The fiscal implications of SB 480, as analyzed by the Legislative Budget Board, indicate that the bill is not expected to have a significant financial impact on the state. While the state may choose to enter into contracts with local governments for water research or planning activities, any associated costs are anticipated to be minimal.

For local governments, the fiscal impact will depend on whether they decide to participate in such contracts. Those that opt in may incur costs related to joint research or planning efforts, but these costs would be determined by the specific agreements they enter into. Because the bill does not mandate participation, any financial commitments would be voluntary, allowing local governments to assess their own fiscal capacity before engaging in these cooperative efforts.

SB 480 enhances local government autonomy by allowing cities, counties, and other local entities to voluntarily collaborate with each other, the state, or the federal government on water research and planning. Given Texas’ ongoing water challenges, including droughts and population growth, fostering cooperative efforts in water resource management is a prudent step toward ensuring sustainable and efficient water use. The bill does not mandate participation, meaning that local governments retain full control over whether and how they engage in these agreements, aligning with the principle of limited government while promoting responsible resource management.

From a fiscal perspective, SB 480 does not impose any significant financial burden on the state, and any costs incurred by local governments would be at their discretion, depending on the agreements they choose to enter. This ensures that taxpayer resources are not unnecessarily allocated without direct local benefit. Additionally, by facilitating joint research and planning, the bill encourages data-driven decision-making and could lead to more cost-effective water management strategies at the regional level. Because it respects private property rights, supports free enterprise by improving water resource reliability, and maintains governmental efficiency without creating new bureaucracies, the bill upholds key liberty principles.

Overall, SB 480 represents a commonsense, non-coercive approach to water planning that benefits Texas communities while keeping the government’s role appropriately restrained. It supports long-term resource stewardship without imposing unnecessary costs or mandates. For these reasons, Texas Policy Research supports SB 480.

• HB 3383 (Same As)