Budget Transparency and Reform

Lawmakers took important steps to increase transparency in the budget process and institute reforms that will benefit Texas taxpayers. We also repealed a $200 licensing fee imposed annually on 16 different professions. The elimination of this tax will save Texas professionals about $250 million over the next biennium.

House Bill 7 will increase transparency in the budget process and institute reforms that will benefit Texas taxpayers. This bill seeks to address certain unspent dedicated revenue in the general revenue fund as counted toward overall budget certification. The House has been concerned that these amounts have grown substantially over time and those funds should be reduced.

An example of accounts that were consolidated were Texas-B-On-Time Loan, which will now enable the funds to be equitably appropriated to schools in the proportion they paid in; the Trauma Fund, which consolidated two of the state's trauma accounts for easier administration; and the repeal of a $200 additional licensing fee, an occupations tax, imposed annually on 16 different professions. The elimination of this tax will save Texas professionals about $250 million over the next biennium.