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The Texas Department of Information Resources (DIR) Budget Process has been laid out in two separate sections addressing the agency’s Budget Hearing and Legislative Appropriations Request. The overview of both the budget hearing report and the LAR offers similar information regarding the agency’s Exceptional Items Request. Conversely, the budget hearing did not cover information regarding any riders seen in the LAR.

 

Texas Department of Information Resources Budget Hearing Report

The Legislative Budget Board budget hearing of DIR was held on September 27, 2024. The following provides an overview, and a video archive of the hearing can be found here.

 

This report is intended to give you an overview and highlight the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer.

 

Opening Remarks

 

Item 1: Texas Department of Information Resources Budget Hearing

Amanda Crawford, Executive Director and CIO, Texas Department of Information Resources and State of Texas

  • Thanks staff from Office of the Governor, Legislature, and Legislative Budget Board for working with them on the LAR
  • DIR is a multi-pronged agency; overseeing cybersecurity, technology procurement in contracting, telecommunications and more
  • Mission is to serve Texas government by leading state’s technology strategy, protecting state technology infrastructure, and offering innovative and cost-effective solutions for all levels of Texas government
  • DIR is unique as they serve and support facilities that serve Texans; includes state agencies, county and municipal organizations, public colleges and universities and K-12 schools
  • DIR operates on an outsource “best of breed” model; often referred to by other states as the “Texas model”
  • Other states look to Texas DIR; Texas.gov and phone and network services generate over $6 B in sales annually; $1.4 B is with HUB vendors; do this with 270 state FTEs and between 600 – 1,200 Vendor staff
  • Happy to report customer satisfaction is high; in shared technology services program, achieved average customer satisfaction rate of over 99% in FY 24 and 100% in 9 of 12 months
  • DIR number 1 priority is cybersecurity; national leader in responding to cyber-attacks; we provide training and outreach to state and local governments in Texas; but must be able to continue to respond and defend Texas industry; we must be right 100% of the time
  • Thanks Governor and staff for making cybersecurity a priority; only GR DIR receives is solely to fund cybersecurity services; all other functions are funded through statutorily authorized administrative fees
  • Currently under review by Sunset Advisory Commission; DIR requesting 5 EIR for upcoming FY 26-27
  • EIR one; increase in number of FTEs at DIR; expect cooperative contract sales to exceed $3.4 M for FY 2024
  • Despite doing the work well, supporting the strong technology posture and defending state from cyber-attacks at current resource level is not feasible; with a small team it is not sustainable and need reinforcements; DIR is requesting to increase FTE cap by 49 FTES bringing it 316
  • Of the 49 FTEs, 22 are to fully implement sunset implications; this request will be authority only and salaries will be covered by administrative fees; only $500,000 per year covering cyber security only FTEs
  • ERI two; round three of the Regional Security Operation Centers (RSOC); requesting 4 additional RSOCs with two in 2026 and two in 2027;
  • Stair stepping RSOCs over the years will provide cybersecurity services to underfunded areas in the state; RSOC program assists local government and school districts about cybersecurity; will also advance the current two RSOCs as UT
  • EIR three; additional cybersecurity services; includes additional network detection and response and endpoint detection and response funds for state agencies; NDR looks at all end point detections that provides visibility; 198,000 EDR on which EDR has currently deployed has blocked 146,000 threats to date
  • External Attack Surface Management tool (EASM) focuses on a company’s most vulnerable and external facing assets; those not protected by internal security measures; also, multi-authentication hard-key tokens for eligible entities (MFA) tokens are more difficult to duplicate or spoof than software tokens
  • EIR four; authority only to develop second iteration of e-procurement solution for DIR; phase one implements acquisition planning and management features which build requirements, provide audit trail, generate contract documents, etc.
  • Second iteration will implement contract management module to house contract documents and allow for staff to monitor to assist with tracking contract deliverables, amendments, and correspondents; allow DIR to develop end to end procurement and contract lifecycle platform
  • Appreciate Legislature’s support for funding phase one of the system
  • EIR five; request for authority only to implement an agency- wide IT service management tool; to improve service delivery to customers; this request would give budget authority to have this management tooling in other areas of our agency

