LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                            February 27, 2001
  
  
          TO:  Honorable Jim Solis, Chair, House Committee on Economic
               Development
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB932  by Solis, Jim (Relating to requiring a report from
               the comptroller about state and local economic
               development activities and projects.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB932, As Introduced:  negative impact of $(1,726,000) 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.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                           $(863,000)  *
          *       2003                            (863,000)  *
          *       2004                            (863,000)  *
          *       2005                            (863,000)  *
          *       2006                            (863,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal    Probable Savings/(Cost) from     Change in Number of State     *
* Year         General Revenue Fund           Employees from FY 2001      *
*                      0001                                               *
*  2002                        $(863,000)                             8.0 *
*  2003                         (863,000)                             8.0 *
*  2004                         (863,000)                             8.0 *
*  2005                         (863,000)                             8.0 *
*  2006                         (863,000)                             8.0 *
***************************************************************************
  
Fiscal Analysis
  
The bill would amend Chapter 403 of the Government Code to require the
Comptroller to provide a detailed report on state and local economic
development activities before each regular session of the legislature to
the legislature and the governor. The report would cover the six-year
period ending the last day of the biennium during which the report was
submitted.
  
  
Methodology
  
The Comptroller's office estimates they will need an additional eight
Economist FTEs split between the Revenue Estimating and Research
Divisions for a total of approximately $863,000 each fiscal year from
general revenue if the bill is implemented. According to the
Comptroller's office, the estimate is based on similar studies these
divisions have completed in the past and current studies the
Comptroller's office is working on. Included in the amounts estimated by
the Comptroller's office is approximately $500,000 each fiscal year for
consultant fees associated with information gathering for the study.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   480   Department of Economic Development, 320   Texas
                   Workforce Commission, 304   Comptroller of Public
                   Accounts
LBB Staff:         JK, JO, JC, DB