Fiscal Analysis The bill would include hourly, part-time, and temporary employees under the application of the Position Classification Act. Employees in these types of positions are currently exempted from that Act. Agencies with employees in this status would be required to assign the employees to an appropriate position classification title. If the required salary rate for the assigned position was at a higher rate than that currently being paid to the employee, the agency would realize an additional cost, assuming a constant employment level. The House version of the General Appropriations Act for the 1998-99 biennium, in Article IX, Section 1, contains language which authorizes an agency to maintain a current salary rate that is lower than the rate prescribed by Article IX in those cases where an employee had previously been exempted from the position classification plan. The current General Appropriations Act does not contain this language. The language proposed in the House version would mitigate the initial costs of implementing the bill. The fiscal analysis in this note assumes the continuation of current law and assumes no across the board salary increase for state employees. Methodolgy The agencies responding to our survey employ over 95% of the hourly employees in employed by state agencies other than institutions of higher education. The General Revenue Fund amounts indicated below represent estimate cost figures for the School for the Deaf. The State Highway Fund amounts represent estimated cost figures for the Department of Transportation. The State Parks Account amounts represent estimated cost figures for the Parks and Wildlife Department. 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 Probable Savings/(Cost) Savings/(Cost) Savings/(Cost) from General from State from State Parks Revenue Fund Highway Fund Account/ GR-Dedicated 0001 0006 0064 1998 ($33,123) ($35,859) ($116,995) 1998 (33,123) (35,859) (116,995) 2000 (33,123) (35,859) (116,995) 2001 (33,123) (35,859) (116,995) 2002 (33,123) (35,859) (116,995) Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 ($33,123) 1999 (33,123) 2000 (33,123) 2001 (33,123) 2002 (33,123) 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: 308 State Auditor's Office 655 Texas Department of Mental Health and Mental Retardation 601 Department of Transportation 501 Department of Health 802 Parks and Wildlife Department 304 Comptroller of Public Accounts 772 School for the Deaf LBB Staff: JK ,RR ,KO