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