Relating to zero-based budgeting for certain entities funded by this state and submission of a zero-based budget by and performance of a financial audit of an agency undergoing review by the Sunset Advisory Commission.
Impact
If enacted, HB 114 will significantly modify how state agencies budget, shifting from traditional incremental budgeting to a more rigorous process. Each agency will be required to submit detailed plans that outline the specific functions they perform, the resources required for these functions, and the impacts of potential service cuts. This could lead to a reevaluation of agency effectiveness, and may result in the abolition of underperforming agencies, as all agencies will have to justify their funding every third legislative session.
Summary
House Bill 114 introduces a framework for zero-based budgeting for certain state-funded entities, mandating that these entities submit zero-based budget plans to the Texas Legislative Budget Board (LBB). The proposed changes aim to enhance financial transparency and accountability by requiring a detailed justification of each budget item based on the actual needs rather than historical costs. This approach allows for a more dynamic allocation of resources, encouraging agencies to justify their existence and operations on a regular basis.
Contention
Potential points of contention surrounding the bill include concerns about the administrative burden placed on smaller agencies and the potential for significant changes to state agency operations. Some lawmakers may argue that middle or lower-tier agencies could struggle to produce comprehensive zero-based budgets, leading to disparities in funding and oversight. Further, critics may highlight that while zero-based budgeting may promote efficiency, it could also result in the loss of essential services if not implemented with thoughtful considerations of agency impacts.
Relating to requiring the Sunset Advisory Commission to assess the efforts of certain state agencies to reduce disparities in outcomes in the performance of agency functions.
Relating to requiring the Sunset Advisory Commission to assess the efforts of certain state agencies to reduce disparities in outcomes in the performance of agency functions.
Relating to the review date for certain governmental entities subject to the sunset review process and the regulation of horse racing by the Texas Racing Commission.
Relating to the procurement by local governments of energy savings performance contracts for certain conservation measures; creating criminal offenses; authorizing a fee.