Texas Budget Process
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1 THE PLAYERS Texas Budget Process Executive/Administrative Governor o Governor's Office of Budget, Planning, and Policy (GOBPP) Departments and Agencies o Comptroller of Public Accounts o State Auditor s Office Legislature o Senate Senate Finance Committee o House of Representatives House Appropriations Committee o Legislative Budget Board (LBB): Lieutenant Governor David Dewhurst Speaker of the House of Representatives Joe Straus Sen. Tommy Williams Rep. Jim Pitts Sen. Robert Duncan Rep. Harvey Hilderbran Sen. Juan Hinojosa Rep. Dan Branch Sen. Judith Zaffirini Rep. Sylvester Turner THE PROCESS Texas uses a biennium budget to cover spending and revenue for two year periods. The process for the next two fiscal year s budget begins in the spring of even- numbered years (to be eventually passed in the odd- year budget). The Texas legislature is only in session for 140 days. In the spring of even numbered years, The Governor's Office of Budget, Planning, and Policy (GOBPP) and the Legislative Budget Board (LBB) issue instructions for developing strategic plans in the spring preceding a legislative session. These instructions provide both a broad mission statement identifying the core principles of state government, as well as specific goals and benchmarks for individual state services and programs. Shortly after receiving these instructions the departments and agencies begin developing their strategic plans. A strategic plan is a long- term plan that identifies an agency's current status, focus and orientation, as well as its planned future direction. Strategic plans include a mission statement, identification of its goals and the population it serves, and a description of the means by which the agency plans to achieve its goals. After developing a strategic plan, the agency submits its plan to the GOBPP and the LBB for approval. 1
2 Around the same time that strategic plans are being developed the LBB sends out instructions for Legislative Appropriation Requests (LARs). These instructions are used by agencies to develop their budget requests. Included in each agency's LAR are the performance measures on which budgeting is based. During the summer months, the LBB and GOBPP hold hearings with each agency to review its strategic plan and draft LAR. From these hearings the LBB and GOBPP determine the items to be included in the agency's final appropriation request. The finalized LARs must be submitted by the end of the summer and copies must be provided to the LBB, GOBPP, the state auditor, the state comptroller. These LARs form the basis for the appropriations bill prepared by the LBB. The legislature then prepares the draft of the general appropriations bill, usually by the fall. The draft of the appropriations bill is filed in both houses of the legislature, allowing each house to work on the bill simultaneously. The Senate Committee on Finance and the House Committee on Appropriations, working separately, begin by hearing testimony from state agencies and others on the budget. Each committee makes changes to the budget document, a process known as "markup." After the bill passes out of these committees, it comes to the floor of each chamber for debate and ultimately approval. The bill is then referred to a conference committee composed of members of both houses to resolve differences between the senate and house versions of the bill. After the conference committee has agreed on a version of the appropriations bill, it sends the bill back to both houses for a final up- or- down vote (no amendment allowed). If the appropriations bill is passed by both houses, it is sent to the comptroller for certification. The Texas Constitution requires the comptroller to certify that there will be sufficient revenue to cover the appropriations made by the legislature. If not, then cuts need to be made. If the appropriations bill is certified by the comptroller, it goes to the governor for signing. The Texas Constitution gives the governor line- item veto authority- - the authority to veto individual items in the appropriations bill. If the legislature is still in session when that authority is exercised (theoretically possible, but unlikely), it may override any vetoed line- items by a two- thirds majority vote in each house. TIMELINE Spring (even- numbered year) - The Governor's Office of Budget, Planning, and Policy (GOBPP) and the Legislative Budget Board (LBB) issue instructions for developing strategic plans in the spring preceding a legislative session 2
3 Summer (even- numbered year) - The LBB and GOBPP hold hearings with each agency to review its strategic plan and draft LAR. The LBB also sends out instructions for Legislative Appropriation Requests (LARs). Fall (even- numbered year) - LBB staff prepares the draft of the general appropriations bill. January (odd- numbered year) Biennial legislative session begins and House and Senate hold public hearings through February. April (odd- numbered year) Committees refer budget to full chamber April May (odd- numbered year) Conference committee negotiates House and Senate versions. May- June (odd- numbered year) Comptroller certifies the budget as not appropriating more spending than revenues taken in and sent to the Governor for signature. 3
4 4
5 SOURCES About the LBB, Legislative Budget Board, accessed August 22, 2013, The Budget Process: Four Phases, University of Texas, accessed August 22, 2013, The Texas Budget Process: A Primer, Texas Transparency, accessed August 22, 2013, 5
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