Bill Text: TX SB1425 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to periodic zero-based budgeting for certain political subdivisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-18 - Referred to Local Government [SB1425 Detail]
Download: Texas-2021-SB1425-Introduced.html
87R868 SCL-D | ||
By: Bettencourt | S.B. No. 1425 |
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relating to periodic zero-based budgeting for certain political | ||
subdivisions. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 44, Education Code, is | ||
amended by adding Section 44.0025 to read as follows: | ||
Sec. 44.0025. PERIODIC ZERO-BASED BUDGET REQUIRED FOR | ||
CERTAIN SCHOOL DISTRICTS AND COUNTY DEPARTMENTS OF EDUCATION; | ||
CONTENTS. (a) This section applies only to: | ||
(1) a school district with a student enrollment of | ||
50,000 or more; and | ||
(2) a county department of education in a county with a | ||
population of 3.3 million or more. | ||
(b) In addition to the required annual budget under Section | ||
44.002, the superintendent of the school district or county | ||
department of education shall prepare, in plain language and an | ||
easily readable and understandable format, a zero-based budget | ||
every 12th year that contains: | ||
(1) a description of the discrete activities the | ||
district or department conducts or performs with: | ||
(A) a justification for each activity by | ||
reference to a statute, rule, or other legal authority; and | ||
(B) an evaluation of the effectiveness and | ||
efficiency of the district's or department's policies, management, | ||
fiscal affairs, and operations in relation to each activity; | ||
(2) for each activity identified under Subdivision | ||
(1): | ||
(A) a quantitative estimate of any adverse | ||
effects that may reasonably be expected to result if the activity | ||
were discontinued, with a description of the methods by which the | ||
adverse effects were estimated; | ||
(B) an itemized account of expenditures required | ||
to maintain the activity at any minimum level of service required by | ||
statute, rule, or other legal authority, with a concise statement | ||
of the quantity and quality of service required at that minimum | ||
level; and | ||
(C) an itemized account of expenditures required | ||
to maintain the activity at the current level of service, with a | ||
concise statement of the quantity and quality of service provided | ||
at that level; | ||
(3) a ranking of activities identified under | ||
Subdivision (1) that illustrates the relative importance of each | ||
activity to the overall goals and purposes of the district or | ||
department at current service levels; and | ||
(4) recommendations to the board of trustees of the | ||
district or department regarding whether the district or department | ||
should continue funding each activity identified under Subdivision | ||
(1) and, if so, at what level. | ||
(c) The total amount of expenditures attributable to | ||
property tax revenue in the zero-based budget may not exceed the | ||
amount calculated by multiplying the no-new-revenue tax rate, as | ||
defined by Section 26.04, Tax Code, of the school district or county | ||
department of education by last year's total value, as defined by | ||
Section 26.012, Tax Code, for the district or department. | ||
(d) In preparing the zero-based budget, the superintendent | ||
of the school district or county department of education may | ||
require any district or department officer or employee to provide | ||
information necessary to properly prepare the budget. | ||
(e) The superintendent of the school district or county | ||
department of education shall file a copy of the zero-based budget | ||
with the agency on or before the date the proposed annual budget is | ||
filed, and the copy of the zero-based budget shall be available for | ||
public inspection in the district's or department's central | ||
administrative office. If the district or department maintains an | ||
Internet website, the district or department shall ensure that the | ||
zero-based budget is posted on the website. | ||
(f) At a public meeting held to adopt an annual budget, the | ||
board of trustees of the school district or county department of | ||
education shall consider information presented in the zero-based | ||
budget in addition to the proposed annual budget. | ||
SECTION 2. Chapter 102, Local Government Code, is amended | ||
by adding Section 102.0035 to read as follows: | ||
Sec. 102.0035. PERIODIC ZERO-BASED BUDGET REQUIRED; | ||
CONTENTS. (a) This section applies only to a municipality with a | ||
population of 225,000 or more. | ||
(b) In addition to the annual itemized budget required under | ||
Section 102.003, the budget officer shall prepare, in plain | ||
language and an easily readable and understandable format, a | ||
zero-based budget every 12th year that contains: | ||
(1) a description of the discrete activities the | ||
