According to the Legislative Budget Board (LBB), the fiscal implications of SB 2405 are complex and partially indeterminate, though the bill is expected to result in substantial long-term cost savings. One of the bill's central fiscal impacts relates to reforms in parole-voted program placements. The legislation mandates a strategic plan to reduce program placement timelines by 50% by 2027, which, if successful, would decrease the average daily prison population. According to the Sunset Advisory Commission, this change could yield cost savings of approximately $49.1 million annually starting in the fiscal year 2028, based on an estimated reduction of 1,736 incarcerated individuals per day at a per diem cost of $77.49.

However, the Legislative Budget Board notes that the actual fiscal impact from shortening parole placement delays and buffers is difficult to predict due to a lack of granular data on affected individuals and the potential increase in demand on parole supervision infrastructure. While the anticipated reduction in prison population could help offset rising incarceration projections, this would likely shift costs to community supervision systems, creating cost avoidance rather than net savings in some areas.

The bill also requires the Texas Department of Criminal Justice (TDCJ) to develop a 10-year facilities and staffing plan. While the Sunset Commission anticipates no direct fiscal impact from this requirement, TDCJ has indicated that it may need to hire a third-party contractor to complete the plan, which could incur additional but currently undefined costs. Other provisions of the bill—such as expanded data collection, program evaluations, updated training for oversight boards, and adjustments to parole officer caseload guidelines—are expected to be absorbed within TDCJ’s existing budget.

Overall, while the bill introduces potential administrative costs, particularly around planning and data infrastructure, these are largely expected to be offset by future cost savings through improved efficiency in parole processes. The long-term financial benefit hinges on successful implementation of the mandated reforms and reductions in incarceration through streamlined rehabilitative programming. No significant fiscal impact is expected for local governments.

SB 2405 responds to a critical Sunset review of the Texas Department of Criminal Justice (TDCJ) and affiliated entities, including the Board of Pardons and Paroles (BPP), Windham School District, and the Correctional Managed Health Care Committee. The bill proposes a 12-year continuation of these agencies and delivers an expansive set of reforms to improve oversight, reduce inefficiencies, modernize outdated systems, and improve rehabilitative and reentry outcomes. It also introduces clearer procedures for managing parole-voted programs, expands data collection and reporting, and prioritizes reductions in program delays that could result in long-term cost savings.

The bill substantially implements the statutory recommendations made by the Sunset Advisory Commission. These include the creation of a long-term facilities and staffing plan, comprehensive rehabilitation program evaluations, new training standards for parole and board members, and improved parole supervision processes. Notably, the bill incorporates a key recommendation to reduce parole program placement delays by 50% by 2027, with potential savings estimated at more than $49 million annually beginning in FY 2028.

However, some recommendations were not fully adopted. For example, a standalone phased facility closure plan (Sunset Recommendation 1.2) was not included as a separate provision, though its intent is addressed within the broader planning framework. Additionally, the recommendation (5.3) to allow temporary parole condition modifications by parole officers was excluded, and several nonstatutory management directives were left to agency implementation. These gaps highlight areas where amendments could improve consistency with Sunset’s full intent.

Despite these omissions, the bill’s foundation is strong. It modernizes agency operations, supports effective rehabilitation, and enhances transparency in parole decisions. For these reasons, Texas Policy Research recommends that lawmakers vote YES on SB 2405 while also encouraging lawmakers to further refine the bill to ensure all viable Sunset recommendations are meaningfully implemented and that critical areas of internal accountability are not left behind.

• Individual Liberty: The bill supports individual liberty in several key respects by this bill. It improves access to timely parole consideration by requiring TDCJ and the Windham School District to reduce parole-voted program placement delays by 50% by 2027. It also enhances transparency in parole decisions, including those related to medically recommended intensive supervision (MRIS), through clearer rules and required medical evaluations. These changes reduce arbitrary decision-making and empower individuals to more actively manage their reentry process. However, the bill also codifies the Office of the Inspector General as an independent law enforcement entity and expands the list of entities with peace officer authority. These provisions broaden the reach of the state's coercive powers without adding corresponding checks and oversight, raising potential concerns about due process and government overreach. These expansions should be amended or constrained to ensure they do not erode constitutional protections.

• Personal Responsibility: The bill strengthens rehabilitation and reentry programs by requiring individualized treatment plans in plain language, setting clear expectations for incarcerated individuals to meet program requirements. By emphasizing vocational and educational programming tied to job market demands, it empowers individuals to prepare for life after release and reduces dependency on state support. These changes reinforce the expectation that individuals take ownership of their rehabilitation and reintegration, aligning well with the principle of personal responsibility.

• Free Enterprise: Free Enterprise is indirectly supported by the bill’s emphasis on career and technical education programs within TDCJ and Windham. By requiring that rehabilitative programs be tied to industry certification and employability outcomes, the bill helps prepare formerly incarcerated individuals for meaningful participation in the workforce. These changes contribute to a stronger labor pool and support reintegration into the free market. Additionally, the bill’s provision allowing data-sharing between Windham and the Texas Higher Education Coordinating Board facilitates partnerships that align correctional education with labor market needs.

• Private Property Rights: Private Property Rights are not substantially affected by the bill. The bill does authorize the development of a long-term facilities and staffing plan that could involve recommendations for facility closures or repurposing. However, such changes relate to state-owned property and do not appear to impose new restrictions or risks to private property owners. Thus, the impact on this principle is neutral.

• Limited Government: On the positive side, the bill removes outdated statutory mandates (such as fixed unit capacities and parole caseload ratios) and places them under agency rulemaking, providing more responsive governance. It also improves transparency and oversight through data collection, program evaluation, and public reporting requirements. However, the expansion of state law enforcement authority through the formalization of the Office of Inspector General and the broadened definition of peace officers may risk increasing state power without sufficient external constraints. This represents a potential expansion of government reach that should be reconsidered or amended to ensure alignment with limited government principles.

Texas Sunset Advisory Commission: Staff Report and Commission Decisions

• HB 1515 (Same As)