Miscellaneous Expenditures — Real and Personal State Property
Leased Office Space

State agencies may not use appropriated funds to lease a state-owned office or building space that is funded from Texas Public Finance Authority revenue bonds. This includes moving into newly constructed, purchased, expanded or renovated state properties.

Efficient use of state property

Upon expiration of a current lease or when opening new locations, state agencies, or the Texas Facilities Commission on behalf of state agencies, must identify and prioritize state-owned property with available capacity for relocation prior to leasing privately owned space. Agencies must use state-owned property if such use is cost effective and consistent with the designated use of the property.

Moving into state-owned property

Should an agency move from a leased space into a state-owned property, the Comptroller's office must reduce funds appropriated to the agency by an amount equal to the lease costs that would have been incurred for the remainder of the biennium had the agency remained in the lease space, minus any moving or tenant finish-out expenses.

Obtaining a lower lease rate

If an agency is able to obtain a lease at a rate less than it is currently paying, the Comptroller’s office is required to reduce the funds appropriated to the agency by the amount of the savings. If the agency is required to move to obtain the reduced lease rate, the Comptroller’s office must reduce the agency’s appropriations, less any moving or tenant finish-out expenses incurred by the agency.

Note: The restrictions above do not apply to an entity or appropriation in Article X of the GAA pertaining to designated legislative agencies.

See also: Appropriation Year Determination.

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