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From LBB: Estimated Two-year Net Impact to General Revenue Related Funds for HB367, As Introduced: a positive impact of $213,737,840 through the biennium ending August 31, 2019.
This bill would prohibit the Comptroller from depositing funds received from the federal government to the credit of the General Revenue Fund (GRF). However, "interest, other earnings on money, earned credits, and indirect cost recoveries received from the federal government" would be deposited to the credit of the GRF. The Comptroller would be required to account for and administer federal money separately from money in the GRF in a manner that ensures "federal money is used for the purposes for which federal money is received."
Removing federal funds from general revenue would effectively reduce the cap on the Economic Stabilization Fund which in turn would mean that once the ESF cap is reached funds that would otherwise be transferred to the ESF would instead remain in the GRF thus increasing general revenue funds available to be spent on state priorities.
This bill supports limited government by increasing transparency in the handling of federal funds and making it easier to track those funds. Keeping federal funds separated from general revenue will allow fewer opportunities for budget gimmicks and make it easier for citizens to see what funds the state receives from the federal government and how those funds are used. For these reasons we support HB 367.