Texas 2021 - 87th Regular

Texas Senate Bill SB1425 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R868 SCL-D
2	2	By: Bettencourt S.B. No. 1425
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to periodic zero-based budgeting for certain political
8	8	subdivisions.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter A, Chapter 44, Education Code, is
11	11	amended by adding Section 44.0025 to read as follows:
12	12	Sec. 44.0025. PERIODIC ZERO-BASED BUDGET REQUIRED FOR
13	13	CERTAIN SCHOOL DISTRICTS AND COUNTY DEPARTMENTS OF EDUCATION;
14	14	CONTENTS. (a) This section applies only to:
15	15	(1) a school district with a student enrollment of
16	16	50,000 or more; and
17	17	(2) a county department of education in a county with a
18	18	population of 3.3 million or more.
19	19	(b) In addition to the required annual budget under Section
20	20	44.002, the superintendent of the school district or county
21	21	department of education shall prepare, in plain language and an
22	22	easily readable and understandable format, a zero-based budget
23	23	every 12th year that contains:
24	24	(1) a description of the discrete activities the
25	25	district or department conducts or performs with:
26	26	(A) a justification for each activity by
27	27	reference to a statute, rule, or other legal authority; and
28	28	(B) an evaluation of the effectiveness and
29	29	efficiency of the district's or department's policies, management,
30	30	fiscal affairs, and operations in relation to each activity;
31	31	(2) for each activity identified under Subdivision
32	32	(1):
33	33	(A) a quantitative estimate of any adverse
34	34	effects that may reasonably be expected to result if the activity
35	35	were discontinued, with a description of the methods by which the
36	36	adverse effects were estimated;
37	37	(B) an itemized account of expenditures required
38	38	to maintain the activity at any minimum level of service required by
39	39	statute, rule, or other legal authority, with a concise statement
40	40	of the quantity and quality of service required at that minimum
41	41	level; and
42	42	(C) an itemized account of expenditures required
43	43	to maintain the activity at the current level of service, with a
44	44	concise statement of the quantity and quality of service provided
45	45	at that level;
46	46	(3) a ranking of activities identified under
47	47	Subdivision (1) that illustrates the relative importance of each
48	48	activity to the overall goals and purposes of the district or
49	49	department at current service levels; and
50	50	(4) recommendations to the board of trustees of the
51	51	district or department regarding whether the district or department
52	52	should continue funding each activity identified under Subdivision
53	53	(1) and, if so, at what level.
54	54	(c) The total amount of expenditures attributable to
55	55	property tax revenue in the zero-based budget may not exceed the
56	56	amount calculated by multiplying the no-new-revenue tax rate, as
57	57	defined by Section 26.04, Tax Code, of the school district or county
58	58	department of education by last year's total value, as defined by
59	59	Section 26.012, Tax Code, for the district or department.
60	60	(d) In preparing the zero-based budget, the superintendent
61	61	of the school district or county department of education may
62	62	require any district or department officer or employee to provide
63	63	information necessary to properly prepare the budget.
64	64	(e) The superintendent of the school district or county
65	65	department of education shall file a copy of the zero-based budget
66	66	with the agency on or before the date the proposed annual budget is
67	67	filed, and the copy of the zero-based budget shall be available for
68	68	public inspection in the district's or department's central
69	69	administrative office. If the district or department maintains an
70	70	Internet website, the district or department shall ensure that the
71	71	zero-based budget is posted on the website.
72	72	(f) At a public meeting held to adopt an annual budget, the
73	73	board of trustees of the school district or county department of
74	74	education shall consider information presented in the zero-based
75	75	budget in addition to the proposed annual budget.
76	76	SECTION 2. Chapter 102, Local Government Code, is amended
77	77	by adding Section 102.0035 to read as follows:
78	78	Sec. 102.0035. PERIODIC ZERO-BASED BUDGET REQUIRED;
79	79	CONTENTS. (a) This section applies only to a municipality with a
80	80	population of 225,000 or more.
