Honorable Dan Patrick, Lieutenant Governor, Senate
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SJR75 by Perry (Proposing a constitutional amendment creating the Texas water fund to assist in financing water projects in this state.), As Passed 2nd House
Estimated Two-year Net Impact to General Revenue Related Funds for SJR75, As Passed 2nd House : a negative impact of ($3,000,204,406) through the biennium ending August 31, 2025.
The resolution would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2024
($3,000,204,406)
2025
$0
2026
$0
2027
$0
2028
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Revenue Gain/(Loss) from Texas Water Fund
2024
($3,000,204,406)
$3,000,000,000
2025
$0
$0
2026
$0
$0
2027
$0
$0
2028
$0
$0
Fiscal Analysis
The joint resolution would propose a constitutional amendment to Article III of the Texas Constitution to create the Texas Water Fund (TWF). The TWF would be held in the state treasury outside the General Revenue Fund and would be administered by the Texas Water Development Board (TWDB) to assist in financing water projects through the transfer of money to other accounts and funds administered by the TWDB. On January 15, 2024, the Comptroller of Public Accounts would be required to transfer $3,000,000,000 from the General Revenue Fund that exists on that date to the TWF.
The proposed amendment would be submitted to voters at an election to be held November 7, 2023.
Methodology
Costs resulting from the joint resolution would occur in fiscal year 2024. The cost to the General Revenue Fund includes the transfer of $3,000,000,000 to the TWF on January 15, 2024, and the cost to the state for publication of the resolution, which is $204,406.
This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 580 Water Development Board