LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION

April 7, 2021

TO:	Honorable Greg Bonnen, Chair, House Committee on Appropriations
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB2 by Bonnen (Relating to making supplemental appropriations and reductions in appropriations and giving direction and adjustment authority regarding appropriations.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB2, As Introduced : a positive impact of $6,526,294,079 through the biennium ending August 31, 2023.

The bill's provisions would result in a net increase of $2,296,719,419 to the estimate of General Revenue-Related funds available for certification in the January 2021 Biennial Revenue Estimate.

Appropriations:

Fiscal Year	Appropriation out of General Revenue Fund 1	Appropriation out of General Revenue Dedicated Accounts	Appropriation out of Economic Stabilization Fund 599
2021	($6,526,294,079)	($74,302,163)	$100,400,000
2022	$0	$0	$0
2023	$0	$0	$0

General Revenue-Related Funds, Six- Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2021	$6,526,294,079
2022	$0
2023	$0
2024	$0
2025	$0
2026	$0

All Funds, Six-Year Impact:

Fiscal Year	Probable Savings from General Revenue Fund 1	Probable Savings from General Revenue Dedicated Accounts	Probable (Cost) from Economic Stabilization Fund 599	Probable Revenue (Loss) from Economic Stabilization Fund 599
2021	$6,526,294,079	$74,302,163	($100,400,000)	($75,000)
2022	$0	$0	$0	($1,322,000)
2023	$0	$0	$0	($1,429,000)
2024	$0	$0	$0	($1,449,000)
2025	$0	$0	$0	($1,470,000)
2026	$0	$0	$0	($1,321,000)

Fiscal Analysis

The bill would make supplemental appropriations, reductions in appropriations, and give direction and adjustment authority regarding appropriations. 

The bill would make net appropriations reductions of $6,526,294,079 from General Revenue Fund Account 0001 . The bill would make net appropriations reductions of $74,302,163 from General Revenue-Dedicated accounts.

The bill would increase appropriations from the Economic Stabilization Fund by $100,400,000.

The bill would take effect immediately as provided for a general appropriations act under Section 39, Article III, Texas Constitution. Sections of the bill that authorize appropriations or reauthorization of existing appropriations from the Economic Stabilization Fund take effect only if this bill receives a vote of two-thirds of the members present in each house of the Legislature, as provided by Section 49-g(m), Article III, Texas Constitution.

Methodology

A portion of the appropriation reduction at the Texas Education Agency related to the Foundation School Program was accounted for in the Comptroller's January 2021 Biennial Revenue Estimate (BRE).  Of the total FSP appropriation reduction, $1,169,480,000 was not accounted for in the BRE and represents an increase of revenue available for certification, relative to the BRE estimate.  The remaining increase in revenue available for certification relative to the BRE comes from appropriation reductions not accounted for in the BRE.

The Comptroller indicates there would be a loss of interest and investment income from the Economic Stabilization Fund resulting from the amounts appropriated from the ESF not being available for investment purposes.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JMc, KK, SD