81	81	(b) In addition to the annual itemized budget required under
82	82	Section 102.003, the budget officer shall prepare, in plain
83	83	language and an easily readable and understandable format, a
84	84	zero-based budget every 12th year that contains:
85	85	(1) a description of the discrete activities the
86	86	municipality conducts or performs with:
87	87	(A) a justification for each activity by
88	88	reference to a statute, charter provision, ordinance, or other
89	89	legal authority; and
90	90	(B) an evaluation of the effectiveness and
91	91	efficiency of the municipality's policies, management, fiscal
92	92	affairs, and operations in relation to each activity;
93	93	(2) for each activity identified under Subdivision
94	94	(1):
95	95	(A) a quantitative estimate of any adverse
96	96	effects that may reasonably be expected to result if the activity
97	97	were discontinued, with a description of the methods by which the
98	98	adverse effects were estimated;
99	99	(B) an itemized account of expenditures required
100	100	to maintain the activity at any minimum level of service required by
101	101	statute, charter provision, ordinance, or other legal authority,
102	102	with a concise statement of the quantity and quality of service
103	103	required at that minimum level; and
104	104	(C) an itemized account of expenditures required
105	105	to maintain the activity at the current level of service, with a
106	106	concise statement of the quantity and quality of service provided
107	107	at that level;
108	108	(3) a ranking of activities identified under
109	109	Subdivision (1) that illustrates the relative importance of each
110	110	activity to the overall goals and purposes of the municipality at
111	111	current service levels; and
112	112	(4) recommendations to the governing body of the
113	113	municipality regarding whether the municipality should continue
114	114	funding each activity identified under Subdivision (1) and, if so,
115	115	at what level.
116	116	(c) The total amount of expenditures attributable to
117	117	property tax revenue in the zero-based budget may not exceed the
118	118	amount calculated by multiplying the no-new-revenue tax rate, as
119	119	defined by Section 26.04, Tax Code, of the municipality by last
120	120	year's total value, as defined by Section 26.012, Tax Code, for the
121	121	municipality.
122	122	(d) In preparing the zero-based budget, the budget officer
123	123	may require any municipal officer or board to provide information
124	124	necessary for the budget officer to properly prepare the budget.
125	125	(e) The budget officer shall file a copy of the zero-based
126	126	budget with the municipal clerk on or before the date the proposed
127	127	annual itemized budget is filed, and the copy of the zero-based
128	128	budget shall be available for public inspection. If the
129	129	municipality maintains an Internet website, the municipal clerk
130	130	shall ensure that the zero-based budget is posted on the website.
131	131	(f) At a public hearing held to adopt an annual itemized
132	132	budget under this chapter, the governing body of the municipality
133	133	shall consider information presented in the zero-based budget in
134	134	addition to the proposed annual itemized budget.
135	135	SECTION 3. Subchapter B, Chapter 111, Local Government
136	136	Code, is amended by adding Section 111.0345 to read as follows:
137	137	Sec. 111.0345. PERIODIC ZERO-BASED BUDGET REQUIRED;
138	138	CONTENTS. (a) In addition to the annual itemized budget required
139	139	under Section 111.034, the county auditor shall prepare, in plain
140	140	language and an easily readable and understandable format, a
141	141	zero-based budget every 12th year that contains:
142	142	(1) a description of the discrete activities the
143	143	county conducts or performs with:
144	144	(A) a justification for each activity by
145	145	reference to a statute, order, or other legal authority; and
146	146	(B) an evaluation of the effectiveness and
147	147	efficiency of the county's policies, management, fiscal affairs,
148	148	and operations in relation to each activity;
149	149	(2) for each activity identified under Subdivision
150	150	(1):
151	151	(A) a quantitative estimate of any adverse
152	152	effects that may reasonably be expected to result if the activity
153	153	were discontinued, with a description of the methods by which the
154	154	adverse effects were estimated;
155	155	(B) an itemized account of expenditures required
156	156	to maintain the activity at any minimum level of service required by
157	157	statute, order, or other legal authority, with a concise statement
158	158	of the quantity and quality of service required at that minimum
159	159	level; and
160	160	(C) an itemized account of expenditures required
161	161	to maintain the activity at the current level of service, with a
162	162	concise statement of the quantity and quality of service provided
163	163	at that level;
164	164	(3) a ranking of activities identified under
165	165	Subdivision (1) that illustrates the relative importance of each
166	166	activity to the overall goals and purposes of the county at current
167	167	service levels; and
168	168	(4) recommendations to the commissioners court of the
169	169	county regarding whether the county should continue funding each
170	170	activity identified under Subdivision (1) and, if so, at what
171	171	level.
172	172	(b) The total amount of expenditures attributable to
173	173	property tax revenue in the zero-based budget may not exceed the
174	174	amount calculated by multiplying the no-new-revenue tax rate, as
175	175	defined by Section 26.04, Tax Code, of the county by last year's
176	176	total value, as defined by Section 26.012, Tax Code, for the county.
