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Presentation, discussion, and possible action on the SFY 2025 Operating Budget
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RECOMMENDED ACTION
recommendation
WHEREAS, the Governing Board of the Texas Department of Housing and Community Affairs (“the Department” or “TDHCA”) is required to approve a SFY 2025 Operating Budget;
WHEREAS, the Department is required to submit the budget to the Office of the Governor (OOG) and the Legislative Budget Board (LBB); and
WHEREAS, the Department is required to establish the salary of the Executive Director;
NOW, therefore, it is hereby
RESOLVED, that the SFY 2025 Operating Budget, in the form presented to this meeting, is hereby approved;
RESOLVED, that the Board approves a salary for the Executive Director up to and including the amount budgeted for the position in Article VII of the 2024-2025 General Appropriations Act (GAA); and
FURTHER RESOLVED, that upon approval by the TDHCA Governing Board, the Department will submit the budget to the OOG and the LBB.
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BACKGROUND
In accordance with Tex. Gov’t Code §2306.112 et seq., TDHCA is charged with preparing an operating budget for Board adoption on or before September 1 of each fiscal year. The budget includes operational expenses distributed among the Department’s divisions. It does not include federal or state program funds that pass through to subrecipients except for administrative funds used by the Department associated with those federal or state funds that are retained and reflected in the budget. This budget anticipates maximizing all federal administrative resources. In addition, in accordance with internal auditing standards and the Board’s internal audit charter, the budget includes the Internal Audit Division’s annual operating budget.
This SFY 2025 Internal Operating Budget, which the Board is being asked to approve, corresponds to the first year of the biennial General Appropriations Act (GAA) passed by the 88th Texas Legislature which appropriated $606,739,647. In total, this budget provides for administrative expenditures and associated revenues of $50,951,277 or a $52,616,679 (50.8%) decrease from the prior year’s budget. Of the total net decrease, $50,837,501 is associated with temporary federal funding and a $4,071,099 decrease in Capital Budget projects, offset by a $2,291,921 increase associated with the Department’s core programs.
The budget reflects 399 Full Time Equivalents (FTEs). Of the total FTEs, 270 FTEs are TDHCA CAP FTEs, 64 are related to the Manufactured Housing Division, and 65 are Article IX (Temporary) FTEs associated with COVID-19 stimulus federal funds.
Additionally, the Housing Finance Division budget, which is funded with fees generated from the Department’s Bond, Housing Tax Credit, Asset Management, and Compliance activities, decreased by $1,757,845 or 7.4%. This decrease is primarily attributed to a $2,533,695 reduction in funding for the Capital Budget offset by an increase of $775,550 for a 5% across the board salary increase budgeted in the GAA.
For a complete explanation of the aforementioned budget categories and details, please see the accompanying Comparison Report.