87R868 SCL-D
 
  By: Bettencourt S.B. No. 1425
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to periodic zero-based budgeting for certain political
  subdivisions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 44, Education Code, is
  amended by adding Section 44.0025 to read as follows:
         Sec. 44.0025.  PERIODIC ZERO-BASED BUDGET REQUIRED FOR
  CERTAIN SCHOOL DISTRICTS AND COUNTY DEPARTMENTS OF EDUCATION;
  CONTENTS. (a) This section applies only to:
               (1)  a school district with a student enrollment of
  50,000 or more; and
               (2)  a county department of education in a county with a
  population of 3.3 million or more.
         (b)  In addition to the required annual budget under Section
  44.002, the superintendent of the school district or county
  department of education shall prepare, in plain language and an
  easily readable and understandable format, a zero-based budget
  every 12th year that contains:
               (1)  a description of the discrete activities the
  district or department conducts or performs with:
                     (A)  a justification for each activity by
  reference to a statute, rule, or other legal authority; and
                     (B)  an evaluation of the effectiveness and
  efficiency of the district's or department's policies, management,
  fiscal affairs, and operations in relation to each activity;
               (2)  for each activity identified under Subdivision
  (1):
                     (A)  a quantitative estimate of any adverse
  effects that may reasonably be expected to result if the activity
  were discontinued, with a description of the methods by which the
  adverse effects were estimated;
                     (B)  an itemized account of expenditures required
  to maintain the activity at any minimum level of service required by
  statute, rule, or other legal authority, with a concise statement
  of the quantity and quality of service required at that minimum
  level; and
                     (C)  an itemized account of expenditures required
  to maintain the activity at the current level of service, with a
  concise statement of the quantity and quality of service provided
  at that level;
               (3)  a ranking of activities identified under
  Subdivision (1) that illustrates the relative importance of each
  activity to the overall goals and purposes of the district or
  department at current service levels; and
               (4)  recommendations to the board of trustees of the
  district or department regarding whether the district or department
  should continue funding each activity identified under Subdivision
  (1) and, if so, at what level.
         (c)  The total amount of expenditures attributable to
  property tax revenue in the zero-based budget may not exceed the
  amount calculated by multiplying the no-new-revenue tax rate, as
  defined by Section 26.04, Tax Code, of the school district or county
  department of education by last year's total value, as defined by
  Section 26.012, Tax Code, for the district or department.
         (d)  In preparing the zero-based budget, the superintendent
  of the school district or county department of education may
  require any district or department officer or employee to provide
  information necessary to properly prepare the budget.
         (e)  The superintendent of the school district or county
  department of education shall file a copy of the zero-based budget
  with the agency on or before the date the proposed annual budget is
  filed, and the copy of the zero-based budget shall be available for
  public inspection in the district's or department's central
  administrative office. If the district or department maintains an
  Internet website, the district or department shall ensure that the
  zero-based budget is posted on the website.
         (f)  At a public meeting held to adopt an annual budget, the
  board of trustees of the school district or county department of
  education shall consider information presented in the zero-based
  budget in addition to the proposed annual budget.
         SECTION 2.  Chapter 102, Local Government Code, is amended
  by adding Section 102.0035 to read as follows:
         Sec. 102.0035.  PERIODIC ZERO-BASED BUDGET REQUIRED;
  CONTENTS. (a) This section applies only to a municipality with a
  population of 225,000 or more.
         (b)  In addition to the annual itemized budget required under
  Section 102.003, the budget officer shall prepare, in plain
  language and an easily readable and understandable format, a
  zero-based budget every 12th year that contains:
               (1)  a description of the discrete activities the
  municipality conducts or performs with:
                     (A)  a justification for each activity by
  reference to a statute, charter provision, ordinance, or other
  legal authority; and
                     (B)  an evaluation of the effectiveness and
  efficiency of the municipality's policies, management, fiscal
  affairs, and operations in relation to each activity;
               (2)  for each activity identified under Subdivision
  (1):
                     (A)  a quantitative estimate of any adverse
  effects that may reasonably be expected to result if the activity
  were discontinued, with a description of the methods by which the
  adverse effects were estimated;
                     (B)  an itemized account of expenditures required
  to maintain the activity at any minimum level of service required by
  statute, charter provision, ordinance, or other legal authority,
  with a concise statement of the quantity and quality of service
  required at that minimum level; and
                     (C)  an itemized account of expenditures required
  to maintain the activity at the current level of service, with a
  concise statement of the quantity and quality of service provided
  at that level;
               (3)  a ranking of activities identified under
  Subdivision (1) that illustrates the relative importance of each
  activity to the overall goals and purposes of the municipality at
  current service levels; and
               (4)  recommendations to the governing body of the
  municipality regarding whether the municipality should continue
  funding each activity identified under Subdivision (1) and, if so,
  at what level.
         (c)  The total amount of expenditures attributable to
  property tax revenue in the zero-based budget may not exceed the
  amount calculated by multiplying the no-new-revenue tax rate, as
  defined by Section 26.04, Tax Code, of the municipality by last
  year's total value, as defined by Section 26.012, Tax Code, for the
  municipality.
         (d)  In preparing the zero-based budget, the budget officer
  may require any municipal officer or board to provide information
  necessary for the budget officer to properly prepare the budget.
         (e)  The budget officer shall file a copy of the zero-based
  budget with the municipal clerk on or before the date the proposed
  annual itemized budget is filed, and the copy of the zero-based
  budget shall be available for public inspection. If the
  municipality maintains an Internet website, the municipal clerk
  shall ensure that the zero-based budget is posted on the website.
