According to the Legislative Budget Board (LBB), SB 689 is not expected to result in a significant fiscal impact on the state. The analysis concludes that any costs associated with implementing the provisions of the bill—such as disbanding existing Diversity, Equity, and Inclusion (DEI) offices or modifying internal policies—can be absorbed within existing agency resources. This implies that no additional appropriations or budgetary adjustments would be necessary for state agencies to comply with the bill's requirements.
Similarly, for local governments, including municipalities and political subdivisions potentially subject to the bill, the fiscal impact is expected to be minimal or nonexistent. The bill does not impose costly mandates or create new reporting or enforcement structures that would require significant expenditures. The absence of penalties or financial liabilities further contributes to the limited fiscal impact.
The agencies surveyed for the fiscal note include a wide array of state entities, such as the Texas Education Agency, the Health and Human Services Commission, the Department of Transportation, and the Texas Workforce Commission. These agencies did not project any major financial burdens arising from the bill, reinforcing the assessment that compliance can be handled through reallocation or adjustment of existing personnel and administrative procedures.
SB 689 reflects a legislative intent to ensure equal treatment under the law by eliminating state-supported programs that promote identity-based classifications or preferences in public sector employment practices. The bill prohibits governmental entities from operating diversity, equity, and inclusion (DEI) offices or contracting third parties to perform such functions unless explicitly required by federal law. It also includes provisions for public complaints and enforcement by the attorney general, strengthening the legal and administrative framework to ensure compliance.
From a liberty-oriented perspective, this bill aligns well with the core principles of Individual Liberty and Limited Government. It prohibits state entities from endorsing or promoting ideologies that treat individuals differently based on race, sex, or other identity characteristics—thus supporting color-blind and merit-based policies. By dismantling the DEI infrastructure within state agencies, SB 689 also curtails bureaucratic expansion, aligning with the principle of restraining government to its core functions. The Personal Responsibility principle is reinforced by discouraging identity-based entitlements and encouraging assessment based on individual merit.
Importantly, the fiscal impact of the bill is expected to be minimal. The Legislative Budget Board’s fiscal note concluded that any related costs could be absorbed with existing resources, and no significant impact is anticipated for local governments. This supports the vote recommendation from a limited government and taxpayer accountability standpoint.
In sum, SB 689 is a strong affirmative step in reinforcing neutral, equal treatment under the law in Texas public employment while ensuring fiscal responsibility and adherence to limited government principles. As such, Texas Policy Research recommends that lawmakers vote YES on SB 689.