Q&A

  • Smith – This being the 3rd iteration of the RSOC program; There is funding in the EIR for this and the further expansion on the two in Austin and Rio Grande Vally; can you expand on expansion of those and increased demand? Reason for that additional funding?
    • Crawford – RSOCs overall are going very well; both schools are in the process of building out the infrastructure; UTRGV is a little bit further along compared to UT as they are starting with a simpler solution;
    • Crawford – UTRGV will have a ribbon cutting for their RSOC, but before that they have already signed their first contract with the local Harlingen Waterworks and recruiting new customers; thrilled since this is an underserved area
    • Crawford – Part of the challenge to serve these areas is the way the funding worked before as the funding was split before the two entities; this would bring them more in line with what it would take to start an RSOC and maintain the system
    • Crawford – With the area UTRGV is looking to serve would be the 30 largest states in the country so we need to make sure they have the resources especially because of the border proximity
  • Smith – Location for the RSOC is based on economic regions of Texas, right? Where will the four new ones be located?
    • Crawford – We know UTEP, Texas Tech, Sam Houston State, A&M Corpus Christi, and UT Tyler have all expressed an interest in being in next round of RSOCs; locations are in the discretion of the legislature
    • Crawford – There is a particular excitement and interest in Texas Tech; have received countless letters from entities there because this is a need; entities are excited to partner with Texas Tech; we saw a lot of things happening in the news with the water districts being hacked by the Russian attackers that occurred in the areas around Texas Tech; definitely a need there

 

Public Testimony

Tara Tough, Policy Coordinator, Texas 2036

  • Highlights the essential role of the DIR as Texas’ primary technology agency
  • Due to Texas growing population and economy relies on infrastructure which leads to the increased demands on DIR; as the needs increase and threats of cyberattacks rise that state must supply DIR with necessary tools to carry out its services
  • From The Sunset Advisory Commission there are recommendations to enhance its support for IT procurement for state agencies; to do this it will require additional staffing and modernization of current systems
  • Policy 2036 Supports EIR 1 to increase agencies full time EIR cap; also supports 4 which advances the functionality of E procurement systems and replacing legacy systems
  • Texas 20236 supports EIR 2 that adds additional funding to RSOC programs and the creation of 4 additional RSOC programs; also supports EIR 3 and 5

Adjournment

 

Texas Department of Information Resources Legislative Appropriations Request

Texas Department of Information Resources

Legislative Appropriations Request FY 2026-2027

This report covers the submitted LAR document and attempts to summarize the priorities and changes in the aforementioned Legislative Appropriations Request.

 

Background Spotlight

Texas Department of Information Resources (DIR) reviewed the agency’s need to create an appropriations request for the FY 2026-2027 biennium.

DIR is requesting several exceptional items (LAR includes five highlights of the exceptional items) totaling $64 M over the 2026-27 biennium.

DIR is requesting authority to increase the agency’s full-time equivalent (FTE) cap by 49 FTEs. This request includes additional staff across multiple divisions, but approximately 70% of the requested FTEs are in the following three divisions: Chief Procurement Officer, Chief Operations Office, and Chief Information Security Office.

DIR is requesting an expansion of the Regional Security Operations Center (RSOC) program. In addition, the EIR includes a funding request to establish four additional RSOCs.

DIR is requesting for the continued and expanded delivery of critical services that protect state agencies from cybersecurity attacks.

DIR is also requesting to enhance the functionality of the e-procurement system approved during the last legislative session.

DIR is seeking budget authority to implement additional information technology service management system capabilities across the agency to replace existing legacy systems.

