LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 3, 1997 TO: Honorable Eddie Lucio, Jr., Chair IN RE: Senate Bill No. 1055, Committee Report 1st House, as amended Committee on Intergovernmental Relations By: Haywood Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1055 ( Relating to the oversight and operations of regional planning commissions and councils of government.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1055-Committee Report 1st House, as amended Implementing the provisions of the bill would result in a net negative impact of $(529,994) 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 This bill would require the Governor's Office to issue rules concerning the oversight of commissions and ensure compliance with these rules. The bill would designate the Comptroller of Public Accounts as the cognizant agency for review and approval of a commission's indirect cost allocation plan. The bill would require each planning commissions to seek input from state agencies that provide funds to the commission on objectives of the agency to be addressed in the commission's independent audit. The bill would require state agencies to coordinate audit efforts through the Governor's Office. Methodolgy The Governor's Office estimates that this bill would require two additional professional staff to implement rule issuing and ensure compliance. The cost of additional staff and benefits is estimated at $96,747 annually. The Governor's Office also estimates additional travel, professional services and equipment costs of $57,000 in the first year of implementation, $39,500 in the second year, and $24,500 in subsequent years. The Comptroller of Public Accounts estimates that cognizant agency responsibilities for planning commissions would require increased administrative duties. The Comptroller anticipates contracting for services associated with these responsibilities at an estimated $5,000 per commission per year for each of the state's 24 commissions, for an annual cost of $120,000 per year. This cost could decrease in future years, once procedures are established. No cost savings were eported by the Natural Resource Conservation Commission, the Department of Transportation, or the Department on Aging associated with the audit coordination provisions of the bill. 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 ($273,747) 2.0 1998 (256,247) 2.0 2000 (241,247) 2.0 2001 (241,247) 2.0 2002 (241,247) 2.0 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 ($273,747) 1999 (256,247) 2000 (241,247) 2001 (241,247) 2002 (241,247) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. It is expected that there would be some costs to regional planning commissions associated with the bill's requirements relating to board member training, salary schedules and compensation studies, but those costs are not anticipated to be significant. Source: Agencies: 308 State Auditor's Office 327 Employees Retirement System 304 Comptroller of Public Accounts 601 Department of Transportation 582 Natural Resources Conservation Commission 340 Department on Aging LBB Staff: JK ,TL