LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 16, 1997
TO: Honorable John Whitmire, Chair IN RE: Senate Bill No. 703
Committee on Criminal Justice By: Nelson
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB703 ( Relating
to the consolidation of the fiscal and program audit functions
of the Texas Department of Criminal Justice.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by SB703-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $2,864,800 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 amend the Government Code to statutorily create
an internal audit division within the Texas Department of Criminal
justice (TDCJ) that would conduct all internal audits, contract
audits, and audits of community supervision and corrections
departments. The State Auditor's Office would be required to
provide training and technical assistance to TDCJ related to
the internal audit division until January 1, 2000.
The bill
would also require all money collected or received by TDCJ,
including money in the local inmate trust account, to be deposited
in the General Revenue Fund of the state treasury. The bill
would take effect September 1, 1997, and all TDCJ funds currently
held outside of the state treasury would have to be deposited
in the General Revenue Fund no later than October 1, 1997.
Methodolgy
Upon the transfer of local funds to the state treasury in accordance
with provisions of the bill, TDCJ estimates $1,432,400 in interest
earnings annually would become available for general appropriation
purposes. The Comptroller of Public Accounts indicates additional
administrative overhead costs would be incurred by their office
upon transferring TDCJ's trust funds to the General Revenue
Fund due to the large volume of transactions processed for those
funds. The Comptroller Office further indicates it cannot estimate
a total cost for the additional workload.
Not included
in this estimate are potential savings outlined in The Texas
Performance Review (TPR) recommendation FR15 in Disturbing the
Peace: The Challenge of Change in State Government. TPR reports
potential general revenue savings of $1,170,000 annually through
implementation of the bill's provisions related to TDCJ's internal
audit division and related functions. These estimated savings
would be contingent upon a reduction in appropriations to TDCJ
to reduce the number of fiscal and program audit staff by 26
full-time positions.
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 Revenue Probable Revenue Probable
Gain/(Loss) from Gain/(Loss) from Savings/(Cost)
Other Funds General Revenue from General
Fund Revenue Fund
8042 0001 0001
1998 ($62,995,314) $62,995,314 ($61,562,914)
1998 (53,793,347) 53,793,347 (52,360,947)
2000 (53,793,347) 53,793,347 (52,360,947)
2001 (53,793,347) 53,793,347 (52,360,947)
2002 (53,793,347) 53,793,347 (52,360,947)
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 $1,432,400
1999 1,432,400
2000 1,432,400
2001 1,432,400
2002 1,432,400
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
304 Comptroller of Public Accounts
696 Department of Criminal Justice
LBB Staff: JK ,CB ,JN