The committee met to adopt rules and to hear a brief presentation from the Legislative Budget Board (LBB).
Sen. Jane Nelson opening remarks
- Introduced SB 2, the budget bill, yesterday
- SB 2 is a foundation of priorities but many other ideas and proposals will be considered
- Urged other senators to voice their own ideas
- Next week will begin budget hearings Monday beginning with Art. 4
- Generally, will be meeting Monday through Thursday of each week
- If business isn’t finished by Thursday the group will meet Fridays as well
Ursula Parks, Director, LBB
- All funds increases by 1.5% , about $3 billion
- General revenue increases by $6.3 billion
- All of these figures are relative to the 14-15 biennium base, not including transfers of unexpended balances or increases made
- Net biennial increase from the base for the last budget is $193 million, very modest historically; generally adjustments do not require legislative action
- Anticipating the need for additional support for Medicaid this year of $171 million, already built into the base; this does require legislative action
- SB 2 leaves
- $10.3 billion under the pay as you go limit before the BRE is reached
- $5.4 billion of general revenue before the constitutional spending limit is reached
- Foundation school program is supported by $42.4 billion in all funds
- $33.6 billion in GR
- $4 billion is built in for tax relief
- $3 billion in property tax relief and $1 billion in franchise tax shift
- $200 million increase for an M&O rate conversion
- Both are contingent upon additional legislation being passed
- Nelson noted her intention regarding tax relief is that the committee will hear all tax relief bills in a designated week; $4 billion has been earmarked as the goal
- For Medicaid, $60.1 billion in all funds
- Just under$25 billion in GR and GRD
- $1.3 billion for caseload growth
- Maintaining fiscal 15 average costs
- A higher proportion of the program is being funded by GR in SB 2 because of a slightly less favorable FMAP
- Women’s health is provided a $50 million GR increase to comply with some sunset recommendations for new programs
- Increase of $14.5 million to reduce wait lists for mental health services
- There is a requirement for a statewide mental health coordination program as well
- Transportation is supported by just under $25 billion in all funds
- Includes $1.2 billion from allocating 100% of Fund 6 to TxDOT; there is no Fund 6 appropriation anywhere in the budget aside from TxDOT
- $2.6 billion built in associated with Prop 1
- $1.2 billion to TxDOT contingent on a bill sending motor vehicle sales tax to TxDOT
- Sen. Chuy Hinojosa asked about Fund 6 diversions
- Will provide the committee with a list of discontinued diversions; the greatest was to DPS
- Hinojosa asked if there were any educational funds from Fund 6
- No
- Nelson noted the diversions have been replaced with GR
- For border security there is over $800 million in all funds
- About a $350 million increase
- Most going to DPS
- Higher ed is provided just under $19.8 billion in all funds which includes a 1.5% increase for enrollment growth
- TJJD is provided just under $640 million in all funds
- This is all in a rider; designed to give the lege maximum flexibility in addressing the TJJD function
- Adult criminal justice is supported by $6.3billion in all funds; about the same as last biennium
- Debt service totals $3.9 billion in all funds
- $330 million increase
- Fully funds all state obligations
- Sen. Paul Bettencourt asked what property tax value growth projections are estimated at
- Projections are in Rider 3; increase of around 5% yearly is estimated and is fairly conservative
- Bettencourt asked about the FMAP
- The federal percentage for 16 is 57.2% and for 16 it is 57.0%
- Sen. Lois Kolkhorst asked about Fund 6 diversions; are raises to DPS officers now a cost to the state where they weren’t in the past because they came from Fund 6
- Correct
- The GEER report will be coming out soon and available on the website will be a programmatic breakdown of the budget bills and the last passed budget