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A BILL TO BE ENTITLED
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AN ACT
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relating to periodic zero-based budgeting for certain political |
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subdivisions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 44, Education Code, is |
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amended by adding Section 44.0025 to read as follows: |
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Sec. 44.0025. PERIODIC ZERO-BASED BUDGET REQUIRED; |
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CONTENTS. (a) This section applies only to a school district with |
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a student enrollment of 50,000 or more. |
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(b) In addition to the annual itemized budget required under |
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Section 44.002, the superintendent shall prepare a zero-based |
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budget every 12th year that contains: |
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(1) a description of the discrete activities the |
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school district conducts or performs with: |
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(A) a justification for each activity by |
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reference to a statute, rule, or other legal authority; and |
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(B) an evaluation of the effectiveness and |
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efficiency of the district's policies, management, fiscal affairs, |
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and operations in relation to each activity; |
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(2) for each activity identified under Subdivision |
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(1), a quantitative estimate of any adverse effects that reasonably |
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may be expected to result if the activity were discontinued, |
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together with a description of the methods by which the adverse |
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effects were estimated; |
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(3) for each activity identified under Subdivision |
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(1), an itemized account of expenditures required to maintain the |
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activity at any minimum level of service required by statute, rule, |
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or other legal authority, together with a concise statement of the |
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quantity and quality of service required at that minimum level; |
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(4) for each activity identified under Subdivision |
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(1), an itemized account of expenditures required to maintain the |
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activity at the current level of service or performance, together |
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with a concise statement of the quantity and quality of service or |
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performance provided at that level; |
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(5) a ranking of activities identified under |
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Subdivision (1) that illustrates the relative importance of each |
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activity to the overall goals and purposes of the school district at |
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current service levels; and |
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(6) recommendations to the board of trustees of the |
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school district regarding whether the district should continue |
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funding each activity identified under Subdivision (1) and, if so, |
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at what level. |
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(c) In preparing the zero-based budget, the superintendent |
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may require any school district officer or employee to provide |
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information necessary for the superintendent to properly prepare |
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the budget. |
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(d) The superintendent shall file a copy of the zero-based |
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budget with the agency on or before the date the proposed budget is |
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filed, and the copy of the zero-based budget shall be available for |
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public inspection in the school district's central administrative |
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office. If the district maintains an Internet website, the |
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district shall take action to ensure that the zero-based budget is |
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posted on the website. |
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(e) At a public meeting held to adopt a budget under this |
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subchapter, the board of trustees of the school district shall |
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consider information presented in the zero-based budget in addition |
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to the proposed budget. |
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SECTION 2. Chapter 102, Local Government Code, is amended |
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by adding Section 102.0055 to read as follows: |
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Sec. 102.0055. PERIODIC ZERO-BASED BUDGET REQUIRED; |
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CONTENTS. (a) This section applies only to a municipality with a |
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population of 225,000 or more. |
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(b) In addition to the annual itemized budget required under |
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Section 102.003, the budget officer shall prepare a zero-based |
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budget every 12th year that contains: |
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(1) a description of the discrete activities the |
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municipality conducts or performs with: |
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(A) a justification for each activity by |
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reference to a statute, charter provision, ordinance, or other |
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legal authority; and |
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(B) an evaluation of the effectiveness and |
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efficiency of the municipality's policies, management, fiscal |
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affairs, and operations in relation to each activity; |
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(2) for each activity identified under Subdivision |
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(1), a quantitative estimate of any adverse effects that reasonably |
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may be expected to result if the activity were discontinued, |
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together with a description of the methods by which the adverse |
|
effects were estimated; |
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(3) for each activity identified under Subdivision |
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(1), an itemized account of expenditures required to maintain the |
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activity at any minimum level of service required by statute, |
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charter provision, ordinance, or other legal authority, together |
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with a concise statement of the quantity and quality of service |
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required at that minimum level; |
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(4) for each activity identified under Subdivision |
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(1), an itemized account of expenditures required to maintain the |
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activity at the current level of service or performance, together |
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with a concise statement of the quantity and quality of service or |
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performance provided at that level; |
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(5) a ranking of activities identified under |
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Subdivision (1) that illustrates the relative importance of each |
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activity to the overall goals and purposes of the municipality at |
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current service levels; and |
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(6) recommendations to the governing body of the |
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municipality regarding whether the municipality should continue |
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funding each activity identified under Subdivision (1) and, if so, |
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at what level. |
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(c) In preparing the zero-based budget, the budget officer |
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may require any municipal officer or board to provide information |
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necessary for the budget officer to properly prepare the budget. |
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(d) The budget officer shall file a copy of the zero-based |
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budget with the municipal clerk on or before the date the proposed |
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budget is filed, and the copy of the zero-based budget shall be |
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available for public inspection. If the municipality maintains an |
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Internet website, the municipal clerk shall take action to ensure |
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that the zero-based budget is posted on the website. |
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(e) At a public hearing held to adopt a budget under this |
