By: Rep. Rick Galindo
Texas Insider Report: AUSTIN Texas After hearing from thousands of constituents concerned about government transparency and waste State Representative Rick Galindo today filed House Bill 1743 the Texas Credit Rebate Act which with rules adopted by the Comptroller would encourage that more state agency travel expenses are paid for on the state card rather than on employees personal purchase cards.
This bill would result in three remarkable benefits: 1) reduced agency costs with a more streamlined payment process; 2) greater transparency with more agency purchasing and travel expenses clearly line-itemed and; 3) capitalizing on the state cards underutilized rebate rate - bringing in new revenue without a penny in new taxes.
This legislation will save tax dollars and even brings in new non-tax non-fee revenues said Galindo. Im proud that this bill is the kind of solution that eliminates the need to raise taxes on our hard-working families.
In 2011 Texas state agencies put only .157 percent of total state expenditures on the state card. Many of these purchases went on personal purchase cards. These expenditures require a tedious reimbursement process with no sure way of tracking line items. This practice also results in the dismal underuse of the 1.73 percent rebate on state credit card purchases. If Texas were to increase its state card expenses simply to the national average of .86 percent we would reap nearly $12 million in new revenue without costing the taxpayers a penny.
Of 47 states which use cards Texas ranked 42nd in the percentage of expenses placed on the cards. If Texas were to match West Virginias 9.66 percent we would realize an incredible $163 million in new revenue annually - more than the amount Texas budgeted to combat crime and terrorism this year.
Rep. Galindo files this bill just days after Governor Abbott in his State of the State address called for state agencies to reduce their budgets by three percent. This bill is an easy painless way to help Governor Abbott achieve his vision for the future said Galindo.
