LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 86TH LEGISLATIVE REGULAR SESSION
 
April 8, 2019

TO:
Honorable Jane Nelson, Chair, Senate Committee on Finance
 
FROM:
John McGeady, Assistant Director     Sarah Keyton, Assistant Director
Legislative Budget Board
 
IN RE:
SJR69 by Paxton (Proposing a constitutional amendment regarding the limitation on the rate of growth of appropriations and the use of surplus state revenue to provide for property tax relief and public school teacher compensation.), As Introduced

No significant fiscal implication to the State is anticipated, other than the cost of publication.

The cost to the state for publication of the resolution is $177,289.

The joint resolution would propose a constitutional amendment regarding the use of surplus state revenue to provide for property tax relief and public school teacher compensation.
 
The joint resolution would define "encumbered general revenue" for the purpose of calculating the unencumbered positive balance of general revenues.
 
Under current law, 50 percent of the unencumbered positive balance of general revenue on the last day of the preceding state fiscal biennium is transferred to the credit of the Economic Stabilization Fund; the remainder stays in General Revenue Fund and is available for general-purpose spending. The resolution would require the general revenue portion to instead be used in the following manner (1) 25 percent to provide compensation for teachers, counselors, and librarians employed in public schools; and (2) the remainder to provide ad valorem tax relief by reducing school district maintenance and operations ad valorem tax rates.

The 2020-21 Biennial Revenue Estimate does not project an unencumbered balance available for transfer in the upcoming 2020-21 biennium; therefore, the changes proposed in this resolution would have no revenue implications in the next biennium. In subsequent biennia, if there is an unencumbered balance, this resolution would have a negative fiscal impact as it would reduce the amounts available for general-purpose spending. The fiscal impact, however, cannot be estimated.
 
For purposes of implementing Section 49-g(b), Article III, Texas Constitution as added by SJR69, the Comptroller's office assumes that the unencumbered positive balance of general revenues is net of account balances dedicated under current law. Additionally, legally enforceable obligations of the state incurred on or before the last day of the biennium include encumbrances and accruals for all appropriations available under Section 403.071, Government Code
 
This proposed constitutional amendment would be submitted to the voters at an election to be held November 5, 2019.

Local Government Impact

No fiscal implication to units of local government is anticipated.


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