LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 26, 2001
TO: Honorable Bill Ratliff, Lieutenant Governor
Honorable James E. "Pete" Laney, Speaker of the House
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1458 by Duncan (relating to the management of state
agency and local government electronic projects,
equipment, and contracts, to the purchase and use of
certain advanced technological equipment, and to the use
of outside personnel by the comptroller of public
accounts.), Conference Committee Report
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1458, Conference Committee Report: positive impact of *
* $221,686,578 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 $83,065,514 *
* 2003 138,621,064 *
* 2004 181,830,000 *
* 2005 181,810,000 *
* 2006 181,830,000 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable Change in Number of *
* Year Gain/(Loss) from Savings/(Cost) from State Employees from *
* General Revenue Fund General Revenue Fund FY 2001 *
* 0001 0001 *
* 2002 $129,756,000 $(46,690,486) 8.0 *
* 2003 182,436,000 (43,814,936) 8.0 *
* 2004 182,436,000 (606,000) 6.0 *
* 2005 182,436,000 (626,000) 6.0 *
* 2006 182,436,000 (606,000) 6.0 *
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Technology Impact
Technology costs for the Department of Information Resources (DIR) are as
follows:
* FY 2002 $20,000
* FY 2003 $0
* FY 2004 $0
* FY 2005 $20,000
* FY 2006 $0
Technology costs for the Comptroller of Public Accounts (CPA) would total
$2,522,000 for the 2002-03 biennium for 300 wireless modem-type devices,
the audit database, hardware and software costs, conversion costs,
license costs, and outside assistance. This includes annual modem and
system maintenance costs totaling $303,250 would begin in FY 2003, and
two additional scanners would need to be purchased in both FY 2005 and
FY 2006.
Fiscal Analysis
The bill would implement AFM5 from the CPA's E-Texas report. To enhance
the efficiency of audits and enforcement activities, the bill would
require the CPA to acquire and maintain wireless communication equipment,
and develop, implement and maintain an advanced audit database system.
(E-Texas: AFM5)
The bill would also fully or partially implement the following
recommendations from the CPA's E-Texas report: EG1, EG3, EG5, EG6, and
GP4.
The bill would:
* Establish an electronic government Program Management Office (PMO) to
guide, promote and facilitate the implementation of selected electronic
government projects. (E-Texas: EG1)
* Require the PMO, in coordination with Texas Department of Economic
Development, Secretary of State, Texas Natural Resources Conservation
Commission, Texas Department of Transportation, Department of Licensing
and Regulation, the CPA, and other agencies, to develop and implement a
plan for the creation of an electronic government project to provide new
businesses in this state a single source for information and permitting.
(E-Texas: EG3)
* Require a study of what would be needed to put the activities of
existing grant programs online.
* Require the establishment of the Texas Online grant program enabling
cities, counties and school districts to provide government services
through the Texas Online portal. (E-Texas: EG6)
* Require examination of state reporting requirements for counties and
municipalities. (E-Texas: GP4)
* Develop functional specifications and make preparations for a
statewide electronic data clearinghouse. (E-Texas: EG5)
Methodology
Regarding the CPA's efficiency of audits and enforcement activities:
* (AFM5) In its estimate regarding efficiency of audits and enforcement
activities, the CPA assumes that it would use the new authority to
contract for audit resources sufficient to allow audit coverage of 1
percent of taxpayers. Including technology costs, administrative costs
for the CPA would total $24,369,000 for the 2002-03 biennium. The CPA
would incur costs of $1,243,000 for each year of the biennium to contract
for a Special Audit Unit, composed of 13 FTE auditors, and $9,392,000
for each year of the biennium for 100 FTE contract auditors. An
additional $288,000 in contract assistance would be necessary each year
of the biennium to support implementation of the new technology. The
projected increase in revenue collections with full implementation is
estimated at $129.7 million for FY 2002, and $182.4 million in each year
thereafter. The $27.4 million cost to implement this program is included
in the Senate version of Senate Bill 1. The Comptroller's office has
indicated that it will increase the 2002-03 revenue estimate by $312.1
million when this program is implemented.
Regarding all other aspects of the bill:
* (EG1) DIR estimates that the PMO would require $928,210 for
professional services in FY 2002 and $956,410 in FY 2003. After FY 2003,
the funding should come from a percentage of each project budget. In
addition, implementation would require an additional six FTEs estimated
to be $500,000, benefits included, annually. The CPA estimates costs to
participating agencies in FY 2004-06 to be $531,000 per year.
* (EG3) According to DIR, the cost for One-stop Service would be
$500,000 for professional services: $150,000 to study the existing
common permitting application and information required by the licensing
and regulation agencies that may require information for someone starting
a new business; and $350,000 for integration into the Texas Online
Portal and development of agency and online web forms.
* (EG6) The CPA estimates that implementation of the TexasOnline Grant
Program would cost $59,000,000 to General Revenue for the FY 2002-03
biennium. This funding would enable approximately 700 cities, counties,
and school districts in strategic investment areas to provide selected
government services online.
* A study of what would be necessary to put the activities of existing
grant programs online would require one FTE at a cost of approximately
$70,000 a year, including benefits, and an additional $5,000 a year for
operating expenses. There would be an additional $2,500 increase in FY
2006 for computer upgrade.
* (GP4) According to the CPA's E-Texas report and DIR, compiling a list
of ways to streamline and reduce reporting requirements on cities and
counties would require DIR to employ one analyst, at a salary of $68,750,
including benefits, with a budget of $50,000. DIR estimates costs of
$241,526 in FY 2002-03 to conduct the local government reporting study.
* (EG5) There would be no significant fiscal impact associated with the
development of functional specifications and preparations for a
statewide electronic data clearing house.
Local Government Impact
There could be cost savings to local governments who use electronic
procurement.
Source Agencies: 313 Department of Information Resources
LBB Staff: JK, RB, SK