LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION

May 13, 2025

TO:	Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB2894 by Hickland (Relating to the provision of state aid to certain local governments disproportionately affected by the granting of ad valorem tax relief to disabled veterans.), As Engrossed

No fiscal implication to the State is anticipated.

The bill would amend Section 140, Local Government Code, to expand the definition of "local government", within the context of disabled veteran assistance payments, to include any municipality or county regardless of proximity to a U.S. military installation. Current law includes only municipalities adjacent to a U.S. military installation, or counties in which a U.S. military installation is wholly or partially located. These newly included local governments would be eligible for assistance payments if the amount of lost ad valorem tax revenue is greater than or equal to 10 percent of the local governments' general fund revenue for that fiscal year.

Although the bill expands the number of eligible local governments, changing the distribution of funds, the amount of funding available for distribution is a sum-certain appropriation. Therefore, this bill alone would have no fiscal impact to the state.

Local Government Impact

The fiscal implications of the bill cannot be determined at this time.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JMc, KK, LCO, CSmi