Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB677 by Creighton (Relating to the savings incentive program for state agencies.), As Introduced
The bill would have no effect on revenue. The fiscal implications would vary by state agency depending on the amount of savings retained.
Although the bill would not make an appropriation, it would establish the basis for an appropriation.
The bill would amend Chapter 2108 of the Government Code, regarding the savings incentive program for state agencies.
Under current law, a state agency may retain up to one-fourth of the savings, as verified by the Comptroller, of unspent appropriated undedicated general revenue derived from nonfederal funds, but not more than one percent of the agency's appropriation from those revenue sources. In spending the savings an agency cannot create new or expanded services or require ongoing funding.
The bill's provisions would allow a state agency to retain up to one-half of any savings realized without regard to the one percent limitation. In addition, a state agency could use up to one-half of the savings to provide bonuses to agency employees following guidelines provided in the bill.
The bill would take effect September 1, 2015.
Local Government Impact
No fiscal implication to units of local government is anticipated.