municipality conducts or performs with: | ||
(A) a justification for each activity by | ||
reference to a statute, charter provision, ordinance, or other | ||
legal authority; and | ||
(B) an evaluation of the effectiveness and | ||
efficiency of the municipality's policies, management, fiscal | ||
affairs, and operations in relation to each activity; | ||
(2) for each activity identified under Subdivision | ||
(1): | ||
(A) a quantitative estimate of any adverse | ||
effects that may reasonably be expected to result if the activity | ||
were discontinued, with a description of the methods by which the | ||
adverse effects were estimated; | ||
(B) an itemized account of expenditures required | ||
to maintain the activity at any minimum level of service required by | ||
statute, charter provision, ordinance, or other legal authority, | ||
with a concise statement of the quantity and quality of service | ||
required at that minimum level; and | ||
(C) an itemized account of expenditures required | ||
to maintain the activity at the current level of service, with a | ||
concise statement of the quantity and quality of service provided | ||
at that level; | ||
(3) a ranking of activities identified under | ||
Subdivision (1) that illustrates the relative importance of each | ||
activity to the overall goals and purposes of the municipality at | ||
current service levels; and | ||
(4) recommendations to the governing body of the | ||
municipality regarding whether the municipality should continue | ||
funding each activity identified under Subdivision (1) and, if so, | ||
at what level. | ||
(c) The total amount of expenditures attributable to | ||
property tax revenue in the zero-based budget may not exceed the | ||
amount calculated by multiplying the no-new-revenue tax rate, as | ||
defined by Section 26.04, Tax Code, of the municipality by last | ||
year's total value, as defined by Section 26.012, Tax Code, for the | ||
municipality. | ||
(d) In preparing the zero-based budget, the budget officer | ||
may require any municipal officer or board to provide information | ||
necessary for the budget officer to properly prepare the budget. | ||
(e) The budget officer shall file a copy of the zero-based | ||
budget with the municipal clerk on or before the date the proposed | ||
annual itemized budget is filed, and the copy of the zero-based | ||
budget shall be available for public inspection. If the | ||
municipality maintains an Internet website, the municipal clerk | ||
shall ensure that the zero-based budget is posted on the website. | ||
(f) At a public hearing held to adopt an annual itemized | ||
budget under this chapter, the governing body of the municipality | ||
shall consider information presented in the zero-based budget in | ||
addition to the proposed annual itemized budget. | ||
SECTION 3. Subchapter B, Chapter 111, Local Government | ||
Code, is amended by adding Section 111.0345 to read as follows: | ||
Sec. 111.0345. PERIODIC ZERO-BASED BUDGET REQUIRED; | ||
CONTENTS. (a) In addition to the annual itemized budget required | ||
under Section 111.034, the county auditor shall prepare, in plain | ||
language and an easily readable and understandable format, a | ||
zero-based budget every 12th year that contains: | ||
(1) a description of the discrete activities the | ||
county conducts or performs with: | ||
(A) a justification for each activity by | ||
reference to a statute, order, or other legal authority; and | ||
(B) an evaluation of the effectiveness and | ||
efficiency of the county's policies, management, fiscal affairs, | ||
and operations in relation to each activity; | ||
(2) for each activity identified under Subdivision | ||
(1): | ||
(A) a quantitative estimate of any adverse | ||
effects that may reasonably be expected to result if the activity | ||
were discontinued, with a description of the methods by which the | ||
adverse effects were estimated; | ||
(B) an itemized account of expenditures required | ||
to maintain the activity at any minimum level of service required by | ||
statute, order, or other legal authority, with a concise statement | ||
of the quantity and quality of service required at that minimum | ||
level; and | ||
(C) an itemized account of expenditures required | ||
to maintain the activity at the current level of service, with a | ||
concise statement of the quantity and quality of service provided | ||
at that level; | ||
(3) a ranking of activities identified under | ||
Subdivision (1) that illustrates the relative importance of each | ||
activity to the overall goals and purposes of the county at current | ||
service levels; and | ||
(4) recommendations to the commissioners court of the | ||
county regarding whether the county should continue funding each | ||
activity identified under Subdivision (1) and, if so, at what | ||
level. | ||
(b) The total amount of expenditures attributable to | ||
property tax revenue in the zero-based budget may not exceed the | ||
