87R868 SCL-D
By: Bettencourt S.B. No. 1425
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 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.