LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION March 19, 2023 TO: Honorable Greg Bonnen, Chair, House Committee on Appropriations FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB30 by Huffman (Relating to supplemental appropriations and reductions in appropriations and giving direction and adjustment authority regarding appropriations.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for SB30, As Engrossed : a negative impact of ($11,701,800,330) through the biennium ending August 31, 2025. In addition, General Revenue Dedicated account balances available for certification are expected to increase by $363,723,496 during the 2022-23 biennium. Combined with the cost above, the bill would result in a net impact of ($11,338,076,834) to General Revenue Related funds available for certification through the biennium ending August 31, 2025. Appropriations: Fiscal Year Appropriation out ofGeneral Revenue Fund1 Appropriation out ofCoronavirus Relief Fund325 Appropriation out ofFederal Funds Appropriation out ofFoundation School Fund1932023$13,215,733,418$1,233,794,520$5,530,426,963($8,207,005,559)2024$0$0$0$02025$0$0$0$0Fiscal Year Appropriation out ofHazardous/Waste Remed Acc550 Appropriation out ofFlood Infrastructure Fund194 Appropriation out ofVarious General Revenue Dedicated Appropriation out ofVarious Other Funds2023$3,755,606$400,000,000$5,713,926$11,390,2742024$0$0$0$02025$0$0$0$0Fiscal Year Appropriation out ofDept Ins Operating Acct36 Appropriation out ofAppropriated Receipts8084 Appropriation out ofClean Air Account151 Appropriation out ofWater Resource Management1532023$2,506,918$493,086$452,561$129,3572024$0$0$0$02025$0$0$0$0Fiscal Year Appropriation out ofWatermaster Administration158 Appropriation out ofWaste Management Acct549 Appropriation out ofOperating Permit Fees Account5094 Appropriation out ofCoastal Protection Acct272023$160,000$51,200$89,537$55,0002024$0$0$0$02025$0$0$0$0Fiscal Year Appropriation out ofVeterans Land Adm Fd522 Appropriation out ofPermanent School Fund44 Appropriation out ofState Parks Acct64 Appropriation out ofLocal Parks Account4672023$50,000$45,000$9,714,457$18,5602024$0$0$0$02025$0$0$0$0Fiscal Year Appropriation out ofLrg County & Municipal Rec & Parks5150 Appropriation out ofGame,Fish,Water Safety Ac9 Appropriation out ofOil & Gas Regulation5155 Appropriation out ofTx Dept of Motor Vehicles Fnd102023$13,440$12,130,270$1,482,922$158,0002024$0$0$0$02025$0$0$0$0Fiscal Year Appropriation out ofState Highway Fund6 Appropriation out ofUnempl Comp Sp Adm Acct1652023$31,009,632$2,7502024$0$02025$0$0General Revenue-Related Funds, Six- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2023($7,472,462,349)2024($689,152,405)2025($3,540,185,576)2026$02027$02028$0All Funds, Six-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 Probable (Cost) fromGeneral Revenue Fund w.r.t. ESF transfers1 Probable (Cost) fromCoronavirus Relief Fund325 Probable (Cost) fromFederal Funds2023($13,615,733,418)$5,705,386,654($1,233,794,520)($5,530,426,963)2024$0($689,152,405)$0$02025$0($3,540,185,576)$0$02026$0$0$0$02027$0$0$0$02028$0$0$0$0Fiscal Year Probable Savings fromFoundation School Fund193 Probable (Cost) fromHazardous/Waste Remed Acc550 Probable (Cost) fromVarious General Revenue Dedicated Probable (Cost) fromVarious Other Funds2023$437,884,415($3,755,606)($5,713,926)($11,390,274)2024$0$0$0$02025$0$0$0$02026$0$0$0$02027$0$0$0$02028$0$0$0$0Fiscal Year Probable (Cost) fromDept Ins Operating Acct36 Probable (Cost) fromAppropriated Receipts8084 Probable (Cost) fromClean Air Account151 Probable (Cost) fromWater Resource Management1532023($2,506,918)($493,086)($452,561)($129,357)2024$0$0$0$02025$0$0$0$02026$0$0$0$02027$0$0$0$02028$0$0$0$0Fiscal Year Probable (Cost) fromWatermaster Administration158 Probable (Cost) fromWaste Management Acct549 Probable (Cost) fromOperating Permit Fees Account5094 Probable (Cost) fromCoastal Protection Acct272023($160,000)($51,200)($89,537)($55,000)2024$0$0$0$02025$0$0$0$02026$0$0$0$02027$0$0$0$02028$0$0$0$0Fiscal Year Probable (Cost) fromVeterans Land Adm Fd522 Probable (Cost) fromPermanent School Fund44 Probable (Cost) fromState Parks Acct64 Probable (Cost) fromLocal Parks Account4672023($50,000)($45,000)($9,714,457)($18,560)2024$0$0$0$02025$0$0$0$02026$0$0$0$02027$0$0$0$02028$0$0$0$0Fiscal Year Probable (Cost) fromLrg