Rider Revisions and Additions Request

  • Rider 2: Capital Budget: None of the funds appropriated above may be expended for capital budget items except as listed below. The amounts shown below shall be expended only for the purposes shown and are not available for expenditure for other purposes.
    • (a) Acquisition of Information Resources Technologies: (1) Daily Operations: 275,000 for 2026; 275,000 for 2027; (2) Personal Computer Purchases: 432,501 for 2026; 432,501 for 2027
    • Total Acquisition of Information Resources: Technologies: 707,501 for 2026; 707,501 for 2027
    • (b) Data Center/Shared Technology Services: (1) Data Center Consolidation: 5,664,851 for 2026; 5,731,121 for 2027; (2) eProcurement Solution: 0 for 2026; 0 for 2027; (3) Vendor Sales Reporting Portal: 0 for 2026; 0 for 2027
    • Total, Data Center/Shared Technology Services: 5,664,851 for 2026; 5,731,121 for 2027
    • Total, Capital Budget: 6,372,352 for 2026; 6,438,622 for 2027
    • Method of Financing (Capital Budget): Other Funds: DIR Clearing Fund Account – AR: $1,113,594 for 2026; $1,122,473 for 2027; Telecommunications Revolving Account – AR: 3,00,416 for 2026; 3,028,033 for 2027; Statewide Technology Account – IAC: 1,622,688 for 2026; 1,642,494 for 2027; Statewide Network Applications Account – AR: 635,654 for 2026; 645,622 for 2027
    • Subtotal, Other Funds: 6,372,352 for 2026; 6,438,622 for 2027
    • Total, Method of Financing: 6,372,352 for 2026; 6,438,622 for 2027
  • Rider 3: DIR Clearing Fund Account: The Comptroller shall establish in the state treasury the Department of Information Resources Clearing Fund Account for the administration of cost recovery activities pursuant to authority granted under Chapters 771, 791, and 2157, Government Code. The account shall be used:
    • As a depository for funds received as payments from state agencies, units of local government, and/or vendors for goods and services provided;
    • As a source of funds for the department to purchase, lease, or acquire in any other manner services, supplies, software products, and equipment necessary for carrying out the department’s duties relating to services provided to state agencies and units of local government for which the department receives payment from state agencies and local governmental units; and
    • To pay salaries, wages, and other costs directly attributable to the services provided to state agencies and units of local government for which the department receives payment from those agencies and governmental units. However, the maximum amount for all administrative costs to be applied to state agency receipts and local government receipts shall not exceed 2.0 percent per receipt.
    • Included in the amounts appropriated above in Strategies A.1.1, Statewide Planning and Rules; A.1.2, Innovation and Modernization; B.1.1, Contract Administration of IT Commodities and Services; C.1.1, Security Policy and Awareness; C.1.2, Security Services; D.1.1, Central Administration; D.1.2, Information Resources; and D.1.3, Other Support Services, are all balances not previously encumbered as of August 31, 2025, (estimated to be $2,709,390) and revenues accruing during the 2026-27 biennium estimated to be $23,214,469 in fiscal year 2026 an $26,713,708 in fiscal year 2027 in revenue collected on or after September 1, 2025, appropriated from the sale of information technology commodity items out of Appropriated Receipts to the Department of Information Resources Clearing Fund Account.
    • Any unexpended and unobligated balances as of August 31, 2026, out of appropriations made herein are appropriated for the same purposes to the Department of Information Resources for the fiscal year beginning September 1, 2026. For each fiscal year, in the event that unexpended and unobligated balances and/or revenues are less than the amounts estimated by this rider, fund balances in the DIR Clearing Fund Account, authorized by Rider 11, Fund Balance Limitations, may be expended to address a shortfall, subject to the limitations on expenditures included in this rider.
    • The Department of Information Resources may not expend funds appropriated to the Department that exceed the total in Appropriated Receipts identified above for each fiscal year of the 2026-27 biennium without prior written approval from the Legislative Budget Board. The Department requesting the approval of the Legislative Budget Board shall submit in a timely manner the request along with adequate information for evaluating the request. Any additional information requested by the Legislative Budget Board must be submitted promptly and in a manner prescribed by the Legislative Budget Board. The request shall be considered to be approved unless the Legislative Budget Board issues a written disapproval within 30 business days after the date the Legislative Budget Board staff concludes its review of the request and forwards the review to the Chair of the House Appropriations Committee, Chair of the Senate Finance Committee, Speaker of the House, and Lieutenant Governor. Any requests for additional information made by the Legislative Budget Board interrupt the counting of the 30 business days.
