Newsroom

Making state agencies more efficient and self-sufficient

Tuesday, February 10, 2009

This Bill:

1. Requires state agencies to review functions and look for ways to become more efficient and self-sufficient.
2. Seeks out savings or additional revenue, allowing the state to use general revenue for core functions that truly rely on taxpayer dollars.

How:

• The bill requires agencies to evaluate functions paid for through general revenue, and to determine whether those operations should or could be paid through fees.
• It also requires agencies to review functions paid for through other revenue sources and determine whether those sources ought to be increased.
• If agencies determine that functions should be paid for through new or increased fees, they would need to do a study recommending fee amounts, describing who would be affected, and estimating the amount of revenue that would be received.
• In amending Chapter 2056 of the Government Code, the requirement would not apply to university or higher education systems, purely regional entities, constitutionally created or advisory agencies, the judicial or legislative branches, or the Governor or Lieutenant Governor’s office. (2056.001)
• Amends Section 316 of the Government Code to allow fee levels to cover indirect costs.

Why:

• This bill takes a comprehensive approach to state agencies and their various revenue sources, ensuring every agency is trying to be self-sufficient where possible and none is being unduly impacted with excessive fee increases.
• It creates a reasonable timeframe and process for identifying additional resources the state should pursue.
• It gives agencies flexibility to review their own processes without dictating a solution.
• It ensures certain populations of “fee-payers” are not unfairly targeted for additional state revenue.

Relevant Statistics:

• Roughly $17 billion was collected from licenses, fees, fines, and penalties in the current biennium.  More than $80 billion, by contrast, was paid in taxes.