County & Municipal Rec & Parks5150 Probable (Cost) fromGame,Fish,Water Safety Ac9 Probable (Cost) fromOil & Gas Regulation5155 Probable (Cost) fromTx Dept of Motor Vehicles Fnd102023($13,440)($12,130,270)($1,482,922)($158,000)2024$0$0$0$02025$0$0$0$02026$0$0$0$02027$0$0$0$02028$0$0$0$0Fiscal Year Probable (Cost) fromState Highway Fund6 Probable (Cost) fromUnempl Comp Sp Adm Acct165 Probable Savings fromDeferred Maintenance5166 Probable Savings/(Cost) fromEconomic Stabilization Fund5992023($31,009,632)($2,750)$400,000,000$02024$0$0$0($5,705,387,000)2025$0$0$0$689,152,0002026$0$0$0$3,356,470,0002027$0$0$0$02028$0$0$0$0Fiscal Year Probable Revenue Gain/(Loss) fromEconomic Stabilization Fund - Interest Earnings599 Probable Revenue (Loss) fromEconomic Stabilization Fund - Investment Income5992023$0$02024($85,768,000)($90,971,000)2025$161,460,000($173,533,000)2026$0($128,325,000)2027$0($101,350,000)2028$0($105,374,000) Fiscal AnalysisThe bill would make supplemental appropriations, reductions in appropriations, and provide direction and adjustment authority regarding appropriations for the 2022-23 biennium.The bill would take effect immediately as provided for general appropriations act under Section 39, Article III, Texas Constitution. Sections of the bill that authorize appropriations or reauthorization of existing appropriations from the General Revenue and Economic Stabilization Funds take effect only if this bill receives a vote of two-thirds of the members present in each house of the Legislature, as provided by Section 49-g(m), Article III, Texas Constitution. Sections 4.05 and 8.51 of this Act take effect only if this Act receives a vote of two-thirds of the members present in each house of the legislature, as provided by Section 18(i), Article VII, Texas Constitution.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
March 19, 2023
TO: Honorable Greg Bonnen, Chair, House Committee on Appropriations FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB30 by Huffman (Relating to supplemental appropriations and reductions in appropriations and giving direction and adjustment authority regarding appropriations.), As Engrossed
TO: Honorable Greg Bonnen, Chair, House Committee on Appropriations
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB30 by Huffman (Relating to supplemental appropriations and reductions in appropriations and giving direction and adjustment authority regarding appropriations.), As Engrossed
Honorable Greg Bonnen, Chair, House Committee on Appropriations
Honorable Greg Bonnen, Chair, House Committee on Appropriations
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB30 by Huffman (Relating to supplemental appropriations and reductions in appropriations and giving direction and adjustment authority regarding appropriations.), As Engrossed
SB30 by Huffman (Relating to supplemental appropriations and reductions in appropriations and giving direction and adjustment authority regarding appropriations.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for SB30, As Engrossed : a negative impact of ($11,701,800,330) through the biennium ending August 31, 2025. In addition, General Revenue Dedicated account balances available for certification are expected to increase by $363,723,496 during the 2022-23 biennium. Combined with the cost above, the bill would result in a net impact of ($11,338,076,834) to General Revenue Related funds available for certification through the biennium ending August 31, 2025.
Estimated Two-year Net Impact to General Revenue Related Funds for SB30, As Engrossed : a negative impact of ($11,701,800,330) through the biennium ending August 31, 2025. In addition, General Revenue Dedicated account balances available for certification are expected to increase by $363,723,496 during the 2022-23 biennium. Combined with the cost above, the bill would result in a net impact of ($11,338,076,834) to General Revenue Related funds available for certification through the biennium ending August 31, 2025.
In addition, General Revenue Dedicated account balances available for certification are expected to increase by $363,723,496 during the 2022-23 biennium. Combined with the cost above, the bill would result in a net impact of ($11,338,076,834) to General Revenue Related funds available for certification through the biennium ending August 31, 2025.
