85(R) - 2017
Eddie Lucio Jr.
Relating to the savings incentive program for state agencies.
The fiscal implications of the bill would vary by state agency depending on the amount of savings retained. Potential savings to the State, and to the General Revenue Fund, would be dependent on the extent to which participating agencies had outstanding general obligation debt.
Under current law, state agencies are permitted to keep one-fourth of financial savings that does not exceed one percent of nonfederal funding, the remainder of any financial savings go back in to the state's general revenue fund. SB 132 would change this to allow state agencies to keep one-half of savings, half of which would be applied to principal bond payments or employee bonuses. Bonuses would be capped and upper management would be excluded from any such bonuses.
Vote Recommendation Notes
SB 132 neither uplifts nor offends our liberty principles, therefore we remain neutral.