Estimated Time to Read: 5 minutes
Crafting a state budget is one of the most crucial responsibilities of the Texas Legislature. Unlike the federal government, Texas is constitutionally required to maintain a balanced budget, meaning lawmakers cannot approve spending beyond projected revenue. Within this framework, the Texas House of Representatives has developed specific procedural rules to manage how budget amendments can be proposed and adopted. One of the most significant among these is what has come to be colloquially known as the “Put and Take” rule, which makes large spending cuts immensely difficult as a part of the overall appropriations process.
Ahead of the deliberation of the state budget by the overall House of Representatives, which this session will likely take place sometime around early April, House lawmakers will adopt such a provision as the “Put and Take” rule before consideration of the budget itself.
What Is the ‘Put and Take’ Rule?
The “Put and Take” rule is a budgeting principle applied during the amendment process in the Texas House of Representatives. The rule mandates that for every increase in spending (“put”), there must be a corresponding reduction elsewhere in the budget (“take”). This ensures that any additional expenditures proposed by lawmakers do not increase the overall size of the budget beyond the constitutional spending cap and available revenue estimates. By requiring lawmakers to identify cuts when proposing new spending, the rule aims to enforce fiscal discipline and encourage a more deliberate approach to budget allocations.
Why Does the ‘Put and Take’ Rule Exist?
The rule serves several important purposes. First, it maintains fiscal discipline by preventing unchecked spending and ensuring that lawmakers do not approve expenses that the state cannot afford. Second, it forces lawmakers to prioritize spending, requiring them to weigh the importance of their proposals against existing allocations. Finally, it ensures compliance with the Texas Constitution, which mandates a balanced budget and prohibits deficit spending. Without this rule, there would be a greater risk of overextending financial commitments beyond what the state’s revenue can support.
How Does the ‘Put and Take’ Rule Work in Practice?
When lawmakers propose amendments to the state budget legislation, they must specify where the additional funds will come from. Typically, this involves cutting funding from one program to allocate it to another, moving money within the same agency to adjust priorities, or shifting funds between different budget categories without increasing total spending. For example, if a lawmaker wants to allocate an additional $10 million to school security, they must identify $10 million in cuts from another part of the budget, such as administrative costs or lower-priority programs. This approach ensures that budget growth remains within set limits and that spending remains justified and accountable.
Challenges and Criticism of the Rule
While the “Put and Take” rule is designed to promote responsible budgeting, it is not without controversy. Some argue that it restricts legislative flexibility, making it difficult for lawmakers to fund critical new initiatives without making painful cuts elsewhere. Others contend that it favors the status quo, reinforcing existing budgetary constraints and making it harder to shift funding priorities in response to changing needs. Additionally, some lawmakers resort to creative accounting maneuvers to comply with the rule while still pushing for new spending, which can obscure the true financial impact of budget decisions.
Perhaps the most significant criticism of the rule is that, once the “Put and Take” motion is adopted, it ensures that an amendment merely seeking to reduce or cut the amount of overall spending is not in order without also “putting” the money somewhere else. In other words, by adopting the motion, lawmakers who might be seeking to cut the amount of spending proposed in the budget itself face an uphill battle. This effectively shields the overall budget size from being reduced and limits the ability of fiscal conservatives to push for smaller government. Instead of allowing a straightforward reduction in spending, the rule forces legislators to find alternative uses for the funds rather than simply cutting expenditures. This makes efforts to shrink government spending significantly more difficult, reinforcing a system where spending levels are largely maintained or reallocated rather than decreased outright.
Implications for Texas’ Budget Debates
The “Put and Take” rule plays a significant role in shaping budget discussions in the Texas House. It forces legislators to carefully justify their spending proposals and ensures that new allocations are balanced by reductions. However, it also places constraints on those who advocate for decreased overall spending, making it nearly impossible to cut expenditures without redirecting the funds elsewhere. This rule limits the ability of taxpayers and fiscal conservatives to push for more streamlined governance, ensuring that government spending remains largely intact rather than allowing for substantial reductions. Understanding this rule is essential for anyone following Texas’ budget debates, as it directly impacts how funds are allocated and priorities are set within the state government.
Conclusion
The “Put and Take” rule is a key feature of the Texas House budget process, ensuring that any new spending is offset by cuts elsewhere. While it promotes fiscal responsibility, it also presents challenges for legislators trying to address emerging needs. More importantly, it serves as a procedural barrier for those seeking to cut overall spending, as reductions must be accompanied by reallocations. This structure ultimately preserves the size of the budget and makes cutting overall expenditures an uphill battle. As budget debates unfold, the rule will continue to influence how lawmakers navigate the complexities of funding state programs while adhering to Texas’ strict balanced budget requirements.
Texas Policy Research relies on the support of generous donors across Texas.
If you found this information helpful, please consider supporting our efforts! Thank you!
