LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 13, 2025 TO: Honorable Ken King, Chair, House Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3371 by Metcalf (Relating to the recovery of certain state border security expenditures from the federal government.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Government Code to authorize the Office of the Governor (OOG) to apply for reimbursement from the United State Congress for expenses incurred related to securing the southern international border. The bill would authorize the Office of the Attorney General (OAG) to bring action to recover the amount if the amount requested is not repaid. The bill would direct any received reimbursement amount deposited to the state General Revenue Fund. According to the OOG and OAG, any costs associated with the bill could be absorbed using existing resources. The bill directs application for reimbursement totaling $11,260,000,000 related to the 2022-23 and 2024-25 state fiscal biennia. According to the Comptroller of Public Accounts, the amounts and timing of any payments that would be received from federal agencies are unknown.Note: Any increase in the federal funds flowing through the General Revenue Fund 0001 (GR) would increase the limit on the Economic Stabilization Fund (ESF) balance, increasing the amount of severance tax revenue subject to transfer from GR to the ESF. Therefore, depending on the timing and amount of the reimbursement, the total net gain to GR would be smaller than the gross amount of the reimbursement. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 300 Trusteed Programs Within the Office of the Governor, 302 Office of the Attorney General, 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, WP, LCO, KCu, NV LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 13, 2025 TO: Honorable Ken King, Chair, House Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3371 by Metcalf (Relating to the recovery of certain state border security expenditures from the federal government.), As Introduced TO: Honorable Ken King, Chair, House Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3371 by Metcalf (Relating to the recovery of certain state border security expenditures from the federal government.), As Introduced Honorable Ken King, Chair, House Committee on State Affairs Honorable Ken King, Chair, House Committee on State Affairs Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB3371 by Metcalf (Relating to the recovery of certain state border security expenditures from the federal government.), As Introduced HB3371 by Metcalf (Relating to the recovery of certain state border security expenditures from the federal government.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would amend the Government Code to authorize the Office of the Governor (OOG) to apply for reimbursement from the United State Congress for expenses incurred related to securing the southern international border. The bill would authorize the Office of the Attorney General (OAG) to bring action to recover the amount if the amount requested is not repaid. The bill would direct any received reimbursement amount deposited to the state General Revenue Fund. According to the OOG and OAG, any costs associated with the bill could be absorbed using existing resources. The bill directs application for reimbursement totaling $11,260,000,000 related to the 2022-23 and 2024-25 state fiscal biennia. According to the Comptroller of Public Accounts, the amounts and timing of any payments that would be received from federal agencies are unknown.Note: Any increase in the federal funds flowing through the General Revenue Fund 0001 (GR) would increase the limit on the Economic Stabilization Fund (ESF) balance, increasing the amount of severance tax revenue subject to transfer from GR to the ESF. Therefore, depending on the timing and amount of the reimbursement, the total net gain to GR would be smaller than the gross amount of the reimbursement. The bill would amend the Government Code to authorize the Office of the Governor (OOG) to apply for reimbursement from the United State Congress for expenses incurred related to securing the southern international border. The bill would authorize the Office of the Attorney General (OAG) to bring action to recover the amount if the amount requested is not repaid. The bill would direct any received reimbursement amount deposited to the state General Revenue Fund. According to the OOG and OAG, any costs associated with the bill could be absorbed using existing resources. The bill directs application for reimbursement totaling $11,260,000,000 related to the 2022-23 and 2024-25 state fiscal biennia. According to the Comptroller of Public Accounts, the amounts and timing of any payments that would be received from federal agencies are unknown.Note: Any increase in the federal funds flowing through the General Revenue Fund 0001 (GR) would increase the limit on the Economic Stabilization Fund (ESF) balance, increasing the amount of severance tax revenue subject to transfer from GR to the ESF. Therefore, depending on the timing and amount of the reimbursement, the total net gain to GR would be smaller than the gross amount of the reimbursement. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 300 Trusteed Programs Within the Office of the Governor, 302 Office of the Attorney General, 304 Comptroller of Public Accounts 300 Trusteed Programs Within the Office of the Governor, 302 Office of the Attorney General, 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, WP, LCO, KCu, NV JMc, WP, LCO, KCu, NV