According to the Legislative Budget Board (LBB), the estimated net negative impact to General Revenue-Related Funds over the biennium ending August 31, 2027, is approximately -$31.4 million. The annual projected loss to the General Revenue Fund is $15 million in 2026, increasing to $16.4 million annually from 2027 to 2030. However, these amounts will be reallocated to the Trauma Facility and EMS Account, meaning there is no net loss to the state's overall finances—just a shift in funding priorities.

The bill does not impact local government finances, as the revenue redistribution strictly affects state-level accounts. Additionally, the bill may be subject to a legislative funds consolidation review, as it creates a dedicated revenue allocation that could impact the flexibility of general revenue expenditures.

While this change strengthens funding for trauma and EMS services, it reduces discretionary funds available for other general government functions, potentially requiring offsetting budget adjustments in future legislative sessions.

SB 1018 proposes a reallocation of state traffic fine revenue, shifting the current 70%-30% split between the General Revenue Fund and the Designated Trauma Facility and EMS Account to an even 50%-50% distribution. While this change strengthens funding for emergency medical services, it comes at the cost of reducing discretionary funds in the General Revenue Fund, which could affect other state priorities.

The fiscal note indicates a net loss to general revenue of approximately $31.4 million over the next biennium, increasing to $16.4 million annually thereafter. While no new costs are introduced, this revenue shift could limit legislative flexibility for future budgeting decisions. However, from a policy standpoint, this bill prioritizes trauma and EMS services, which are critical public health needs, ensuring stable funding for life-saving medical responses.

Given these competing considerations, the best course of action is to amend the bill to include a sunset review provision or a legislative reauthorization requirement every 6-10 years. This would allow lawmakers to periodically assess the impact of the funding shift and make necessary adjustments based on state budget needs. While the bill aligns with the principles of public health funding and service stability, ensuring budget flexibility is essential for responsible governance. As such, Texas Policy Research recommends that lawmakers vote NO on SB 1018 unless amended as described above.

• HB 3459 (Same As)