LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 24, 1997
TO: Honorable Bob Hunter, Chair IN RE: House Bill No. 2721
Committee on State, Federal & International Relations By: Hunter
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2721 ( Relating
to the TexShare library sharing consortium.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by HB2721-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(2,919,602) 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
The bill would establish, in statute, the TexShare library
consortium as a program to be operated by and within the State
Library and Archives Commission for libraries at institutions
of higher education, including private colleges and universities
and community and junior colleges. The bill allows the State
Library to collect membership fees, directs the director and
librarian of the commission to employ staff sufficient to achieve
the purposes of the consortium, establishes an advisory board,
and authorizes reimbursement to members for expenses incurred
in performing official duties.
The bill would allow the
commission to accept and spend gifts or grants of money, property
or services.
The bill authorizes the commission to make
grants to institutions of higher education and to enter into
group purchasing agreements on behalf of consortium members.
The bill would take effect September 1, 1997.
The cost to
the State Library of providing database access to TexShare members
was estimated by tripling the current cost of database contracts
(approximately at roughly $350,000 per year) to reflect the
increased usage that will result from expanding of membership
eligibility.
The fiscal note includes costs associated with
the additional staff the State Library and Archives Commission
would need to establish, maintain, and operate the TexShare
program. The State Library estimates that a total of four additional
FTEs, at a cost of $152,521 in each fiscal year, would be required.
The fiscal note also includes an estimate of the costs for
needed equipment, including computers and software licenses;
costs to reimburse advisory board member expenses; and the costs
associated with contracting for computer programming services
and training for member libraries.
Methodolgy
The State Library and Archives Commission estimates that there
are currently approximately 56 libraries that make use of TexShare
services. By expanding eligibility for membership to include
private colleges and universities and community and junior colleges,
it is anticipated that approximately 113 additional libraries,
or a total of 169, will make use of TexShare services.
This
estimate assumes that TexShare services, as administered and
operated by the State Library and Archives Commission, will
continue at the same level as during the 1996-1997 biennium,
and the services, as indicated above, will be used by roughly
three times as many libraries. This estimate assumes that TexShare
members will continue to pay 25% of the costs of on-line database
subscription services, but will not pay membership fees.
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 ($1,482,301) 4.0
1998 (1,437,301) 4.0
2000 (1,437,301) 4.0
2001 (1,437,301) 4.0
2002 (1,437,301) 4.0
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 ($1,482,301)
1999 (1,437,301)
2000 (1,437,301)
2001 (1,437,301)
2002 (1,437,301)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 306 Library and Archives Commission
LBB Staff: JK ,TH ,JA