Among the statewide offices that will be filled by new faces in the 90th Legislative Session, the position of Comptroller of Public Accounts (CPA) may be one of the more obscure ones. Yet it is an important office with broad responsibilities that affect every Texan.

The comptroller is responsible for important administrative duties and must act soberly without becoming a lightning rod for attention or controversy. As the legislative session quickly approaches, Texans deserve a comptroller who respects the responsibilities and boundaries of the office, and acts in good faith to properly and apolitically conduct their duties.

Primary responsibilities

The comptroller is the chief financial officer of the state and leads one of the largest state agencies, employing just over 3,000 staff. The agency has rulemaking authority to set policy specifics, and must comply with laws passed by the Legislature.

The agency classifies its wide array of responsibilities as:

• Accountant. Issues the state’s financial reports, manages the state payroll and personnel systems, and audits state agency spending.
• Treasurer. Conducts state banking transactions, transfers funds, monitors cash flows, and coordinates with bond ratings agencies.
• Revenue collector. Collects and monitors state and local tax revenue, distributes local tax revenue to local governments, and audits taxpayers.
• Revenue estimator. Estimates available tax revenue for the state budget process, monitors and reports on the state economy, tax collections, and estimates fiscal impacts of legislation.
• Other. State and local transparency initiatives, local government grant program administration, procurement, and other assorted state initiatives such as broadband support and state energy conservation.

Budget and tax responsibilities

Every Texan takes special interest in the comptroller’s vital role in our state’s fiscal policy, including the collection of tax revenue and planning the state budget.

The comptroller’s office must conduct a fair and accurate biennial revenue estimate (BRE). Normally presented before each legislative session, the BRE sets the pay-as-you-go limit, one of five spending limits constraining the state budget. To develop the BRE, the agency’s revenue estimating division uses statistics and economic modeling to predict the amount of tax revenue collected over the next biennium. That projection must be as accurate as possible to ensure the Legislature can ensure suitable funding for public services and programs.

The comptroller must follow the direction of the Legislature as expressed in the state budget and other appropriations. The state’s fiscal policy, – taxing and spending, – is a core responsibility of the Legislature. The comptroller does not, for example, have the authority to exercise line-item veto over the budget the way the Governor can. The agency has an administrative duty to manage funds in the state treasury as directed in the budget, ensuring agencies and programs are properly funded according to the will of the Legislature and the Governor.

After the budget is passed and signed, the comptroller must certify that the final total is within the BRE limit. The comptroller should do so based upon a good-faith assessment of funds projected to be available in the state treasury over the course of the next biennium, without judgment of the policies or priorities expressed by the Legislature in the budget.

The comptroller’s office also performs other essential functions closely linked to the work of Every Texan.

The agency produces crucial reports to inform policymakers, advocates, and everyday Texans about how their tax dollars are spent. These reports must be accurate and free of bias. Researchers and advocates rely on those reports, such as the Tax Exemptions and Tax Incidence Report, for impartial, factual data on the impact and fairness of state fiscal policies.

The comptroller must comply with laws passed by the Legislature and cannot exceed the bounds of normal rulemaking authority. It should especially not do so for ideological reasons, or when administrative changes may clearly contradict legislative intent. For example, the Historically Underutilized Business (HUB) program was created by the Legislature in 1999 to provide businesses owned by women, minorities, and veterans greater opportunities for state contracts. In a sweeping rule change earlier this year, acting comptroller Kelly Hancock opted to end eligibility for women- and minority-owned businesses and rename the program VetHUB (Veteran Heroes United in Business). A group of business owners sued the comptroller’s office for exceeding its authority. A judge stopped the changes from going into effect, and the case is set to go to trial in November.

As the state’s accountant, the comptroller shares government oversight and audit responsibilities with other agencies and entities, including the State Auditor’s Office, the Legislative Budget Board, legislative committees, the Bond Review Board, and the Sunset Commission. The Comptroller must coordinate and cooperate with those agencies in any audits or investigations to ensure the smooth, responsible operation of state government.

Finally, the comptroller’s office monitors local government fiscal transparency through its Transparency Stars and other reporting programs. The agency must also be transparent itself. As opponents of the statewide private school voucher program, Texas Education Freedom Accounts (TEFA), we demand greater transparency from the Comptroller’s office to understand who is benefiting from it, and at what cost to the state. We hope the agency’s recent release of additional TEFA data is a sign of more transparency to come.