  • Rider 5: Cash Flow Contingency: Contingent upon receipt of reimbursements from state agencies, other governmental entities, and vendors for direct services provided and procurements of goods or services, the Department of Information Resources may temporarily utilize additional General Revenue funds in an amount not to exceed the greater of 20 percent of projected revenue from telecommunications services provided under Government Code, Chapter 2170, and revenue from the operation and management of Statewide Technology Centers under Government Code, Chapter 2054, Subchapter L or $4.0 million. These funds shall be utilized only for the purpose of temporary cash flow needs. The transfer and reimbursement of funds shall be made under procedures established by the Comptroller of Public Accounts to ensure all borrowed funds are reimbursed to the Treasury on or before August 31, 2027.
  • Rider 6: Texas.gov Project and the Statewide Network Applications Account: The Comptroller shall establish in the state treasury the Department of Information Resources Statewide Network Applications Account for the administration of cost recovery activities pursuant to authority granted under Chapter 2054, Government Code.
    • Included in the amounts appropriated above in Strategies B.3.1,Texas.gov; D.1.1, Central Administration; D.1.2, Information Resources; and D.1.3, Other Support Services, are all balances not previously encumbered as of August 31, 2025, (estimated to be $2,811,031) and revenues accruing during the 2026-27 biennium estimated to be  $54,050,037 in fiscal year 2026 and $62,230,479 in fiscal year 2027 in revenue collected on or after September 1, 2025, appropriated from the operation and management of the Texas.gov State Electronic Internet Portal Project as provided by Government Code, Chapter 2054, Subchapter I, out of Appropriated Receipts and Interagency Contracts to the Department of Information Resources Statewide Network Applications Account.
    • Any unexpended and unobligated balances remaining as of August 31, 2026, in the appropriation made herein are appropriated for the fiscal year beginning September 1, 2026, for the same purposes. For each fiscal year, in the event that unexpended and unobligated balances and/or revenues are less than the amounts estimated by this rider, fund balances in the Statewide Network Applications Account, authorized by Rider 11, Fund Balance Limitations, may be expended to address a shortfall, subject to the limitations on expenditures included in this rider.
    • Included in amounts appropriated above is $5,249,793 in fiscal year 2026 and $4,407,638 in fiscal year 2027 in Appropriated Receipts and Interagency Contracts to the Statewide Network Applications Account for the purpose of providing operating and indirect administrative costs, excluding payments to services providers for Texas.gov service providers. The Department must notify the Legislative Budget Board to expend funds in excess of amounts identified in this rider for operating and indirect administrative costs. The Department may not expend funds in excess of 110% of the amounts identified in this rider for operating and indirect administrative costs without prior written approval from the Legislative Budget Board. The Department requesting the approval of the Legislative Budget Board shall submit in a timely manner the request along with adequate information for evaluating the request. Any additional information requested by the Legislative Budget Board must be submitted promptly and in a manner prescribed by the Legislative Budget Board. The request shall be considered to be approved unless the Legislative Budget Board issues a written disapproval within 30 business days after the date the Legislative Budget Board staff concludes its review of the request and forwards the review to the Chair of the House Appropriations Committee, Chair of the Senate Finance Committee, Speaker of the House, and Lieutenant Governor. Any requests for additional information made by the Legislative Budget Board interrupt the counting of the 30 business days.
    • Any funds received by the Department from other agencies or governmental entities for the purpose of adding or enhancing applications to or functionality of the Texas.gov project are appropriated to the Department and are exempted from the requirements of this rider for prior written approval from the Legislative Budget Board to expend such funds. The Department shall provide notification to the Legislative Budget Board as part of the quarterly Texas.gov financial reporting process and shall include the total amount estimated to be received and describe the application or functionality to be added or enhanced.
    • The Department may request additional appropriations for Texas.gov, up to the amount of general revenue collected from the Inspection Program Replacement Fee established in Transportation Code Section 548.510(d) & (e). The Department requesting the approval of the Legislative Budget Board shall submit in a timely manner the request along with adequate information for evaluating the request. Any additional information requested by the Legislative Budget Board must be submitted promptly and in a manner prescribed by the Legislative Budget Board. The request shall be considered to be approved unless the Legislative Budget Board issues a written disapproval within 30 business days after the date the Legislative Budget Board staff concludes its review of the request and forwards the review to the Chair of the House Appropriations Committee, Chair of the Senate Finance Committee, Speaker of the House, and Lieutenant Governor. Any requests for additional information made by the Legislative Budget Board interrupt the counting of the 30 business days.
