85R1385 SCL-D
By: Bettencourt S.B. No. 641
A BILL TO BE ENTITLED
AN ACT
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.