177	177	(c) In preparing the zero-based budget, the county auditor
178	178	may require any district, county, or precinct officer of the county
179	179	to provide information necessary for the auditor to properly
180	180	prepare the budget.
181	181	(d) The county auditor shall file a copy of the zero-based
182	182	budget with the county clerk on or before the date the proposed
183	183	annual itemized budget is filed, and the copy of the zero-based
184	184	budget shall be available for public inspection. If the county
185	185	maintains an Internet website, the county clerk shall ensure that
186	186	the zero-based budget is posted on the website.
187	187	(e) At a public hearing held to adopt an annual itemized
188	188	budget under this subchapter, the commissioners court shall
189	189	consider information presented in the zero-based budget in addition
190	190	to the proposed annual itemized budget.
191	191	SECTION 4. Subchapter C, Chapter 111, Local Government
192	192	Code, is amended by adding Section 111.0635 to read as follows:
193	193	Sec. 111.0635. PERIODIC ZERO-BASED BUDGET REQUIRED;
194	194	CONTENTS. (a) This section applies only to a county with a
195	195	population of 225,000 or more.
196	196	(b) In addition to the annual itemized budget required under
197	197	Section 111.063, the budget officer shall prepare, in plain
198	198	language and an easily readable and understandable format, a
199	199	zero-based budget every 12th year that contains:
200	200	(1) a description of the discrete activities the
201	201	county conducts or performs with:
202	202	(A) a justification for each activity by
203	203	reference to a statute, order, or other legal authority; and
204	204	(B) an evaluation of the effectiveness and
205	205	efficiency of the county's policies, management, fiscal affairs,
206	206	and operations in relation to each activity;
207	207	(2) for each activity identified under Subdivision
208	208	(1):
209	209	(A) a quantitative estimate of any adverse
210	210	effects that may reasonably be expected to result if the activity
211	211	were discontinued, together with a description of the methods by
212	212	which the adverse effects were estimated;
213	213	(B) an itemized account of expenditures required
214	214	to maintain the activity at any minimum level of service required by
215	215	statute, order, or other legal authority, with a concise statement
216	216	of the quantity and quality of service required at that minimum
217	217	level; and
218	218	(C) an itemized account of expenditures required
219	219	to maintain the activity at the current level of service, with a
220	220	concise statement of the quantity and quality of service provided
221	221	at that level;
222	222	(3) a ranking of activities identified under
223	223	Subdivision (1) that illustrates the relative importance of each
224	224	activity to the overall goals and purposes of the county at current
225	225	service levels; and
226	226	(4) recommendations to the commissioners court of the
227	227	county regarding whether the county should continue funding each
228	228	activity identified under Subdivision (1) and, if so, at what
229	229	level.
230	230	(c) The total amount of expenditures attributable to
231	231	property tax revenue in the zero-based budget may not exceed the
232	232	amount calculated by multiplying the no-new-revenue tax rate, as
233	233	defined by Section 26.04, Tax Code, of the county by last year's
234	234	total value, as defined by Section 26.012, Tax Code, for the county.
235	235	(d) In preparing the zero-based budget, the budget officer
236	236	may require the county auditor or any other district, county, or
237	237	precinct officer of the county to provide information necessary for
238	238	the budget officer to properly prepare the budget.
239	239	(e) The budget officer shall file a copy of the zero-based
240	240	budget with the county clerk and county auditor on or before the
241	241	date the proposed annual itemized budget is filed, and the copy of
242	242	the zero-based budget shall be available for public inspection. If
243	243	the county maintains an Internet website, the county clerk shall
244	244	ensure that the zero-based budget is posted on the website.
245	245	(f) At a public hearing held to adopt an annual itemized
246	246	budget under this subchapter, the commissioners court shall
247	247	consider information presented in the zero-based budget in addition
248	248	to the proposed annual itemized budget.
249	249	SECTION 5. The superintendent of a school district or
250	250	county department of education, the budget officer of a
251	251	municipality, or the county auditor or budget officer of a county,
252	252	as applicable, shall prepare an initial zero-based budget as
253	253	described by Section 44.0025, Education Code, or Section 102.0035,
254	254	111.0345, or 111.0635, Local Government Code, as added by this Act,
255	255	as applicable, for the fiscal year beginning on or after September
256	256	1, 2023.
257	257	SECTION 6. This Act takes effect September 1, 2021.