LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
February 18, 1999
TO: Honorable Florence Shapiro, Chair, Senate Committee on
State Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB355 by Harris (Relating to the continuation and
functions of the Texas Incentive and Productivity
Commission.), As Introduced
**************************************************************************
* Two-year Net Impact to General Revenue Related Funds for SB355, As *
* Introduced: negative impact of $(460,544) 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. *
* *
* Currently, agencies participating in the Texas Incentive and *
* Productivity Commission's (TIPC) savings programs must transfer a *
* portion of the money saved to TIPC to fund the Commission's *
* operations. Another portion of the money saved must be returned to *
* the fund from which it was originally appropriated. This bill *
* would eliminate these transfer provisions, allowing the agencies to *
* retain all the savings. *
* *
* The bill would create a new recognition award of $50 for approved *
* suggestions on which savings cannot be quantified. No more than *
* 150 recognition awards could be granted in any fiscal year. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(230,272) *
* 2001 (230,272) *
* 2002 (230,272) *
* 2003 (230,272) *
* 2004 (230,272) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2000 $(230,272) *
* 2001 (230,272) *
* 2002 (230,272) *
* 2003 (230,272) *
* 2004 (230,272) *
*****************************************************
Technology Impact
None.
Fiscal Analysis
Senate Bill 355 eliminates the savings transfer provision that currently
funds TIPC's operations. For each year of the 2000-01 biennium, the
agency's proposed appropriation is $222,872, to be paid with the transfer
of a portion of the money saved by agencies participating in TIPC's
programs. If the transfer provision is eliminated, the agency would need
to be funded by another source. The bill would also give the agency the
authority to provide awards of $50 to participants whose suggestions do
not have quantifiable savings. This provision would cost a maximum of
$7,500 a year if the agency awards the maximum number of awards.
In the past, agencies participating in TIPC's programs returned a portion
of the money saved to the state treasury, specifically to the fund from
which the money originated. The bill would eliminate this provision,
allowing agencies to retain the full amount of money saved through the
State Employee Incentive Program.
Methodology
This analysis assumes that the TIPC would be funded by General Revenue,
at a cost of $222,872 each year for the agency's operations and a
maximum of $7,500 each year for the awards program. While this analysis
assumes the method of finance would be General Revenue, the Legislature
could choose to fund the agency with an alternate method of finance.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, SD, PH, SC