The Senate Committee on Finance met to vote out the Senate’s budget bill which will appropriate $106.3 billion in general revenue. This report details those discussions. CSSB 1, the Senate budget bill is expected to be considered on the Senate floor on Tuesday, March 28.
 
Nelson laid out CS SB 1.

  • Appropriates $106.3 billion in GR to fully fund FSP including:
    • $2.6 billion for enrollment growth
    • $25 million for E-Rate for all public schools
    • $65 million new public-private partnership for high quality pre-k in addition to the $1.6 billion for formula funding.
    • $316 million to fund SB 788 to address TRS shortfall
    • Increase funding for graduate medical education by $44 million
  • Dedicates roughly $5 billion for transportation in accordance to prop 7
  • Increase funding for Railroad Commission to maintain current operational stability and increases pipeline safety
  • Provides $40 million for infrastructure projects at Texas ports
  • Funds Medicaid cost load growth at fiscal year 18 forecasted levels
    • Identified roughly $400 million in Medicaid cost containment through quality and efficiency measures
  • Increases funding for CPS by roughly $430 million
    • $300 million to continue $1000/month employee pay raises
    • 828 case workers and support staff (approved over the interim)
    • $55 million to hire 386 new conservatorship case workers
    • $160 million to increase Foster Care capacity
  • Increases funding for mental health by $244 million
    • $63 million to eliminate waitlist for community mental health services
    • $780 million commitment for new construction and significant repayors to state hospital system.
    • Maintains funding for women’s health programs – $31 million increase over current spending levels
  • Only represents the appropriations side – changes occurring simultaneously on revenue side.
    • $2.5 billion of the prop 7 transfer can occur in Sept. 2019 and will not count against fiscal year 18-19 biennium.
  • Bettencourt – understanding that for the full $2.5 billion the sales tax collections must reach a certain benchmark. If transfer is made in August, comptroller cannot calculate the sales tax. In September, the comptroller will have all data to ensure proper calculations. Key point: still transferring money to transportation.
    • Nelson – doesn’t take away any money from transportation projects
  • Nichols – asked if transfer will have effect on TxDOT projects
    • Nelson confirmed no effect. Doesn’t take any of transportation money away.
  • West – Appears $1.3 billion negative difference in GR funding for public education. Looking at all funds, there is an increase of $3.5 million. Are we fulling funding public education or taking money out?
    • John McGeady, LBB – primary reason for negative relates to the FSP. Bill fully funds current law for FSP. The state costs for fully funding is less than it was in 16-17. We can put in $1.4 less to fully fund it this year.
  • West – asked for proper response when addressing public education funding.
    • McGeady – Bill fully funds FSP. There are less state costs to obligation because of rising property taxes. Program is fully funded in current law.
  • West – rephrased McGeady’s answer for clarification on public education. When looking at all funds, it appears we are funding an additional $395 million in education, why the discrepancy?
    • McGeady – Reason why there is less in the FSP is because there is more recapture, which is another fund. It may look like a GR decrease, but it’s a wash. Federal funds come through TEA that tend to increase year to year based on student growth.
  • West – all funds, what are the sources of all the funds, the categories?
    • McGeady – GR, GR Dedicated, Federal funding, other funds. For TEA, categories are property tax relief funds and recapture payments.
  • West – considering all sources of funding, there was an increase of $395 million in education?
    • McGeady – including $1.7 billion for student growth.
  • West – questioned about TRS funding
    • McGeady – adds $311 million for TRS shortfall in two parts. One part is cost of increasing state contribution rate from 1% to 1.25% and supplemental amount to address the shortfall.
  • Nelson – reiterated $1.63 billion appropriations request is within budget.
  • Adjustments were made through committee recommendations.
    • Adjusted FTE allotments at 5 agencies to conform to committees’ decisions
    • Added/amended/deleted riders to conform to committee decisions
    • Adjusted capital budget items to conform to committee decisions
  • Taylor – looking at GR, spending 52% of budget on public education and 32% on Healthcare. When people talk about spending, this is the story that needs to be told.
    • Nelson – expressed agreement excitedly
  • Uresti – thanked Nelson for leadership. Would like to see more money in CPS for preventative services in the future.
  • Hinojosa – thanked Nelson for leadership.
  • Huffman – Article II and III eat the budget up entirely, found efficiencies but approach had to the climb to better the state. Asked agencies and prisons to operate at “lean” capacities.
  • Hancock – thanked Nelson for leadership.
  • Schwertner – agreed with Hancock’s statements. Article II is the cost driver and key stone to state budget, but it speaks to our priorities.
  • Birdwell – Expressed gratitude for Nelson’s leadership.
  • Nichols – Article VI, VII, and VII had to be shifted and prioritized, but it was worth it.
  • Kolkhorst – thanked Nelson for leadership

 
CS SB 1 passed to full senate. (15 ayes and 0 nays)