LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 7, 1997 TO: Honorable Steven Wolens, Chair IN RE: Senate Bill No. 1055, Committee Report 2nd House, Substituted Committee on State Affairs By: Haywood House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1055 ( relating to the operation and oversight of a regional planning commission, council of government, or other similar regional planning agency.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1055-Committee Report 2nd House, Substituted Implementing the provisions of the bill would result in a net negative impact of $(289,994) 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 Local Government Code relating to the operation and oversight of regional planning commissions, councils of government, and similar regional planning agencies. The bill would require the Governor to adopt rules relating to the operation and oversight of the commissions, receipt and expenditure of funds, annual reporting and audit requirements, and the establishment and use of standards to measure productivity and performance of a commission. The Governor and state agencies would be required to provide technical assistance to a commission to ensure compliance with the rules, requirements, and guidelines established by the bill. The bill would establish new reporting requirements for regional planning commissions and establish several restrictions on commission costs, employment, and salary schedules. A commission would be required to submit its overall salary schedules, including exempt positions, for approval by the Governor no later than 45 days before the beginning of its fiscal year. Methodolgy The Office of the Governor has indicated that it would need additional resources to implement the oversight and technical assistance provisions of the bill. Two full-time equivalent employees (FTEs) would be needed for rule-making and financial oversight. Other support and travel costs associated with these two FTEs are also included. Any savings to the state due to improved accountability for expenditures by regional planning commissions are not expected to be significant. 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 ($153,747) 2.0 1998 (136,247) 2.0 2000 (121,247) 2.0 2001 (121,247) 2.0 2002 (121,247) 2.0 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 ($153,747) 1999 (136,247) 2000 (121,247) 2001 (121,247) 2002 (121,247) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No significant fiscal implication to units of local government is anticipated. Source: Agencies: 308 State Auditor's Office 304 Comptroller of Public Accounts 301 Office of the Governor LBB Staff: JK ,JD ,RN