-be-defined index in place of inflation. CSSB 9 as introduced last week in the formal committee meeting did not provide examples of methodology and sources used in the calculations.
The purpose of a state spending limit is to allow government to continue its appropriate functions while not placing undue burdens on the state taxpayers who are footing the bills.
AFP-Texas would support an amendment that allows government growth to be tied to the increase in the state population times the rate of inflation of the previous biennium and the upcoming biennium.
Spending limits are designed to protect both the taxpayer and the state economy. CSSB 9 as amended could do just that.