LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 9, 2001
TO: Honorable David Sibley, Chair, Senate Committee on
Business & Commerce
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB321 by Sibley (Relating to the continuation and
functions of the Texas Department of Economic Development
and the operation, funding, and administration of the
smart jobs fund program.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB321, As Introduced: positive impact of $27,070 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 $13,535 *
* 2003 13,535 *
* 2004 13,535 *
* 2005 13,535 *
* 2006 13,535 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Change in Number of *
* Year Savings/(Cost) from Savings/(Cost) from State Employees from *
* General Revenue Fund Smart Jobs Fund FY 2001 *
* 0001 0891 *
* 2002 $13,535 $134,694 (3.5) *
* 2003 13,535 134,694 (3.5) *
* 2004 13,535 135,694 (3.5) *
* 2005 13,535 134,694 (3.5) *
* 2006 13,535 134,694 (3.5) *
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Fiscal Analysis
The bill would continue the Texas Department of Economic Development
(TDED) for a two year probationary period and would abolish the Texas
Economic Development Corporation. Abolishment of the Corporation would
result in administrative savings of approximately $13,535 in fiscal year
2002 and $13,535 in fiscal year 2003.
The bill would also transfer the Smart Jobs Program from TDED to the
Texas Workforce Commission (TWC). Transfer of this program would result
in a reduction of 3.5 FTEs and an estimated savings of $134,694 in
fiscal year 2002 and $134,694 in fiscal year 2003.
If enacted, the bill would take effect September 1, 2001.
Methodology
The abolishment of the Texas Economic Development Corporation would
result in a savings of approximately $13,535 each fiscal year beginning
in fiscal year 2002.
The TDED currently employs 22 FTEs in the Smart Jobs Fund Program, not
including employees used for indirect administration of the program.
The TWC estimates that it can administer the program for 3.5 less FTEs
since they already have some of the necessary administrative functions,
processes, and employees in place to administer contract administration,
marketing, and grant monitoring. TWC estimates that a reduction in 3.5
FTEs would result in savings of $105,000 in salary and $29,694 in
benefits. Therefore, the total savings resulting from the transfer of
the Smart Jobs Fund Program from TDED to TWC is estimated to be $134,694
each fiscal year beginning in fiscal year 2002.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 116 Sunset Advisory Commission, 529 Health and
Human Services Commission, 320 Texas Workforce
Commission, 480 Department of Economic Development
LBB Staff: JK, JO, ER, RT, HL