LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 29, 2001
  
  
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1340  by Ellis, Rodney (Relating to the creation of a
               division to study transferring to private contractors
               certain state agency personal computing equipment and
               the responsibility for computer services.), As
               Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1340, As Introduced:  negative impact of $(766,276) 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                           $(668,776)  *
          *       2003                             (97,500)  *
          *       2004                                    0  *
          *       2005                                    0  *
          *       2006                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                               $(668,776) *
         *      2003                                 (97,500) *
         *      2004                                        0 *
         *      2005                                        0 *
         *      2006                                        0 *
         *****************************************************
  
Technology Impact
  
None
  
  
Fiscal Analysis
  
The bill would require the Department of Information Resources to create
a seat management division to conduct a study and make recommendations.
The Department would be required to select 10 to 12 state agencies to
participate in a pilot study. Each agency will be required to study the
cost of all personal computers and related systems used by the agency,
including direct and indirect costs.
  
  
Methodology
  
The Department of Information Resources estimates a cost of $668,776 in
fiscal year 2002. This cost includes  engaging contractors for 12
agencies at a cost of $48,000 per agency and an additional cost of
$92,776 for consulting services. Ongoing costs in subsequent years would
include professional services, estimated by the Department of
Information Resources to be approximately $97,500 a year.
  
  
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