amount calculated by multiplying the no-new-revenue tax rate, as | ||
defined by Section 26.04, Tax Code, of the county by last year's | ||
total value, as defined by Section 26.012, Tax Code, for the county. | ||
(c) In preparing the zero-based budget, the county auditor | ||
may require any district, county, or precinct officer of the county | ||
to provide information necessary for the auditor to properly | ||
prepare the budget. | ||
(d) The county auditor shall file a copy of the zero-based | ||
budget with the county clerk on or before the date the proposed | ||
annual itemized budget is filed, and the copy of the zero-based | ||
budget shall be available for public inspection. If the county | ||
maintains an Internet website, the county clerk shall ensure that | ||
the zero-based budget is posted on the website. | ||
(e) At a public hearing held to adopt an annual itemized | ||
budget under this subchapter, the commissioners court shall | ||
consider information presented in the zero-based budget in addition | ||
to the proposed annual itemized budget. | ||
SECTION 4. Subchapter C, Chapter 111, Local Government | ||
Code, is amended by adding Section 111.0635 to read as follows: | ||
Sec. 111.0635. PERIODIC ZERO-BASED BUDGET REQUIRED; | ||
CONTENTS. (a) This section applies only to a county with a | ||
population of 225,000 or more. | ||
(b) In addition to the annual itemized budget required under | ||
Section 111.063, the budget officer shall prepare, in plain | ||
language and an easily readable and understandable format, a | ||
zero-based budget every 12th year that contains: | ||
(1) a description of the discrete activities the | ||
county conducts or performs with: | ||
(A) a justification for each activity by | ||
reference to a statute, order, or other legal authority; and | ||
(B) an evaluation of the effectiveness and | ||
efficiency of the county's policies, management, fiscal affairs, | ||
and operations in relation to each activity; | ||
(2) for each activity identified under Subdivision | ||
(1): | ||
(A) a quantitative estimate of any adverse | ||
effects that may reasonably be expected to result if the activity | ||
were discontinued, together with a description of the methods by | ||
which the adverse effects were estimated; | ||
(B) an itemized account of expenditures required | ||
to maintain the activity at any minimum level of service required by | ||
statute, order, or other legal authority, with a concise statement | ||
of the quantity and quality of service required at that minimum | ||
level; and | ||
(C) an itemized account of expenditures required | ||
to maintain the activity at the current level of service, with a | ||
concise statement of the quantity and quality of service provided | ||
at that level; | ||
(3) a ranking of activities identified under | ||
Subdivision (1) that illustrates the relative importance of each | ||
activity to the overall goals and purposes of the county at current | ||
service levels; and | ||
(4) recommendations to the commissioners court of the | ||
county regarding whether the county should continue funding each | ||
activity identified under Subdivision (1) and, if so, at what | ||
level. | ||
(c) The total amount of expenditures attributable to | ||
property tax revenue in the zero-based budget may not exceed the | ||
amount calculated by multiplying the no-new-revenue tax rate, as | ||
defined by Section 26.04, Tax Code, of the county by last year's | ||
total value, as defined by Section 26.012, Tax Code, for the county. | ||
(d) In preparing the zero-based budget, the budget officer | ||
may require the county auditor or any other district, county, or | ||
precinct officer of the county to provide information necessary for | ||
the budget officer to properly prepare the budget. | ||
(e) The budget officer shall file a copy of the zero-based | ||
budget with the county clerk and county auditor on or before the | ||
date the proposed annual itemized budget is filed, and the copy of | ||
the zero-based budget shall be available for public inspection. If | ||
the county maintains an Internet website, the county clerk shall | ||
ensure that the zero-based budget is posted on the website. | ||
(f) At a public hearing held to adopt an annual itemized | ||
budget under this subchapter, the commissioners court shall | ||
consider information presented in the zero-based budget in addition | ||
to the proposed annual itemized budget. | ||
SECTION 5. The superintendent of a school district or | ||
county department of education, the budget officer of a | ||
municipality, or the county auditor or budget officer of a county, | ||
as applicable, shall prepare an initial zero-based budget as | ||
described by Section 44.0025, Education Code, or Section 102.0035, | ||
111.0345, or 111.0635, Local Government Code, as added by this Act, | ||
as applicable, for the fiscal year beginning on or after September | ||
1, 2023. | ||
SECTION 6. This Act takes effect September 1, 2021. |