RESPONSIBILITIES

The Legislative Budget Board (LBB) has a wide range of responsibilities that are intended to serve the fiscal policy and analysis needs of the Texas Legislature. These responsibilities incorporate those mandated by general law, those directed by the General Appropriations Act (GAA) and those that have been designated by the Board and its staff.

STATUTORY RESPONSIBILITIES

The following is a summary of significant responsibilities assigned by statute to the LBB:

• Adopt a constitutional spending limit (Section 316.002, Government Code; Article 8, Section 22, Texas Constitution) ;
• Prepare a General Appropriations Bill draft (Section 322.008(a), Government Code) ;
• Prepare a budget estimates document (Section 322.008(c), Government Code) ;
• Review programs and operations of state established entities and prepare a performance report (Section 322.011, Government Code) ;
• Conduct comprehensive reviews of school districts’ educational, financial and operational services and programs (Section 322.016, Government Code) ;
• Guide, review, and finalize agency strategic plans (Chapter 2056, Government Code) ;
• Prepare fiscal notes, impact statements on proposed legislation (Chapter 314, Government Code) ; and
• Maintain and provide public online access to state contract database (Section 322.020, Government Code).

OTHER RESPONSIBILITIES

The LBB staff provides the Texas Legislature with quality and objective fiscal analyses. LBB staff recommendations are presented to the House Appropriations and Senate Finance committees when producing the general appropriation bills and supporting documents. Additionally, LBB staff conduct multiple modeling, estimation, and forecasting in the areas of school finance, Medicaid and other Health and Human Services caseloads and costs, criminal justice population projections, and revenue forecasting and tax incidence.

LBB staff craft fiscal notes and impact statements as required by statute and House and Senate rules for a bill or joint resolution as it moves through the legislative process. An updated fiscal note and impact statement is required with each new iteration of legislation.

The GAA and statute grant the LBB with the authority to conduct a risk assessment on submitted contracts and detailed reviews of higher risk contracts. The LBB also maintains a major contracts database for contracts which meet certain thresholds determined by statute and the GAA. The contracts database is the single point of data entry for all contract information or contract documents that state entities are required to report.

The Legislature established the Quality Assurance Team (QAT) to provide ongoing oversight of major information resources projects that receive state appropriations. LBB staff serve as members of the QAT in addition to the Comptroller of Public Accounts, the Department of Information Resources, and the State Auditor’s Office. QAT’s goal is to help agencies successfully complete projects on time and within budget through regular oversight of a project’s life cycle.

LBB staff periodically may review the effectiveness and efficiency of the operations of school districts. LBB staff conducts comprehensive evaluations of the management and performance of school districts, which include analyses of districts’ educational, financial, and operational programs and services. The reviews are intended to provide findings to stakeholders to assist school districts achieve full state and federal compliance.

Each biennium, LBB staff conduct comprehensive budgetary analysis of selected agencies and agency programs known as the Strategic Fiscal Review (SFR). As required by statute, the SFR is conducted for each state agency undergoing Sunset Advisory Commission review and is subject to the legislative appropriations process. The purpose is to provide opportunities for better evaluation of agency effectiveness, return on investment, and potential alternatives in program structure and service delivery.