         (f)  At a public hearing held to adopt an annual itemized
  budget under this chapter, the governing body of the municipality
  shall consider information presented in the zero-based budget in
  addition to the proposed annual itemized budget.
         SECTION 3.  Subchapter B, Chapter 111, Local Government
  Code, is amended by adding Section 111.0345 to read as follows:
         Sec. 111.0345.  PERIODIC ZERO-BASED BUDGET REQUIRED;
  CONTENTS. (a) In addition to the annual itemized budget required
  under Section 111.034, the county auditor shall prepare, in plain
  language and an easily readable and understandable format, a
  zero-based budget every 12th year that contains:
               (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
                     (B)  an evaluation of the effectiveness and
  efficiency of the county's policies, management, fiscal affairs,
  and operations in relation to each activity;
               (2)  for each activity identified under Subdivision
  (1):
                     (A)  a quantitative estimate of any adverse
  effects that may reasonably be expected to result if the activity
  were discontinued, with a description of the methods by which the
  adverse effects were estimated;
                     (B)  an itemized account of expenditures required
  to maintain the activity at any minimum level of service required by
  statute, order, or other legal authority, with a concise statement
  of the quantity and quality of service required at that minimum
  level; and
                     (C)  an itemized account of expenditures required
  to maintain the activity at the current level of service, with a
  concise statement of the quantity and quality of service provided
  at that level;
               (3)  a ranking of activities identified under
  Subdivision (1) that illustrates the relative importance of each
  activity to the overall goals and purposes of the county at current
  service levels; and
               (4)  recommendations to the commissioners court of the
  county regarding whether the county should continue funding each
  activity identified under Subdivision (1) and, if so, at what
  level.
         (b)  The total amount of expenditures attributable to
  property tax revenue in the zero-based budget may not exceed the
  amount calculated by multiplying the no-new-revenue tax rate, as
  defined by Section 26.04, Tax Code, of the county by last year's
  total value, as defined by Section 26.012, Tax Code, for the county.
         (c)  In preparing the zero-based budget, the county auditor
  may require any district, county, or precinct officer of the county
  to provide information necessary for the auditor to properly
  prepare the budget.
         (d)  The county auditor shall file a copy of the zero-based
  budget with the county clerk on or before the date the proposed
  annual itemized budget is filed, and the copy of the zero-based
  budget shall be available for public inspection. If the county
  maintains an Internet website, the county clerk shall ensure that
  the zero-based budget is posted on the website.
         (e)  At a public hearing held to adopt an annual itemized
  budget under this subchapter, the commissioners court shall
  consider information presented in the zero-based budget in addition
  to the proposed annual itemized budget.
         SECTION 4.  Subchapter C, Chapter 111, Local Government
  Code, is amended by adding Section 111.0635 to read as follows:
         Sec. 111.0635.  PERIODIC ZERO-BASED BUDGET REQUIRED;
  CONTENTS. (a) This section applies only to a county with a
  population of 225,000 or more.
         (b)  In addition to the annual itemized budget required under
  Section 111.063, the budget officer shall prepare, in plain
  language and an easily readable and understandable format, a
  zero-based budget every 12th year that contains:
               (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
                     (B)  an evaluation of the effectiveness and
  efficiency of the county's policies, management, fiscal affairs,
  and operations in relation to each activity;
               (2)  for each activity identified under Subdivision
  (1):
                     (A)  a quantitative estimate of any adverse
  effects that may reasonably be expected to result if the activity
  were discontinued, together with a description of the methods by
  which the adverse effects were estimated;
                     (B)  an itemized account of expenditures required
  to maintain the activity at any minimum level of service required by
  statute, order, or other legal authority, with a concise statement
  of the quantity and quality of service required at that minimum
  level; and
                     (C)  an itemized account of expenditures required
  to maintain the activity at the current level of service, with a
  concise statement of the quantity and quality of service provided
  at that level;
               (3)  a ranking of activities identified under
  Subdivision (1) that illustrates the relative importance of each
  activity to the overall goals and purposes of the county at current
  service levels; and
               (4)  recommendations to the commissioners court of the
  county regarding whether the county should continue funding each
  activity identified under Subdivision (1) and, if so, at what
  level.
         (c)  The total amount of expenditures attributable to
  property tax revenue in the zero-based budget may not exceed the
  amount calculated by multiplying the no-new-revenue tax rate, as
  defined by Section 26.04, Tax Code, of the county by last year's
  total value, as defined by Section 26.012, Tax Code, for the county.
         (d)  In preparing the zero-based budget, the budget officer
  may require the county auditor or any other district, county, or
  precinct officer of the county to provide information necessary for
  the budget officer to properly prepare the budget.
         (e)  The budget officer shall file a copy of the zero-based
  budget with the county clerk and county auditor on or before the
  date the proposed annual itemized budget is filed, and the copy of
  the zero-based budget shall be available for public inspection. If
  the county maintains an Internet website, the county clerk shall
  ensure that the zero-based budget is posted on the website.
         (f)  At a public hearing held to adopt an annual itemized
  budget under this subchapter, the commissioners court shall
  consider information presented in the zero-based budget in addition
  to the proposed annual itemized budget.
         SECTION 5.  The superintendent of a school district or
  county department of education, the budget officer of a
  municipality, or the county auditor or budget officer of a county,
  as applicable, shall prepare an initial zero-based budget as
  described by Section 44.0025, Education Code, or Section 102.0035,
  111.0345, or 111.0635, Local Government Code, as added by this Act,
  as applicable, for the fiscal year beginning on or after September
  1, 2023.
         SECTION 6.  This Act takes effect September 1, 2021.