LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 21, 1997
TO: Honorable Fred M. Bosse, Chair IN RE: House Bill No. 2018, Committee Report 1st House, Substituted
Committee on Land and Resource Management By: Maxey
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2018 ( Relating
to the allocation of space to state agencies.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by HB2018-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a
net positive impact of $752,000 to General Revenue Related Funds
through the biennium ending August 31, 1999.
Fiscal Analysis
The bill would amend the Government Code to require the General
Services Commission (GSC) to study the space requirements of
state agencies that occupy administrative office space. Administrative
office space would include state-owned administrative office
space and administrative office space leased from other sources.
The bill would exclude office space used by a health and human
services agency for the delivery of direct client services or
space located in a county with a population of 75,000 or less.
The bill would require each state agency to conduct an
on-site space analysis at each agency location and to develop
a space allocation plan using rules developed by GSC. Based
on a review of the space allocation plans submitted by state
agencies, GSC would be required: to identify areas of the state
in which more than one state agency occupied administrative
office space and that have the greatest potential for cost savings;
and, to evaluate the feasibility of colocating administrative
office space within the same local labor market.
The bill
would require GSC to conduct studies at least once during each
state fiscal biennium on the agency s own efforts to colocate
administrative office space and on the space usage of state
agencies in Travis County. Based on the GSC report of space
usage in Travis County, the bill would require the Comptroller
to reduce appropriations, by October 1, 1998, to each affected
agency by an amount equal to the lease costs that would have
been incurred for the remainder of the biennium if the state
agency had occupied the same amount of administrative office
space, less the moving costs and expenses identified by GSC.
This provision of the bill would expire August 31, 1999.
Methodolgy
The bill would require the Comptroller to reduce appropriations
in the 1998-99 biennium for certain agencies that experience
colocation savings associated with office space in Travis County.
Estimated savings are based on reduced lease costs resulting
from agencies in Travis County that could eliminate or reduce
lease space by complying with the 153 square feet standard.
Estimated moving costs were subtracted from the lease savings.
This explains the cost for fiscal year 1998: moving costs in
that year would exceed lease savings. Savings occurring after
fiscal year 1999 would depend on the extent to which additional
opportunities for colocation are identified and agency appropriations
are reduced as a result; but it is assumed that the savings
identified for fiscal year 1999 would continue into future fiscal
years.
Based on an analysis of expenditures by state agencies
for rental space and operating expenses, the Comptroller found
that 79 percent of expenditures are paid from general revenue,
while the remaining 21 percent are paid out of other funds.
Therefore, the savings shown below are split between general
revenue and other funds accordingly.
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 Probable
Savings/(Cost) Savings/(Cost)
from General from Other - Other
Revenue Fund
0001 OTHER-OTH
1998 ($25,000) ($7,000)
1998 777,000 207,000
2000 777,000 207,000
2001 777,000 207,000
2002 777,000 207,000
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($25,000)
1999 777,000
2000 777,000
2001 777,000
2002 777,000
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
The bill would
amend the Government Code to require the General Services Commission
(GSC) to study the space requirements of state agencies that
occupy administrative office space. Administrative office space
would include state-owned administrative office space and administrative
office space leased from other sources. The bill would exclude
office space used by a health and human services agency for
the delivery of direct client services or space located in a
county with a population of 75,000 or less.
The bill would
require each state agency to conduct an on-site space analysis
at each agency location and to develop a space allocation plan
using rules developed by GSC. Based on a review of the space
allocation plans submitted by state agencies, GSC would be required
to identify areas of the state in which more than one state
agency occupied administrative office space and that had the
greatest potential for cost savings and to evaluate the feasibility
of colocating administrative office space within the same local
labor market.
The bill would require GSC to conduct studies
at least once each state fiscal biennium on the agency s own
efforts to colocate administrative office space and on the space
usage of state agencies in Travis County. Based on the GSC
report of space usage in Travis County, the bill would require
the Comptroller to reduce appropriation, by October 1, 1998,
to each affected agency by an amount equal to the lease costs
that would have been incurred for the remainder of the biennium
if the state agency had occupied the same amount of administrative
office space, less the moving costs and expenses identified
by GSC. This provision of the bill would expire August 31,
1999.
The bill would require the Comptroller to reduce appropriations
in the 1998-99 biennium for certain agencies that experience
colocation savings associated with office space in Travis County.
Estimated savings are based on reduced lease costs resulting
from agencies in Travis County that could eliminate or reduce
lease space by complying with the 153 square feet standard.
Estimated moving costs were subtracted from the lease savings.
This explains the cost for fiscal year 1998: moving costs in
that year would exceed lease savings. Savings occurring after
fiscal year 1999 would depend on the extent to which additional
opportunities for colocation are identified and agency appropriations
are reduced as a result; but it is assumed that the savings
identified for fiscal year 1999 would continue into future fiscal
years.
Based on an analysis of expenditures by state agencies
for rental space and operating expenses, the Comptroller found
that 79 percent of expenditures are paid from general revenue,
while the remaining 21 percent are paid out of other funds.
Therefore, the savings shown below are split between general
revenue and other funds accordingly.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK ,BB ,RN