LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                             February 3, 2001
  
  
          TO:  Honorable Jim Solis, Chair, House Committee on Economic
               Development
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB32  by McClendon (Relating to the composition of the
               governing board of the Texas Department of Economic
               Development.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB32, As Introduced:  positive impact of $34,600 through the          *
*  biennium ending August 31, 2003.                                      *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
The bill would amend Sections 481.004 (A) and (B) to change the governing
board of the Texas Department of Economic Development from nine to five
public members with staggered six year terms expiring February 1 of each
odd-numbered year.
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                              $17,300  *
          *       2003                               17,300  *
          *       2004                               17,300  *
          *       2005                               17,300  *
          *       2006                               17,300  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                                  $17,300 *
         *      2003                                   17,300 *
         *      2004                                   17,300 *
         *      2005                                   17,300 *
         *      2006                                   17,300 *
         *****************************************************
  
Fiscal Analysis
  
The bill would reduce the number of board members of the Texas Department
of Economic Development from nine to five members resulting in reduced
cost associated with board member travel.
  
  
Methodology
  
The Department currently spends an estimated $38,931 per year related to
board member travel and other expenses.  Reducing the number of board
members to five would result in a general revenue savings of $17,300 per
year.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   480   Department of Economic Development
LBB Staff:         JK, JO, RT, ER