LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 12, 2001
TO: Honorable Florence Shapiro, Chair, Senate Committee on
State Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB441 by Fraser (Relating to the administration of
certain state agencies.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB441, As Introduced: positive impact of $3,800,000 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:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $1,900,000 *
* 2003 1,900,000 *
* 2004 1,900,000 *
* 2005 1,900,000 *
* 2006 1,900,000 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable *
* Year Savings/(Cost) from Savings/(Cost) from Savings/(Cost) from *
* General Revenue Fund General Revenue Other Funds *
* 0001 Dedicated Accounts 0997 *
* (ERS and CPA only) *
* 0994 *
* 2002 $1,900,000 $64,000 $176,000 *
* 2003 1,900,000 64,000 176,000 *
* 2004 1,900,000 64,000 176,000 *
* 2005 1,900,000 64,000 176,000 *
* 2006 1,900,000 64,000 176,000 *
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Fiscal Analysis
The bill would add a new section to Subchapter C, Chapter 2162 of the
Government Code to require the State Council on Competitive Government
(CCG) to review administrative functions of small state agencies (those
with less than 100 FTEs) to determine the cost-effectiveness of acquiring
information technology, budgeting, accounting, payroll, purchasing,
courier services, mail services, reproduction or printing services, and
training through a group or interagency contract. If the CCG determines
that a service may be acquired in a more cost-effective manner through a
group contract or an interagency agreement, the council can require the
agency to implement the contract or agreement.
Methodology
According to the Comptroller's office, small agencies spent an estimated
$21.2 million in General Revenue Funds, General Revenue-Dedicated Funds,
and Other Funds in fiscal year 2000 on the administrative functions
mentioned above. If the program identifies a 10% savings, an estimated
$2.1 million in savings per year is possible. This estimate does not
address whether there would be a reduction in revenue for agencies that
collect fees to cover the costs of their operations.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 308 State Auditor's Office, 304 Comptroller of
Public Accounts, 303 General Services Commission,
301 Office of the Governor
LBB Staff: JK, RB, MF, JC