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