LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 17, 1997 TO: Honorable Steven Wolens, Chair IN RE: Senate Bill No. 784, As Engrossed Committee on State Affairs By: Barrientos House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB784 ( Relating to the Texas Incentive and Productivity Commission. ) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB784-As Engrossed No significant fiscal implication to the State is anticipated. The bill would make changes to the way the Texas Incentive and Productivity Commission (TIPC) administers the State Employee Incentive Program and the Productivity Bonus Program, and would provide a new funding mechanism for TIPC. Currently, participating agencies transfer a portion of the savings resulting from the programs to TIPC. Under this bill, all state agencies and higher education institutions would be required to transfer to TIPC an amount equal to the number of employees employed by the agency or institution times an amount set by appropriation. The Comptroller of Public Accounts estimates that a per-FTE assessment of 72 cents would produce an amount roughly equal to TIPC's current appropriation. Additionally, the bill would eliminate the requirement that agencies lapse a portion of identified savings back to the state. Under the bill, the Comptroller would transfer the total amount saved by an agency or institution into accounts created for each agency and institution. The funds in these accounts could be used only for paying bonuses to participating employees, for employee training, and for capital expenditures expected to increase agency productivity. The bill also makes several changes to the statutes governing the administration of the programs. These changes have no fiscal impact. No fiscal implication to units of local government is anticipated. Source: Agencies: 304 Comptroller of Public Accounts 353 Incentive and Productivity Commission LBB Staff: JK ,JD ,SC