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