    • The Department of Information Resources shall provide the Legislative Budget Board quarterly financial reports and expenditures on the Texas.gov project within 60 days of the close of each quarter.
    • Updated year references. Ability to expend up to 110% of amounts related to indirect admin costs, this mirrors language included in Rider 8 (Telecommunications Revolving Account) and Rider 9 (Statewide Technology Account). HB 3297 changed that GR collected through the new fee “Inspection Program Replacement Fee” goes directly to the Treasury instead of through the Statewide Network Applications Account first and then to the Treasury. This revenue has been used in the past through the RTE process allowed through this rider. DIR is proposing this revision to continue the availability of the RTE process for this funding source subject to legislative approval.
  • Rider 8: Telecommunications Revolving Account: Included in amounts appropriated above in Strategies B.4.1, Communications Technology Services; C.1.2, Security Services; D.1.1, Central Administration; D.1.2, Information Resources; and D.1.3, Other Support Services, are all balances not previously encumbered as of August 31, 2025, (estimated to be $2,469,432) and revenues accruing during the 2026-27 biennium estimated to be $127,389,699 in fiscal year 2026 and $132,179,766 in fiscal year 2027 in revenue collected on or after September 1, 2025, appropriated from telecommunications services as provided by Government Code, Chapter 2170 out of Appropriated Receipts and Interagency Contracts to the Telecommunications Revolving Account.
    • Any unexpended and unobligated balances remaining as of August 31, 2026, in the appropriation made herein are appropriated for the fiscal year beginning September 1, 2026, for the same purposes. For each fiscal year, in the event that unexpended and unobligated balances and/or revenues are less than the amounts estimated by this rider, fund balances in the Telecommunications Revolving Account, authorized by Rider 11, Fund Balance Limitations, may be expended to address a shortfall, subject to the limitations on expenditures included in this rider.
    • Included in amounts appropriated above is $15,415,491 in fiscal year 2026 and $14,706,933 in fiscal year 2027 in Appropriated Receipts and Interagency Contracts to the Telecommunications Revolving Account for the purpose of providing operating and administrative costs, excluding payments to service providers for communications technology services for voice, data, wireless, and internet services for which the Department bills customer state agencies and government entities. The Department must notify the Legislative Budget Board to expend funds in excess of amounts identified in this rider for operating and indirect administrative costs. The Department may not expend funds in excess of 110% of the amounts identified in this rider for operating and indirect administrative costs without prior written approval from the Legislative Budget Board. The Department requesting the approval of the Legislative Budget Board shall submit in a timely manner the request along with adequate information for evaluating the request. Any additional information requested by the Legislative Budget Board must be submitted promptly and in a manner prescribed by the Legislative Budget Board. The request shall be considered to be approved unless the Legislative Budget Board issues a written disapproval within 30 business days after the date the Legislative Budget Board staff concludes its review of the request and forwards the review to the Chair of the House Appropriations Committee, Chair of the Senate Finance Committee, Speaker of the House, and Lieutenant Governor. Any requests for additional information made by the Legislative Budget Board interrupt the counting of the 30 business days.
    • Annually, the Department shall report to the Legislative Budget Board, in a format prescribed by the Legislative Budget Board, actual spending by customer agencies and entities on telecommunications services.
  • Rider 9: Statewide Technology Account: In accordance with Government Code, §403.011, the Comptroller of Public Accounts shall establish within the state treasury an operational account, called the Statewide Technology Account for all transactions relating to the operation and management of statewide technology centers.
    • Included in amounts appropriated above in Strategies B.2.1, Shared Technology Services; D.1.1, Central Administration; D.1.2, Information Resources; and D.1.3, Other Support Services, are all balances not previously encumbered as of August 31, 2025 (estimated to be $2,742,962), and revenues accruing during the 2026-27 biennium estimated to be $615,026,943 in fiscal year 2026 and $620,007,653 in fiscal year 2027 in revenue collected on or after September 1, 2025 appropriated from the operation and management of Statewide Technology Centers as provided by Government Code, Chapter 2054, Subchapter L out of Interagency Contracts and Appropriated Receipts to the Statewide Technology Account.
