Bill Text: TX SB641 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to periodic zero-based budgeting for certain political subdivisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-02-13 - Referred to Finance [SB641 Detail]
Download: Texas-2017-SB641-Introduced.html
| 85R1385 SCL-D | ||
| By: Bettencourt | S.B. No. 641 | |
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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 itemized budget, 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 quantitative estimate of any adverse effects that reasonably | ||
| may be expected to result if the activity were discontinued, | ||
| together with a description of the methods by which the adverse | ||
| effects were estimated; | ||
| (3) for each activity identified under Subdivision | ||
| (1), an itemized account of expenditures required to maintain the | ||
| activity at any minimum level of service required by statute, rule, | ||
| or other legal authority, together with a concise statement of the | ||
| quantity and quality of service required at that minimum level; | ||
| (4) for each activity identified under Subdivision | ||
| (1), an itemized account of expenditures required to maintain the | ||
| activity at the current level of service or performance, together | ||
| with a concise statement of the quantity and quality of service or | ||
| performance provided at that level; | ||
| (5) 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 | ||
| (6) 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) 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. | ||
| (d) 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 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 take action to ensure | ||
| that the zero-based budget is posted on the website. | ||
| (e) At a public meeting held to adopt a 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 budget. | ||
| SECTION 2. Chapter 102, Local Government Code, is amended | ||
| by adding Section 102.0055 to read as follows: | ||
| Sec. 102.0055. 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 quantitative estimate of any adverse effects that reasonably | ||
| may be expected to result if the activity were discontinued, | ||
| together with a description of the methods by which the adverse | ||
| effects were estimated; | ||
| (3) for each activity identified under Subdivision | ||
| (1), 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, together | ||
| with a concise statement of the quantity and quality of service | ||
| required at that minimum level; | ||
| (4) for each activity identified under Subdivision | ||
| (1), an itemized account of expenditures required to maintain the | ||
| activity at the current level of service or performance, together | ||
| with a concise statement of the quantity and quality of service or | ||
| performance provided at that level; | ||
| (5) 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 | ||
| (6) 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) 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. | ||
| (d) The budget officer shall file a copy of the zero-based | ||
| budget with the municipal clerk on or before the date the proposed | ||
| 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 take action to ensure | ||
| that the zero-based budget is posted on the website. | ||
| (e) At a public hearing held to adopt a budget under this | ||
| chapter, the governing body of the municipality shall consider | ||
| information presented in the zero-based budget in addition to the | ||
| proposed budget. | ||
| SECTION 3. Subchapter B, Chapter 111, Local Government | ||
| Code, is amended by adding Section 111.0375 to read as follows: | ||
| Sec. 111.0375. 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 quantitative estimate of any adverse effects that reasonably | ||
| may be expected to result if the activity were discontinued, | ||
| together with a description of the methods by which the adverse | ||
| effects were estimated; | ||
| (3) for each activity identified under Subdivision | ||
| (1), an itemized account of expenditures required to maintain the | ||
| activity at any minimum level of service required by statute, | ||
| order, or other legal authority, together with a concise statement | ||
| of the quantity and quality of service required at that minimum | ||
| level; | ||
| (4) for each activity identified under Subdivision | ||
| (1), an itemized account of expenditures required to maintain the | ||
| activity at the current level of service or performance, together | ||
| with a concise statement of the quantity and quality of service or | ||
| performance provided at that level; | ||
| (5) 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 | ||
| (6) 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) 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. | ||
| (c) The county auditor shall file a copy of the zero-based | ||
| budget with the county clerk on or before the date the proposed | ||
| 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 take action to ensure that | ||
| the zero-based budget is posted on the website. | ||
| (d) At a public hearing held to adopt a budget under this | ||
| subchapter, the commissioners court shall consider information | ||
| presented in the zero-based budget in addition to the proposed | ||
| budget. | ||
| SECTION 4. Subchapter C, Chapter 111, Local Government | ||
| Code, is amended by adding Section 111.0665 to read as follows: | ||
| Sec. 111.0665. 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 quantitative estimate of any adverse effects that reasonably | ||
| may be expected to result if the activity were discontinued, | ||
| together with a description of the methods by which the adverse | ||
| effects were estimated; | ||
| (3) for each activity identified under Subdivision | ||
| (1), an itemized account of expenditures required to maintain the | ||
| activity at any minimum level of service required by statute, | ||
| order, or other legal authority, together with a concise statement | ||
| of the quantity and quality of service required at that minimum | ||
| level; | ||
| (4) for each activity identified under Subdivision | ||
| (1), an itemized account of expenditures required to maintain the | ||
| activity at the current level of service or performance, together | ||
| with a concise statement of the quantity and quality of service or | ||
| performance provided at that level; | ||
| (5) 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 | ||
| (6) 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) 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. | ||
| (d) 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 budget is filed, and the copy of the zero-based | ||
| budget shall be available for public inspection. | ||
| (e) At a public hearing held to adopt a budget under this | ||
| subchapter, the commissioners court shall consider information | ||
| presented in the zero-based budget in addition to the proposed | ||
| 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 102.0055, | ||
| 111.0375, or 111.0665, Local Government Code, as added by this Act, | ||
| as applicable, for the fiscal year beginning on or after September | ||
| 1, 2019. | ||
| SECTION 6. This Act takes effect September 1, 2017. | ||
