Honorable Ron Wilson, Chair, House Committee on Ways & Means
John Keel, Director, Legislative Budget Board
HB2425 by McCall (Relating to state and certain local fiscal matters; making an appropriation.), Committee Report 1st House, Substituted
|Fiscal Year||Probable Net Positive/(Negative) Impact to General Revenue Related Funds|
|Fiscal Year||Probable Savings/(Cost) fromGENERAL REVENUE FUND
The bill would amend various provision of current law relating to state fiscal matters.
The savings shown above results from a provision related to interest paid under the prompt pay law.
The bill would repeal the statutory cap on borrowing related to temporary cash flow shortages in the general revenue fund. Currently the limit is twenty-five percent of revenues credited to the general revenue fund for the fiscal year. The bill would allow the Cash Management Committee to set the limit.
The bill would authorize the Comptroller to borrow certain funds managed by or in the custody of the Comptroller, including funds held outside the state treasury. The borrowing would be done in order to prevent temporary cash flow deficiencies in the general revenue fund. The bill would appropriate to the Comptroller from the general revenue fund amounts necessary to return the transferred cash and maintain the equity of funds from which transfers are made. Regardless of the period such funds are borrowed, interest is credited to the funds as if the borrowing did not take place. If the Comptroller submits a revenue estimate while cash transferred under this provision is in the general revenue fund, the Comptroller is required to indicate that the transferred revenue is not available for appropriation.
The bill would authorize the Comptroller to do performance audits of school districts and institutions of higher education without a request from the governing body of the school or institution.
It is possible that some of the money borrowed from outside the treasury under the Comptroller's expanded authority would be local government revenue such as local government sales tax revenue. The bill appropriates general revenue to repay the borrowing in fiscal year 2003 and fiscal years 2004 and 2005. After fiscal 2005, the impact on local governments would depend on legislative appropriations to repay any amounts borrowed from local governments funds held by the Comptroller.
The bill authorizes school districts to also contract for and implement the energy performance measures contained in the bill. Any costs to school districts could possibly be offset by savings from reduced energy consumption.
212 Office of Court Administration, Texas Judicial Council, 301 Office of the Governor, 304 Comptroller of Public Accounts, 327 Employees Retirement System, 696 Department of Criminal Justice, 701 Central Education Agency, 781 Higher Education Coordinating Board
JK, SD, WP, RS