Subscribe to receive our Floor Reports covering all the action on the Texas House and Senate floor!
Estimated Two-year Net Impact to General Revenue Related Funds for SB 500, Committee Report 1st House, Substituted: a negative impact of ($1,512,280,572) through the biennium ending August 31, 2021.
SB 500 makes a supplemental appropriation to fund unfunded state obligations from the prior biennium.
The purpose of a supplemental appropriation is to pay for unfunded obligations from the fiscal biennium which is about to end. Some supplemental appropriations are understandable, such as those which cover unforeseen costs such as natural disasters. The majority of the appropriation covers underfunded entitlement spending which can be difficult to project and accurately appropriate for two years in advance.
On the other hand, supplemental appropriations can undermine the constitutional mandate to certify a balanced budget. Because supplemental appropriations do not count against the spending cap they diminish transparency and accountability within state budgeting, especially with respect to certifying a balanced budget.
We remain neutral on this supplemental but urge the legislature to make a concerted effort this session to budget in a way that makes next session's supplemental appropriation as small as possible.