    • Annually, the Department of Information Resources shall report to the Legislative Budget Board, in a format prescribed by the Legislative Budget Board, actual spending by customer agencies and entities on shared technology services.
    • Any unexpended and unobligated balances remaining as of August 31, 2026, in the appropriation made herein are appropriated for the fiscal year beginning September 1, 2026, for the same purposes. For each fiscal year, in the event that unexpended and unobligated balances and/or revenues are less than the amounts estimated by this rider, fund balances in the Statewide Technology Account, authorized by Rider 11, Fund Balance Limitations, may be expended to address a shortfall, subject to the limitations on expenditures included in this rider.
    • Included in amounts appropriated above is $13,372,969 in fiscal year 2026 and $13,915,831 in fiscal year 2027 in Appropriated Receipts and Interagency Contracts to the Statewide Technology Account for the purpose of providing operating and indirect administrative costs, excluding payments to services providers for data center services/shared technology services for which the Department bills customer state agencies and government entities. The Department must notify the Legislative Budget Board to expend funds in excess of amounts identified in this rider for operating and indirect administrative costs. The Department may not expend funds in excess of 110% of the amounts identified in this rider for operating and indirect administrative costs without prior written approval from the Legislative Budget Board. The Department requesting the approval of the Legislative Budget Board shall submit in a timely manner the request along with adequate information for evaluating the request. Any additional information requested by the Legislative Budget Board must be submitted promptly and in a manner prescribed by the Legislative Budget Board. The request shall be considered to be approved unless the Legislative Budget Board issues a written disapproval within 30 business days after the date the Legislative Budget Board staff concludes its review of the request and forwards the review to the Chair of the House Appropriations Committee, Chair of the Senate Finance Committee, Speaker of the House, and Lieutenant Governor. Any requests for additional information made by the Legislative Budget Board interrupt the counting of the 30 business days.
    • The Department of Information Resources shall report all administrative costs collected and the administrative cost percentage charged to each state agency and other users of statewide technology centers as defined in Government Code, §2054.380 to the Governor and Legislative Budget Board annually as directed in Government Code 2054.0346. The Legislative Budget Board and Governor’s Office shall consider the incremental change to administrative percentages submitted. Without the written approval of the Governor and the Legislative Budget Board, the Department of Information Resources may not expend funds appropriated to the Department if those appropriated funds are associated with an increase to the administrative cost percentage charged to users of the statewide technology centers and deposited to the Statewide Technology Account. The request to increase the administrative cost percentage shall be considered to be approved by the Legislative Budget Board unless the Legislative Budget Board issues a written disapproval within 30 business days after the date the Legislative Budget Board staff concludes its review of the request and forwards the review to the Chair of the House Appropriations Committee, Chair of the Senate Finance Committee, Speaker of the House, and Lieutenant Governor. Any requests for additional information made by the Legislative Budget Board interrupt the counting of the 30 business days. In addition, by September 15 of each even-numbered year the Department shall submit a report to the Legislative Budget Board detailing expended, budgeted and projected costs for data center services by participating agency. The report shall be in a format prescribed by the Legislative Budget Board.
  • Rider 12: Security Services to State Agencies and Institutions of Higher Education: Included in amounts appropriated above in Strategy C.1.2, Security Services, is $28,034,157 in fiscal year 2026 and $28,034,157 in fiscal year 2027 in General Revenue for the purpose of providing cybersecurity services to state agencies and institutions of higher education. Any unexpended and unobligated balances of these funds remaining as of August 31, 2026, are appropriated to the Department of Information Resources for the fiscal year beginning September 1, 2026, for the same purposes.
    • The Department may utilize up to $3 million in fiscal year 2026 and $3 million in fiscal year 2027 in General Revenue for the purposes of providing cybersecurity services to state agencies and institutions of higher education in addition to amounts appropriated above upon notification to the Legislative Budget Board. The Department may increase appropriations upon notification and any funds expended under this provision shall be reported to the Legislative Budget Board. Any additional information requested by the Legislative Budget Board must be submitted promptly and in a manner prescribed by the Legislative Budget Board.