Appropriations:
2023 $13,215,733,418 $1,233,794,520 $5,530,426,963 ($8,207,005,559)
2024 $0 $0 $0 $0
2025 $0 $0 $0 $0
2023 $3,755,606 $400,000,000 $5,713,926 $11,390,274
2024 $0 $0 $0 $0
2025 $0 $0 $0 $0
2023 $2,506,918 $493,086 $452,561 $129,357
2024 $0 $0 $0 $0
2025 $0 $0 $0 $0
2023 $160,000 $51,200 $89,537 $55,000
2024 $0 $0 $0 $0
2025 $0 $0 $0 $0
2023 $50,000 $45,000 $9,714,457 $18,560
2024 $0 $0 $0 $0
2025 $0 $0 $0 $0
2023 $13,440 $12,130,270 $1,482,922 $158,000
2024 $0 $0 $0 $0
2025 $0 $0 $0 $0
2023 $31,009,632 $2,750
2024 $0 $0
2025 $0 $0
General Revenue-Related Funds, Six- Year Impact:
2023 ($7,472,462,349)
2024 ($689,152,405)
2025 ($3,540,185,576)
2026 $0
2027 $0
2028 $0
All Funds, Six-Year Impact:
2023 ($13,615,733,418) $5,705,386,654 ($1,233,794,520) ($5,530,426,963)
2024 $0 ($689,152,405) $0 $0
2025 $0 ($3,540,185,576) $0 $0
2026 $0 $0 $0 $0
2027 $0 $0 $0 $0
2028 $0 $0 $0 $0
2023 $437,884,415 ($3,755,606) ($5,713,926) ($11,390,274)
2024 $0 $0 $0 $0
2025 $0 $0 $0 $0
2026 $0 $0 $0 $0
2027 $0 $0 $0 $0
2028 $0 $0 $0 $0
2023 ($2,506,918) ($493,086) ($452,561) ($129,357)
2024 $0 $0 $0 $0
2025 $0 $0 $0 $0
2026 $0 $0 $0 $0
2027 $0 $0 $0 $0
2028 $0 $0 $0 $0
2023 ($160,000) ($51,200) ($89,537) ($55,000)
2024 $0 $0 $0 $0
2025 $0 $0 $0 $0
2026 $0 $0 $0 $0
2027 $0 $0 $0 $0
2028 $0 $0 $0 $0
2023 ($50,000) ($45,000) ($9,714,457) ($18,560)
2024 $0 $0 $0 $0
2025 $0 $0 $0 $0
2026 $0 $0 $0 $0
2027 $0 $0 $0 $0
2028 $0 $0 $0 $0
2023 ($13,440) ($12,130,270) ($1,482,922) ($158,000)
2024 $0 $0 $0 $0
2025 $0 $0 $0 $0
2026 $0 $0 $0 $0
2027 $0 $0 $0 $0
2028 $0 $0 $0 $0
2023 ($31,009,632) ($2,750) $400,000,000 $0
2024 $0 $0 $0 ($5,705,387,000)
2025 $0 $0 $0 $689,152,000
2026 $0 $0 $0 $3,356,470,000
2027 $0 $0 $0 $0
2028 $0 $0 $0 $0
2023 $0 $0
2024 ($85,768,000) ($90,971,000)
2025 $161,460,000 ($173,533,000)
2026 $0 ($128,325,000)
2027 $0 ($101,350,000)
2028 $0 ($105,374,000)
Fiscal Analysis
The bill would make supplemental appropriations, reductions in appropriations, and provide direction and adjustment authority regarding appropriations for the 2022-23 biennium.The bill would take effect immediately as provided for general appropriations act under Section 39, Article III, Texas Constitution. Sections of the bill that authorize appropriations or reauthorization of existing appropriations from the General Revenue and Economic Stabilization Funds take effect only if this bill receives a vote of two-thirds of the members present in each house of the Legislature, as provided by Section 49-g(m), Article III, Texas Constitution. Sections 4.05 and 8.51 of this Act take effect only if this Act receives a vote of two-thirds of the members present in each house of the legislature, as provided by Section 18(i), Article VII, Texas Constitution.
Methodology
A portion of the $8.2 billion Foundation School Fund appropriation reduction has already been accounted for in the CPA's January 2025 Biennial Revenue Estimate (BRE). After taking that adjustment into account, the net effect of this appropriation reduction is a $437.9 million increase in General Revenue Related funds available for certification through the biennium ending August 31, 2025.Appropriations made in the bill would lower the CPA's BRE estimate of the 2022-23 ending unencumbered General Revenue (GR) balance. Consequentially, the estimated transfer of GR to the Economic Stabilization Fund (ESF) related to this balance would be eliminated, resulting in a $5.7 billion GR savings in FY 2023. Additionally, the elimination of this transfer to the ESF would result in that fund not reaching the constitutional maximum balance in 2024-25 as previously estimated in the BRE. Not reaching the ESF maximum balance would lower the reduction of the GR set-aside for the ESF severance tax related transfer and corresponding interest income, resulting in a GR cost of $0.7 billion in fiscal year 2024 and $3.5 billion in fiscal year 2025.
Appropriations made in the bill would lower the CPA's BRE estimate of the 2022-23 ending unencumbered General Revenue (GR) balance. Consequentially, the estimated transfer of GR to the Economic Stabilization Fund (ESF) related to this balance would be eliminated, resulting in a $5.7 billion GR savings in FY 2023.
Additionally, the elimination of this transfer to the ESF would result in that fund not reaching the constitutional maximum balance in 2024-25 as previously estimated in the BRE. Not reaching the ESF maximum balance would lower the reduction of the GR set-aside for the ESF severance tax related transfer and corresponding interest income, resulting in a GR cost of $0.7 billion in fiscal year 2024 and $3.5 billion in fiscal year 2025.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK
JMc, KK