LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 3, 2001
  
  
          TO:  Honorable Rodney Ellis, Chair, Senate Committee on Finance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2071  by Junell (Relating to establishing a billing
               procedure to ensure that each state agency is billed for
               the cost of support services allocated to the agency
               under the statewide cost allocation plan.), As Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2071, As Engrossed:  positive impact of $33,120,000 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                          $16,560,000  *
          *       2003                           16,560,000  *
          *       2004                           16,560,000  *
          *       2005                           16,560,000  *
          *       2006                           16,560,000  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***********************************************************************
*Fiscal    Probable    Probable    Probable    Probable   Change in    *
* Year     Savings/    Savings/    Savings/    Savings/   Number of    *
*        (Cost) from (Cost) from (Cost) from (Cost) from    State      *
*          General      State     Estimated  Appropriat-  Employees    *
*          Revenue     Highway      Other    ed Receipts from FY 2001  *
*            Fund        Fund    Educational     0666                  *
*            0001        0006    and General                           *
*                                   Income                             *
*                                  Account/                            *
*                                    GR-                               *
*                                 Dedicated                            *
*                                    0770                              *
*  2002   $16,560,000                                             0.0  *
*                    $(5,467,500)$(6,033,700)$(1,533,900)              *
*  2003    16,560,000 (5,467,500) (6,033,700) (1,533,900)         0.0  *
*  2004    16,560,000 (5,467,500) (6,033,700) (1,533,900)         0.0  *
*  2005    16,560,000 (5,467,500) (6,033,700) (1,533,900)         0.0  *
*  2006    16,560,000 (5,467,500) (6,033,700) (1,533,900)         0.0  *
***********************************************************************
  
***********************************************************************
*Fiscal    Probable    Probable    Probable    Probable   Change in    *
* Year     Savings/    Savings/    Savings/    Savings/   Number of    *
*        (Cost) from (Cost) from (Cost) from (Cost) from    State      *
*         Game, Fish  Petroleum   Clean Air    Veterans   Employees    *
*         and Water    Storage     Account/      Land    from FY 2001  *
*           Safety       Tank        GR-       Program                 *
*          Account/  Remediation  Dedicated  Administra-               *
*            GR-       Account/      0151     tion Fund                *
*         Dedicated      GR-                     0522                  *
*            0009     Dedicated                                        *
*                        0655                                          *
*  2002    $(617,000)  $(569,100)  $(360,900)  $(311,990)         0.0  *
*  2003     (617,000)   (569,100)   (360,900)   (311,990)         0.0  *
*  2004     (617,000)   (569,100)   (360,900)   (311,990)         0.0  *
*  2005     (617,000)   (569,100)   (360,900)   (311,990)         0.0  *
*  2006     (617,000)   (569,100)   (360,900)   (311,990)         0.0  *
***********************************************************************
  
***********************************************************************
*Fiscal    Probable    Probable    Probable    Probable   Change in    *
* Year     Savings/    Savings/    Savings/    Savings/   Number of    *
*        (Cost) from (Cost) from (Cost) from (Cost) from    State      *
*         Hazardous     Waste      General   Other Funds  Employees    *
*         and Solid   Management   Revenue   (All Other) from FY 2001  *
*           Waste      Account/   Dedicated                            *
*        Remediation     GR-      Acccounts                            *
*            Fee      Dedicated  (All Other)                           *
*          Account/      0549                                          *
*            GR-                                                       *
*         Dedicated                                                    *
*            0550                                                      *
*  2002    $(193,250)  $(177,800)  $(931,950)  $(362,910)         0.0  *
*  2003     (193,250)   (177,800)   (931,950)   (362,910)         0.0  *
*  2004     (193,250)   (177,800)   (931,950)   (362,910)         0.0  *
*  2005     (193,250)   (177,800)   (931,950)   (362,910)         0.0  *
*  2006     (193,250)   (177,800)   (931,950)   (362,910)         0.0  *
***********************************************************************
  
Fiscal Analysis
  
The bill requires state agencies to reimburse the General Revenue Fund
from all fund sources, not just federal funds, for the cost of statewide
support services.  Based on this bill, the Office of the Governor would
be required, as part of their administrative responsibility for the
Statewide Cost Allocation Plan, to establish a billing procedure that
recovers all allocated costs.
  
  
Methodology
  
The bill implements recommendation AFM-3(B) from the Comptroller's
e-Texas: Smaller, Smarter, Faster Government report.

For purposes of this analysis, fiscal year 2000 data was used to estimate
both the savings to the General Revenue Fund, and the costs to other
state funds.  Also, no growth is assumed for  those statewide
administrative costs which are to be recovered through agency billings.
Allocations to those General Revenue-Dedicated accounts that fund natural
resource agencies were made based on the percentage the account
represented of each affected agency's total estimated expenditures out of
General Revenue-Dedicated Accounts in fiscal year 2000.

The savings reflect statewide administrative costs allocations of the
following amounts:  approximately $1.5 million from programs funded by
appropriated receipts; $6.1 million from TxDOT and other agencies funded
by the State Highway Fund and other state funds like the Veteran's Land
Administration Fund No. 522; $6.0 million from higher education
institutions' educational and general income revenues; and, $2.9 million
mostly from General Revenue-Dedicated Accounts that fund natural resource
agencies, including the Game, Fish and Water Safety Account No. 009, and
the Petroleum Storage Tank Remediation Account No. 655.

Because this analysis is based on fiscal year 2000 data, some
reallocation of statewide costs between General Revenue-Dedicated
Accounts, in particular, may occur depending on the spending plan that
is approved by the 77th Legislature for the 2002-03 biennium.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts, 301   Office of
                   the Governor
LBB Staff:         JK, SD, ZS