BILL ANALYSIS S.B. 8 By: Montford (Junell) 02-22-95 Committee Report (Unamended) BACKGROUND In order to free up funds for alternate purposes, the 73rd Legislature enacted legislation to delay the final payments of state funds for the current biennium to the Teacher Retirement System and the Employee Retirement System, the Foundation School Program, and certain institutions of higher learning. Almost $800 million was freed up as a result of the program. The comptroller has certified that a $2 billion surplus will appear on the state balance sheet in fiscal year 1995. As a result, the funds are available to make the payments in this biennium, thereby replacing the state back on the proper payment schedule. PURPOSE As proposed, S.B. 8 repeals legislation which deferred the payment of certain obligations to the following biennium and provides for an increased appropriation to fund payment of those obligations. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Repealer: Section 16.260(f), Education Code (Foundation School Fund Transfers). SECTION 2. Repealer: Section 403.0935 and 403.0936, Government Code (Account for Certain General Revenue Appropriations to Certain Institutions of Higher Education; General Revenue Appropriations to Public Junior Colleges). SECTION 3. Repealer: Section 5 and 6, Chapter 39, Acts of the 73rd Legislature, Regular Session, 1993. Section 5. Repeals provision that prohibits the comptroller from making monthly payments from any fund or account to the state Employees Retirement System of Texas during the summer months and requiring the deferred payment to be made in September. Sets forth the procedures for the comptroller regarding deferred payments. Section 6. Repeals the provision that prohibits the comptroller from making monthly payments from the general revenue fund for the Teacher Retirement System of Texas during the summer months and requiring a deferred payment to be made in September. Sets forth the procedures for the comptroller regarding deferred payments. SECTION 4. Provides that the estimated amount appropriated for the purpose provided by item A.1.1 of the appropriation to the state Employees Retirement Program for the fiscal year ending August 31, 1995, in the General Appropriations Act, is increased from $161,352,490 to $225,852,490. SECTION 5. Provides that the estimated amount appropriated for the purpose provided by item A.1.1 of the appropriation to the Teachers Retirement System for the fiscal year ending August 31, 1995, in the General Appropriations Act, is increased from $741,373,715 to $986,656,715. SECTION 6. Provides that an increase in an appropriation under Section 4 or 5 of this Act is funded from the same funds and accounts from which the original appropriation was funded. SECTION 7. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE ACTION S.B. 8 was considered in a public hearing before the full committee on February 23, 1995. The Chair laid out S.B. 8. No one testified for, on, or against the bill. The Chair moved to favorably report the bill to the Committee on Calendars. The bill was reported favorably to the Committee on Calendars with the recommendation that it do pass, by a vote of 24 aye, 0 nay, 0 PNV, and 3 absent.