LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 12, 2001
TO: Honorable Florence Shapiro, Chair, Senate Committee on
State Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB428 by Lucio (Relating to the creation of an
electronic grants management system.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB428, As Introduced: negative impact of $(1,950,000) 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. *
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General Revenue-Related Funds, Five-Year Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(975,000) *
* 2003 (975,000) *
* 2004 (80,000) *
* 2005 (80,000) *
* 2006 (92,500) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 2001 *
* 0001 *
* 2002 $(975,000) 1.0 *
* 2003 (975,000) 1.0 *
* 2004 (80,000) 1.0 *
* 2005 (80,000) 1.0 *
* 2006 (92,500) 1.0 *
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Technology Impact
FY 2002 - $900,00 for design and implementation of system and computer
for one FTE;
FY 2003 - $900,000 for completion of design and implementation of
system;
FY 2005 - $2,500 computer upgrade.
Fiscal Analysis
The bill would require Department of Information Services to conduct a
study to determine the costs and benefits of establishing a statewide
electronic grants management system. The bill then requires the agency
to design and implement a statewide electronic grants management system
based on the findings of the study.
Methodology
Pennsylvania Department of Education placed a grants application process
on line in 1998. The project took two years at a cost of $2.5 million to
cover the contractor and consultant fees, systems development and
computer coding. It is estimated that a similar program would cost
approximately $900,000 per year for two years and require one FTE at a
cost of approximately $70,000 a year which includes benefits and an
additional $5,000 a year for operating expenses. The FTE cost would
increase in FY 2004 and again in FY 2006 for salary increases. There
would be an additional $2,500 increase in FY 2006 for computer upgrade.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 313 Department of Information Resources, 304
Comptroller of Public Accounts
LBB Staff: JK, RB, SK