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subchapter, the governing body of the municipality shall consider |
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information presented in the zero-based budget in addition to the |
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proposed budget. |
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SECTION 3. Subchapter B, Chapter 111, Local Government |
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Code, is amended by adding Section 111.0375 to read as follows: |
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Sec. 111.0375. PERIODIC ZERO-BASED BUDGET REQUIRED; |
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CONTENTS. (a) In addition to the annual itemized budget required |
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under Section 111.034, the county auditor shall prepare a |
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zero-based budget every 12th year that contains: |
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(1) a description of the discrete activities the |
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county conducts or performs with: |
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(A) a justification for each activity by |
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reference to a statute, order, or other legal authority; and |
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(B) an evaluation of the effectiveness and |
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efficiency of the county's policies, management, fiscal affairs, |
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and operations in relation to each activity; |
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(2) for each activity identified under Subdivision |
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(1), a quantitative estimate of any adverse effects that reasonably |
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may be expected to result if the activity were discontinued, |
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together with a description of the methods by which the adverse |
|
effects were estimated; |
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(3) for each activity identified under Subdivision |
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(1), an itemized account of expenditures required to maintain the |
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activity at any minimum level of service required by statute, |
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order, or other legal authority, together with a concise statement |
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of the quantity and quality of service required at that minimum |
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level; |
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(4) for each activity identified under Subdivision |
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(1), an itemized account of expenditures required to maintain the |
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activity at the current level of service or performance, together |
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with a concise statement of the quantity and quality of service or |
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performance provided at that level; |
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(5) a ranking of activities identified under |
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Subdivision (1) that illustrates the relative importance of each |
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activity to the overall goals and purposes of the county at current |
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service levels; and |
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(6) recommendations to the commissioners court of the |
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county regarding whether the county should continue funding each |
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activity identified under Subdivision (1) and, if so, at what |
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level. |
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(b) In preparing the zero-based budget, the county auditor |
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may require any district, county, or precinct officer of the county |
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to provide information necessary for the auditor to properly |
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prepare the budget. |
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(c) The county auditor shall file a copy of the zero-based |
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budget with the county clerk on or before the date the proposed |
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budget is filed, and the copy of the zero-based budget shall be |
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available for public inspection. If the county maintains an |
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Internet website, the county clerk shall take action to ensure that |
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the zero-based budget is posted on the website. |
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(d) At a public hearing held to adopt a budget under this |
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subchapter, the commissioners court shall consider information |
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presented in the zero-based budget in addition to the proposed |
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budget. |
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SECTION 4. Subchapter C, Chapter 111, Local Government |
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Code, is amended by adding Section 111.0665 to read as follows: |
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Sec. 111.0665. PERIODIC ZERO-BASED BUDGET REQUIRED; |
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CONTENTS. (a) This section applies only to a county with a |
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population of 225,000 or more. |
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(b) In addition to the annual itemized budget required under |
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Section 111.063, the budget officer shall prepare a zero-based |
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budget every 12th year that contains: |
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(1) a description of the discrete activities the |
|
county conducts or performs with: |
|
(A) a justification for each activity by |
|
reference to a statute, order, or other legal authority; and |
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(B) an evaluation of the effectiveness and |
|
efficiency of the county's policies, management, fiscal affairs, |
|
and operations in relation to each activity; |
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(2) for each activity identified under Subdivision |
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(1), a quantitative estimate of any adverse effects that reasonably |
|
may be expected to result if the activity were discontinued, |
|
together with a description of the methods by which the adverse |
|
effects were estimated; |
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(3) for each activity identified under Subdivision |
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(1), an itemized account of expenditures required to maintain the |
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activity at any minimum level of service required by statute, |
|
order, or other legal authority, together with a concise statement |
|
of the quantity and quality of service required at that minimum |
|
level; |
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(4) for each activity identified under Subdivision |
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(1), an itemized account of expenditures required to maintain the |
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activity at the current level of service or performance, together |
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with a concise statement of the quantity and quality of service or |
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performance provided at that level; |
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(5) a ranking of activities identified under |
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Subdivision (1) that illustrates the relative importance of each |
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activity to the overall goals and purposes of the county at current |
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service levels; and |
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(6) recommendations to the commissioners court of the |
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county regarding whether the county should continue funding each |
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activity identified under Subdivision (1) and, if so, at what |
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level. |
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(c) In preparing the zero-based budget, the budget officer |
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may require the county auditor or any other district, county, or |
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precinct officer of the county to provide information necessary for |
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the budget officer to properly prepare the budget. |
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(d) The budget officer shall file a copy of the zero-based |
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budget with the county clerk and county auditor on or before the |
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date the proposed budget is filed, and the copy of the zero-based |
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budget shall be available for public inspection. |
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(e) At a public hearing held to adopt a budget under this |
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subchapter, the commissioners court shall consider information |
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presented in the zero-based budget in addition to the proposed |
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budget. |
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SECTION 5. The board of trustees of a school district, a |
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commissioners court, or a governing body of a municipality shall |
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adopt an initial zero-based budget as described by Section 44.0025, |
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Education Code, or Section 102.0055, 111.0375, or 111.0665, Local |
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Government Code, as added by this Act, as applicable, for the fiscal |
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year beginning on or after September 1, 2017. |
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SECTION 6. This Act takes effect September 1, 2015. |