This report covers the submitted LAR document and attempts to summarize the priorities and changes in the aforementioned Legislative Appropriations Request.
Background Spotlight
Mandated 5% reduction is approximately $32.3 million, and will result in the reduction of planned information technology projects, delayed deployments of the CAPPS system, freeze on salary actions, and a hold on filling vacant positions. The Comptroller of Public Accounts (TCPA) expects this reduction to severely impact service levels across the agency, leading to decreased tax revenue and performance.
In the Audit area: without adequate funding and personnel, TCPA predicts that upwards of $106.6 million in potential revenue could be lost over the biennium due to the inability to fill 32 audit positions. An additional 100 experienced audit positions could also be cut as a result.
In the Enforcement Area: loss of funding would translate into cuts of approximately 21 collector positions, resulting in approximately $144.8 million in lost tax revenue over the biennium.
In the Revenue Administration area: lack of full staff will impede processing tax payments, increasing time per case by approximately 2 days, increasing credit interest payed by the state. Any processing delays will impact economic outcomes for Texas.
In Tax Policy: decreased staffing and loss of knowledge will severely impact the expertise and efficiency of the tax specialists.
In the Tax Hearings area: case reviews would face delays without sufficient staffing and funding. Increased numbers of hearings and increased processing time results in less tax revenue collected by the State, as well as delay legally due tax refunds to taxpayers.
In Fiscal Management: lack of ability to fill positions could compromise the timeliness and accuracy of the Comprehensive Annual Financial Report and the Annual Cash Report and impact support of the state’s financial systems.
In the Property Tax area: reduced staff will lead to impediments in the conduction of the Property Value Study (PVS), which could compromise funding for public education and drive up costs. The number of properties included in the PVS would be reduced from 115,000 to approximately 100,000. Fewer samples in the study could lead to less accurate value findings resulting from more variability, which could lead to increased costs for funding public education.
In the Treasury area: reduced staff and/or resources affects growth and productivity, would lead to late payments on obligations, fees, delays in project completion, and general accounting errors.
In Statewide Procurement: reduced staff levels will result in a decrease in new contracts made and an inability to maintain existing contracts, which will reduce fee and rebate revenue to the State.
In Information Technology: reduced funding will result in the inability of IT to fill 17 positions, which will have a severe impact on agency operations, including lack of timely maintenance and system failure issues. Planned and necessary updates to systems and technology will also be delayed.
Appropriations Spotlight
All comparisons are FY 20-21 levels compared to FY 22-23 request
- General Revenue: Constant at $613,668,654
- Other Funds: Decrease from $14,634,865 to $8,507,400
- ALL FUNDS: Decrease from $628,303,519 to $622,176,054
- Exceptional Items Request for Budget Restoration and Increase – $1.2 billion
- TOTAL EIR FUNDS – $1.2 billion