SB 5040: Relating to incorporating state tax expenditures into the state budget process

This bill states that the omnibus operating appropriations bill enacted by the legislature must include a tax expenditure section listing all discretionary state tax expenditures together with an estimate of the impact of those expenditures on state revenue, including any expected savings that the expenditures are projected to create. The same will be done for all appropriations and nondiscretionary tax expenditures. The department of revenue must submit the listing to the governor at the time biennial budget requests are due and the governor is requested to prepare a tax expenditure report as part of the budget documents. This report will include a budget analysis of each expenditure and categorize it according to the programs it supports. The governor must identify each expenditure that will terminate during the next biennium and make a recommendation as to whether the expenditure should be allowed to terminate, continue, or continue with modification.