TPPF's Policy Orientation Recap & Texas' LBB Spending Limit: Let People Prosper Episode 64

In this Let People Prosper episode 64, let's discuss the Texas Public Policy Foundation's Policy Orientation, which was a sold out event that helps define the narrative for the 86th Texas Legislature, and highlight the recent spending limit set by the Legislative Budget Board.

The following are the panels that I moderated or participated in some capacity and my key takeaways with resources:

• Panel on the costs and mostly benefits of NAFTA. We need freer trade.
• Panel on TRS pension. There's a crisis coming with the Teacher Retirement System of Texas if nothing is done.
• Panel on property tax relief efforts. Must lower property taxes. See here how your property tax burden would decline over time with TPPF's plan. 
• Panel on the Texas state budget. The upcoming budget could be third straight Conservative Texas Budget but there are many demands for taxpayer dollars, which taxpayers should be prioritized in budget process for tax relief.
• Panel on spending limits. There is a need to reform the state's spending limit to one based on population growth and inflation so that the the tax burden better matches average taxpayer's ability to pay.
• Watch my brief speech of my life story and introduction of Americans for Tax Reform President Grover Norquist
• You can watch all of the keynote speeches and other panels here.

 The other big news on Friday was that the Legislative Budget Board (LBB) set the state's spending limit for the upcoming 2020-21 budget. This spending limit is on only general revenue not dedicated by the constitution which is less than half of the total budget. While statutorily the spending limit should be based on growth in personal income, last session the LBB chose the rate based on population growth and inflation. This time the spending limit is 9.89% for the 2020-21 budget, which is based on an increase of 8.39% in population growth and inflation and 1.5% for Harvey.

​This is another good sign that the LBB continues to use a measure for the limit that better matches the average taxpayer's ability to pay than the inappropriate growth rate of personal income.  This spending limit is in-line with the recent BRE increase of 8.1% in general revenue-related funds and provides funds available to cover needed expenses along with property tax relief. Specifically, the Legislature could use half of the funds of about $4.4 billion for spending and 90% of the rest of the funds of about $4.1 billion to buydown the school maintenance and operations property tax.