LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 13, 1997 TO: Honorable John Whitmire, Chair IN RE: House Bill No. 819, As Engrossed Committee on Criminal Justice By: Cuellar Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB819 ( Relating to reducing the recidivism rate for individuals under the supervision of the Texas Department of Criminal Justice.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB819-As Engrossed Implementing the provisions of the bill would result in a net impact of $0 to General Revenue Related Funds through the biennium ending August 31, 1999. The fiscal note is being revised because the committee vote was reconsidered. The revision does not contain any change in the fiscal implications. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Fiscal Analysis The bill would amend the Government Code to statutorily create a programs and services division within the Texas Department of Criminal Justice (TDCJ). The programs and services division would be required to administer TDCJ's programs that are designed for the primary purpose of rehabilitating inmates. The bill would also provide criteria to the Board of Criminal Justice for selection of Industry Advisory Committee members, provide criteria to TDCJ as to which inmates to assign to the prison factories, require the Criminal Justice Policy Council to develop methods for measuring the success of certain agency programs, require TDCJ and the Texas Workforce Commission to adopt a memorandum of understanding that establishes their respective responsibilities for providing released inmates with certain education and employment services, and require the State Council on Competitive Government to conduct a comprehensive review of services provided by the prison industries office. Methodolgy The bill would partially implement Texas Performance Review (TPR) recommendation PSC 1 in Disturbing the Peace: The Challenge of Change in Texas Government. The TPR estimates that implementing the provisions of the bill would lower the recidivism of adults leaving the correctional system by at least five percent. This would result in eventual savings to the state because certain prison costs would not be incurred in the future for those inmates. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Savings/(Cost) from General Revenue Fund 0001 1998 $0 1998 0 2000 0 2001 4,340,000 2002 5,717,000 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 1999 0 2000 0 2001 4,340,000 2002 5,717,000 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No significant fiscal implication to units of local government is anticipated. Source: Agencies: 696 Department of Criminal Justice 304 Comptroller of Public Accounts LBB Staff: JK ,CB ,JN