LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 3, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 1768
Committee on State Affairs By: Cain
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1768 ( Relating
to the abolition of the Public Utility Commission of Texas and
to the transfer of its powers and duties to the Railroad Commission
of Texas.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB1768-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $2,348,412 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 eliminate the Public Utility Commission (PUC)
and transfer the agency's responsibilities to the Railroad Commission.
It is anticipated that savings would be incurred through elimination
of duplicated administrative overhead and executive positions.
Total savings to General Revenue would be $1,174,581 in FY
1998 and $1,173,831 in FYs 1999 through 2002.
Methodolgy
Cost savings were calculated using the following assumptions:
(1)
The following positions would be eliminated: the three Commissioners,
one Executive Director, and one Director of Administration.
Total savings to General Revenue from elimination of these
positions would be $459,951 in FY 1998 and $459,951 in FYs 1999
through 2002. In addition to these five positions, approximately
16 "indirect" positions would also be eliminated. Costs savings
are included in indirect cost savings.
(2) 50% of PUC's indirect
costs as estimated in the proposed 1998-1999 appropriation for
PUC would be eliminated. Total savings would be $714,630 in
FY 1998, and $713,880 in FYs 1999 through 2002.
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 $1,174,581 21.0
1998 1,173,831 21.0
2000 1,173,831 21.0
2001 1,173,831 21.0
2002 1,173,831 21.0
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 $1,174,581
1999 1,173,831
2000 1,173,831
2001 1,173,831
2002 1,173,831
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: 455 Railroad Commission
LBB Staff: JK ,JD ,BK