LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 8, 2001
TO: Honorable Steven Wolens, Chair, House Committee on State
Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1622 by Isett (Relating to the creation of a statewide
contract management policy.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1622, As Introduced: positive impact of $19,670,000 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 Net Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 19,670,000 *
* 2004 19,670,000 *
* 2005 19,670,000 *
* 2006 19,670,000 *
****************************************************
All Funds, Five-Year Impact:
***************************************************************************
*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Savings/(Cost) *
* from General from All from Federal from Other Funds *
* Revenue Fund General Revenue Funds - Federal *
* 0001 Dedicated 0555 *
* Accounts *
* 2002 $0 $0 $0 $0 *
* 2003 19,670,000 2,240,000 9,870,000 3,220,000 *
* 2004 19,670,000 2,240,000 9,870,000 3,220,000 *
* 2005 19,670,000 2,240,000 9,870,000 3,220,000 *
* 2006 19,670,000 2,240,000 9,870,000 3,220,000 *
***************************************************************************
Technology Impact
None.
Fiscal Analysis
This bill would require the Attorney General, the General Services
Commission, and the State Auditor to develop a contract management guide
for use by state agencies, and they would have to develop and implement
a statewide contract management curriculum for contract managers. This
bill would take effect September 1, 2001 and the training for contract
managers would take effect September 1, 2002.
Methodology
According to the Comptroller of Public Account's e-Texas report, the
State of Texas contracts for $14 billion worth of goods and services
annually. Assuming that it takes 12 months to implement the statewide
contract management policy and training contract managers would not take
effect until September 1, 2002, fiscal year 2003 would be the earliest
savings could be generated. Also assuming that contract managers would
save 0.25 percent on Texas contracts due to improved contract management
skills, this would equate to savings of $35 million annually. These
saving would be across every state agency and could potentially impact
every fund. For the purpose of this estimate, it is assumed that each
fund would have the same percentage of the savings as it is a percentage
of the 2000-01 biennial budget.
According to the Office of the Attorney General, General Services
Commission, and the State Auditor's Office, the agencies have estimated
there would be cost for the administration of the training program,
which includes developing the contract management guide, teaching the
classes, and monitoring training attendance. However, these costs could
be absorbed within each of agency's existing resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 308 State Auditor's Office, 116 Sunset Advisory
Commission, 304 Comptroller of Public Accounts, 303
General Services Commission, 301 Office of the
Governor, 302 Office of the Attorney General
LBB Staff: JK, RB, GS