LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 13, 1999 TO: Honorable Tom Ramsay, Chair, House Committee on County Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: SB 204 by Carona (Relating to permitting county officers and employees to receive reduced airline fares while engaged in official county business.), Committee Report 2nd House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB204, Committee Report 2nd House, Substituted: positive impact * * of $0 through the biennium ending August 31, 2001. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $0 * * 2001 0 * * 2002 0 * * 2003 0 * * 2004 0 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Revenue Probable Change in Number of * * Year Gain/(Loss) from New Savings/(Cost) from State Employees from * * - GR New - GR FY 1999 * * Dedicated--County Dedicated--County * * Airline Fares Airline Fares * * 2000 $62,974 $(62,974) 1.5 * * 2001 47,894 (47,894) 1.5 * * 2002 47,894 (47,894) 1.5 * * 2003 47,894 (47,894) 1.5 * * 2004 47,894 (47,894) 1.5 * ************************************************************************** Technology Impact Additional FTEs would require computer equipment and software. These costs would be offset by fees charged to counties. Fiscal Analysis All costs incurred by the General Services Commission would be offset by fees charged to counties for use of the Commission's airline contracts. Methodology County auditors in ten counties were contacted to obtain an annual amount spent by each county on airfares. Based on the data obtained, the estimated average annual airfare expenditures by counties for official county business is $219,510. Assuming that 50% of these trips are to destinations for which the state has contracted fares, and that the contract discount would equal 50% of the regular coach fare, total savings achieved would approach $54,878 per county. Local Government Impact Counties would incur the cost of fees for the General Services Commission's services, however these costs would be substantially offset by an estimated annual savings of $54,878 per county. Source Agencies: LBB Staff: JK, TL