LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 10, 1997
TO: Honorable Rene Oliveira, Chair IN RE: House Bill No. 2500, Committee Report 1st House, as amended
Committee on Economic Development By: Oliveira
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2500 ( Relating
to state agency loan and loan guarantee programs, the creation,
administration, and operation of the Texas Economic Development
Agency to administer state agency loan and loan guarantee programs
and to engage in capital formation initiatives to further the
state's economic and agricultural development goals, and to
the abolition of the Texas Department of Commerce and the Texas
Agricultural Finance Authority.) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by HB2500-Committee Report 1st House, as amended
Implementing the provisions of the bill would result in a net
negative impact of $(1,375,000) to General Revenue Related Funds
through the biennium ending August 31, 1999.
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
This bill would abolish the Department of Commerce and the Agricultural
Finance Authority and create the Texas Economic Development
Agency. The bill would combine the staff of the two abolished
agencies to form the new agency. In addition, the bill would
transfer program staff and funding involved in economic development
activity from several different agencies to the new agency.
In addition, the bill would establish the Office of Small
Business and the Small Business Ombudsman within the Texas Economic
Development Agency.
Methodolgy
The net impact of transferring existing agency functions to
the Texas Economic Development Agency would have a $0 fiscal
impact on the state. However, establishing an Office of Small
Business and the Small Business Ombudsman would have a fiscal
impact because the Department of Commerce is not provided funding
to perform these functions. This estimate assumes additional
appropriation authority would be provided to the new agency.
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 Change in Number
Savings/(Cost) of State
from General Employees from
Revenue Fund FY 1997
0001
1998 ($750,000) 12.0
1998 (625,000) 12.0
2000 (625,000) 12.0
2001 (650,000) 12.0
2002 (650,000) 12.0
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 ($750,000)
1999 (625,000)
2000 (625,000)
2001 (650,000)
2002 (650,000)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
Source: Agencies:
LBB Staff: JK ,TH ,CG