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: HB3448 by Gallego (Relating to the continuation and
functions of the General Services Commission and to the
operations of certain other state agencies having
functions transferred from or associated with the
commission, including the Department of Information
Resources, the telecommunications planning and oversight
council, the interagency work group for developing
contracting guidelines, and the State Cemetery
Committee.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3448, As Introduced: positive impact of $47,170,064 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $23,372,282 *
* 2003 23,797,782 *
* 2004 24,215,782 *
* 2005 53,206,282 *
* 2006 53,631,782 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable Change in *
* Year Savings/ Savings/ Revenue Savings/ Number of *
* (Cost) from (Cost) from Gain/(Loss) (Cost) from State *
* General General from All General Employees *
* Revenue Revenue General Revenue from FY 2001 *
* Fund Fund Revenue Dedicated *
* 0001 0001 Fund Accounts *
* 0001 *
* 2002 $(194,718) $23,518,000 $49,000 $0 3.0 *
* 2003 (187,218) 23,936,000 49,000 2,240,000 (10.0) *
* 2004 (187,218) 24,354,000 49,000 2,240,000 (23.0) *
* 2005 (194,718) 53,352,000 49,000 44,840,000 (36.0) *
* 2006 (187,218) 53,770,000 49,000 44,840,000 (49.0) *
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year Federal Funds - Federal Other Funds *
* 0555 *
* 2002 $0 $55,000 *
* 2003 9,870,000 3,275,000 *
* 2004 9,870,000 3,275,000 *
* 2005 47,000,000 3,275,000 *
* 2006 47,000,000 3,275,000 *
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Technology Impact
$7,500 for computers and training in both FY 2002 and FY 2005.
Fiscal Analysis
The bill would continue the General Services Commission (GSC) for 12
years. Several GSC and Department of Information Resources (DIR)
functions would be affected, and new functions would be added to GSC.
Further, several functions currently performed by GSC would be
transferred to DIR. The Bill would also:
* Reduce the size of the GSC from six to five members.
* Establish a new Telecommunications Planning and Oversight Council to
replace the Telecommunications Planning Group, oversee state
telecommunications operations, and designate DIR as the telecommunication
provider for the state and as the state agency responsible for obtaining
telecommunication services.
* Create the State Cemetery Committee and separately appropriate money to
the committee within the appropriations to the GSC.
Methodology
* Reducing the size of the Commission will result in savings of
approximately $3,000 per year due to reduced reimbursable travel
expenses.
* Overseeing the implementation of major resources projects would not
result in any net fiscal impact to the state.
* Transferring Telecommunications from GSC to DIR would require moving
the appropriation of telecommunications funds totaling $19 million for
the biennium and approximately 97 full-time equivalents (FTEs) from the
bill pattern of GSC to that of DIR.
* Development of contract guidelines that state agencies must follow
when procuring goods and services with appropriated funds would require
two additional attorneys within DIR at a cost of $139,218 per year to
General Revenue. Anticipated start-up costs include the purchase of
computers in the first year for a total of $5,000.
* In the Report of the e-Texas Commission, The Comptroller of Public
Accounts (CPA) states that the State of Texas contracts for $14 billion
worth of goods and services annually. Assuming that contract managers
would save 0.25 percent on Texas contracts due to improved contract
management skills, this would equate to $35 million annually starting in
the second year, spread across all funds. 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.
* Development of a systematic review process to identify commercially
available services performed by GSC that might better be performed by
other state agencies or private commercial sources would provide savings
of $0 in the first year, and $314,000 in each year Approximately
$105,000 of this is in General Revenue Funds.
* It is estimated that approximately $3.4 million could be saved using
reverse auctions.
* Savings due to implementation of electronic procurement were $28.58
million in General Revenue; $37.13 million in Federal Funds; and $42.6
million in Dedicated Account Funds per year.
* Savings resulting from reduced emergency leases would be
approximately $500,000 per year. Based on the ratio of General Revenue
funded to non-General revenue funded agencies as used in the fiscal note
to HB834. 89 percent of the savings would be to General Revenue funded
agencies and 11 percent would be to other funds.
* GSC may require one additional FTE to fulfill its responsibility for
the state's surplus property disposal process. Estimated cost for the FTE
is approximately $48,000 per year, including benefits. There would be
additional costs of $2,500 for a computer in the first year and $2,500
for a computer refresher in FY 2005.
* A mandatory program to improve the state's recycling efforts would
result in a gain to General Revenue of $49,000 per year.
Local Government Impact
There could be cost savings to local governments who use electronic
procurement.
Source Agencies: 367 Telecommunications Infrastructure Fund Board,
116 Sunset Advisory Commission, 313 Department of
Information Resources, 306 Texas State Library and
Archives Commission, 720 The University of Texas
System, 480 Department of Economic Development,
304 Comptroller of Public Accounts, 701 Texas
Education Agency, 303 General Services Commission
LBB Staff: JK, RB, MF, SK