    • Updated year and estimated amounts references. DIR is also requesting authority to utilize up to $3M in GR in each year of the biennium for additional cybersecurity services upon notification to the LBB.
  • Rider 14: Language has been struck from consideration.
    • One-time funds.
  • 9.04: Texas.gov Project: Occupational Licenses: Each licensing entity not otherwise authorized to increase occupational license fees elsewhere in this Act may, as provided by Government Code, Section 2054.252(g), increase the occupational license or permit fees imposed on the licensing entity’s licensees by an amount sufficient to cover the cost of the subscription fee charged by the Texas.gov Project to the licensing entity pursuant to Government Code, Chapter 2054. Each licensing entity provided authority to impose a fee by Government Code, Section 2054.252(g), and not otherwise authorized to increase occupational license fees elsewhere in this Act is appropriated the additional occupational license or permit fees in excess of the Comptroller’s biennial revenue estimate for 2026-27 for the sole purpose of payment to the Texas.gov contractor subscription fees for implementing and maintaining electronic services for the licensing entities. Each agency, upon completion of necessary actions to access or increase fees, shall furnish copies of board meeting minutes, an annual schedule of the number of license issuances or renewals and associated annual fee total, and any other supporting documentation to the Comptroller. If the Comptroller finds the information sufficient to support the projection of increased revenues, a notification letter will be issued, and the contingent appropriation made available for the intended purposes.
  • 9.05: Texas.gov Project: Recovery Fees: Any cost recovery fees, excluding subscription fees as authorized under Government Code, Chapter 2054, approved by the Department of Information Resources in relation to the Texas.gov Project as authorized under Government Code, Chapter 2054, are appropriated to that agency from the fund to which the fee was deposited for the purpose of paying the costs associated with implementing and maintaining electronic services. Any unexpended balances remaining at the end of the fiscal biennium ending August 31, 2025, are reappropriated for the same purposes for the fiscal biennium beginning September 1, 2025.
  • 9.06: Prioritization of Cybersecurity and Legacy System projects: Out of monies appropriated elsewhere in this Act and in accordance with Government Code, Chapter 2054, the Department of Information Resources (DIR) shall submit a prioritization of state agencies’ cybersecurity projects and projects to modernize or replace legacy systems, as defined in the Government Code, Section 2054.571, to be considered for funding to the Legislative Budget Board by October 1, 2026. Agencies shall coordinate and cooperate with DIR for implementation of this provision.
  • 14.03 (h)(4): Transfers- Capital Budget: An agency may transfer appropriations into “data center consolidation,” “data center services,” or “shared technology services,” as defined by Subsection (1)(2) An agency may request to transfer from “data center consolidation,” “data center services,” or “shared technology services,” into another capital budget appropriation to procure Information Technology Staff Augmentation Contract services provided by the Department of Information Resources. The request shall be considered to be approved unless the Legislative Budget Board issues a written disapproval within 30 business days after the date the Legislative Budget Board staff concludes its review of the request and forwards the review to the Chair of the House Appropriations Committee, Chair of the Senate Finance Committee, Speaker of the House, and Lieutenant Governor. Any requests for additional information made by the Legislative Budget Board interrupt the counting of the 30 business day. An agency must report, in a manner prescribed by the Legislative Budget Board, all transfers out of “data center consolidation,” “data center services,” or “shared technology services,” to the Legislative Budget Board on a quarterly basis. An agency may transfer appropriations from “data center consolidation” or “data center services,” or “shared technology services” as provided by Government Code, Section 2054.386 after obtaining the written approval of the Legislative Budget Board.
    • Rider change is based on Sunset Commission staff recommendation report Issue 3.1.
  • 18.67: Language has been struck from consideration.
    • Delete, contingency rider.

Appropriations Spotlight

Comparison of FY 24-25 request to FY 26-27 request

Exceptional Item Request written as EIR

  • General Revenue – Decrease from $100,530,553 to $56,068,314
  • Federal Funds – Decrease from $280,423 to $0
  • Other Funds – Increase from $1,497,275,484 to $1,671,545,569
  • ALL FUNDS – Increase from $1,598,086,460 to $1,727,613,883
  • EIR – $64,478,456
  • EIR FUNDS TOTAL – $64,478,456