LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
 
April 12, 2021

TO:
Honorable Greg Bonnen, Chair, House Committee on Appropriations
 
FROM:
Jerry McGinty, Director, Legislative Budget Board
 
IN RE:
HB2 by Bonnen (relating to making supplemental appropriations and reductions in appropriations and giving direction and adjustment authority regarding appropriations.), Committee Report 1st House, Substituted


Estimated Two-year Net Impact to General Revenue Related Funds for HB2, Committee Report 1st House, Substituted : a positive impact of $7,511,134,047 through the biennium ending August 31, 2023.

The bill's provisions would result in a net increase of $3,270,794,858 to the estimate of General
Revenue Related funds available for certification in the Biennial Revenue Estimate. 

Combining this increase with estimates of the related fiscal year 2020 lapses would result in a net 2020–21 biennial certification savings of $5,736,064,399 over estimates in the Biennial Revenue Estimate.



Appropriations:

Fiscal Year Appropriation out of
General Revenue Fund
1		 Appropriation out of
General Revenue Dedicated Accounts
 Appropriation out of
Federal Funds
8902		 Appropriation out of
Tx Dept of Motor Vehicles Fnd
10
2021($7,511,134,047)($63,384,156)$327,184,543$18,019,748
2022$0$0$0$0
2023$0$0$0$0

Fiscal Year Appropriation out of
Economic Stabilization Fund
599		 Appropriation out of
State Highway Fund
6		 Appropriation out of
TPFA Master Lease Prj Fund
735		 Appropriation out of
Telecommunications Revolving - AR
8123
2021$876,378,808$109,842,902$30,000$827,125
2022$0$0$0$0
2023$0$0$0$0



Fiscal Year Appropriation out of
Telecommunications Revolving - IAC
8125		 Appropriation out of
Statewide Technology Account - IAC
8126		 Appropriation out of
Statewide Network Apps Acct - AR
8143		 Appropriation out of
Revenue Bond Proceeds
8226
2021$56,728$229,982$39,595$23,719,160
2022$0$0$0$0
2023$0$0$0$0

Fiscal Year Appropriation out of
Interagency Contracts
 Appropriation out of
DIR Clearing Fund Account
8122
2021$246,420$581,051
2022$0$0
2023$0$0

General Revenue-Related Funds, Six- Year Impact:

Fiscal Year Probable Net Positive/(Negative) Impact to
General Revenue Related Funds
2021$7,511,134,047
2022$0
2023$0
2024$0
2025$0
2026$0

All Funds, Six-Year Impact:

Fiscal Year Probable Savings from
General Revenue Fund
1		 Probable Savings from
General Revenue Dedicated Accounts
 Probable (Cost) from
Federal Funds
8902		 Probable (Cost) from
Tx Dept of Motor Vehicles Fnd
10
2021$7,511,134,047$63,384,156($327,184,543)($18,019,748)
2022$0$0$0$0
2023$0$0$0$0
2024$0$0$0$0
2025$0$0$0$0
2026$0$0$0$0

Fiscal Year Probable (Cost) from
Economic Stabilization Fund
599		 Probable Revenue (Loss) from
Economic Stabilization Fund
599		 Probable (Cost) from
State Highway Fund
6		 Probable (Cost) from
TPFA Master Lease Prj Fund
735
2021($876,378,808)($657,192)($109,842,902)($30,000)
2022$0($29,045,000)$0$0
2023$0($14,664,000)$0$0
2024$0($14,880,000)$0$0
2025$0($15,099,000)$0$0
2026$0($15,152,000)$0$0



Fiscal Year Probable (Cost) from
Telecommunications Revolving - AR
8123		 Probable (Cost) from
Telecommunications Revolving - IAC
8125		 Probable (Cost) from
Statewide Technology Account - IAC
8126		 Probable (Cost) from
Statewide Network Apps Acct - AR
8143
2021($827,125)($56,728)($229,982)($39,595)
2022$0$0$0$0
2023$0$0$0$0
2024$0$0$0$0
2025$0$0$0$0
2026$0$0$0$0

Fiscal Year Probable (Cost) from
Revenue Bond Proceeds
8226		 Probable (Cost) from
Interagency Contracts
 Probable (Cost) from
DIR Clearing Fund Account
8122
2021($23,719,160)($246,420)($581,051)
2022$0$0$0
2023$0$0$0
2024$0$0$0
2025$0$0$0
2026$0$0$0


Fiscal Analysis

The bill would make supplemental appropriations, reductions in appropriations, and give direction and adjustment authority regarding appropriations. 

The bill would make net appropriations reductions of $7,511,134,047 from General Revenue Fund Account 0001 . The bill would make net appropriations reductions of $63,384,156 from General Revenue-Dedicated accounts.

The bill would increase appropriations from the Economic Stabilization Fund by $876,378,808.

The bill would increase appropriations from other funds and accounts not mentioned above by $480,777,254.

The bill would take effect immediately as provided for a general appropriations act under Section 39, Article III, Texas Constitution. Sections of the bill that authorize appropriations or reauthorization of existing appropriations from the Economic Stabilization Fund 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.

Methodology

A portion of the appropriation reduction at the Texas Education Agency related to the Foundation School Program was accounted for in the Comptroller's January 2021 Biennial Revenue Estimate (BRE).  Of the total FSP appropriation reduction, $1,169,480,000 was not accounted for in the BRE and represents an increase of revenue available for certification, relative to the BRE estimate.  The remaining increase in revenue available for certification relative to the BRE comes from appropriation reductions not accounted for in the BRE.

The Comptroller indicates there would be a loss of interest and investment income from the Economic Stabilization Fund resulting from the amounts appropriated from the ESF not being available for investment purposes.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
JMc, KK, SD