LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 25, 2001
  
  
          TO:  Honorable Rodney Ellis, Chair, Senate Committee on Finance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1486  by Haywood (Relating to establishing a billing
               procedure to ensure that each state agency is billed for
               the cost of support services allocated to the agency
               under the statewide cost allocation plan.), As
               Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1486, As Introduced:  positive impact of $33,120,000 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.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Net Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                          $16,560,000  *
          *       2003                           16,560,000  *
          *       2004                           16,560,000  *
          *       2005                           16,560,000  *
          *       2006                           16,560,000  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal      Probable        Probable        Probable        Probable     *
* Year    Savings/(Cost)  Savings/(Cost)  Savings/(Cost)  Savings/(Cost)  *
*          from General     from State    from Estimated       from       *
*          Revenue Fund    Highway Fund       Other        Appropriated   *
*              0001            0006      Educational and     Receipts     *
*                                         General Income       0666       *
*                                            Account/                     *
*                                          GR-Dedicated                   *
*                                              0770                       *
*  2002       $16,560,000    $(5,467,500)    $(6,033,700)    $(1,533,900) *
*  2003        16,560,000     (5,467,500)     (6,033,700)     (1,533,900) *
*  2004        16,560,000     (5,467,500)     (6,033,700)     (1,533,900) *
*  2005        16,560,000     (5,467,500)     (6,033,700)     (1,533,900) *
*  2006        16,560,000     (5,467,500)     (6,033,700)     (1,533,900) *
***************************************************************************
  
***************************************************************************
*Fiscal      Probable        Probable        Probable        Probable     *
* Year    Savings/(Cost)  Savings/(Cost)  Savings/(Cost)  Savings/(Cost)  *
*        from Game, Fish  from Petroleum  from Clean Air  from Veterans   *
*           and Water      Storage Tank      Account/      Land Program   *
*        Safety Account/   Remediation     GR-Dedicated   Administration  *
*          GR-Dedicated      Account/          0151            Fund       *
*              0009        GR-Dedicated                        0522       *
*                              0655                                       *
*  2002        $(617,000)      $(569,100)      $(360,900)      $(311,990) *
*  2003         (617,000)       (569,100)       (360,900)       (311,990) *
*  2004         (617,000)       (569,100)       (360,900)       (311,990) *
*  2005         (617,000)       (569,100)       (360,900)       (311,990) *
*  2006         (617,000)       (569,100)       (360,900)       (311,990) *
***************************************************************************
  
***************************************************************************
*Fiscal      Probable        Probable        Probable        Probable     *
* Year    Savings/(Cost)  Savings/(Cost)  Savings/(Cost)  Savings/(Cost)  *
*         from Hazardous    from Waste    from  General     from Other    *
*        and Solid Waste    Management       Revenue          Funds       *
*        Remediation Fee     Account/       Dedicated      (All Other)    *
*            Account/      GR-Dedicated   Acccounts (All                  *
*          GR-Dedicated        0549           Other)                      *
*              0550                                                       *
*  2002        $(193,250)      $(177,800)      $(931,950)      $(362,910) *
*  2003         (193,250)       (177,800)       (931,950)       (362,910) *
*  2004         (193,250)       (177,800)       (931,950)       (362,910) *
*  2005         (193,250)       (177,800)       (931,950)       (362,910) *
*  2006         (193,250)       (177,800)       (931,950)       (362,910) *
***************************************************************************
  
Fiscal Analysis
  
The bill requires state agencies to reimburse the General Revenue Fund
from all fund sources, not just federal funds, for the cost of statewide
support services.  Based on this bill, the Office of the Governor would
be required, as part of their administrative responsibility for the
Statewide Cost Allocation Plan, to establish a billing procedure that
recovers all allocated costs.
  
  
Methodology
  
The bill implements recommendation AFM-3(B) from the Comptroller's
e-Texas: Smaller, Smarter, Faster Government report.

For purposes of this analysis, fiscal year 2000 data was used to estimate
both the savings to the General Revenue Fund, and the costs to other
state funds.  Also, no growth is assumed for  those statewide
administrative costs which are to be recovered through agency billings.
Allocations to those General Revenue-Dedicated accounts that fund natural
resource agencies were made based on the percentage the account
represented of each affected agency's total estimated expenditures out of
General Revenue-Dedicated Accounts in fiscal year 2000.

The savings reflect statewide administrative costs allocations of the
following amounts:  approximately $1.5 million from programs funded by
appropriated receipts; $6.1 million from TxDOT and other agencies funded
by the State Highway Fund and other state funds like the Veteran's Land
Administration Fund No. 522; $6.0 million from higher education
institutions' educational and general income revenues; and, $2.9 million
mostly from General Revenue-Dedicated Accounts that fund natural resource
agencies, including the Game, Fish and Water Safety Account No. 009, and
the Petroleum Storage Tank Remediation Account No. 655.

Because this analysis is based on fiscal year 2000 data, some
reallocation of statewide costs between General Revenue-Dedicated
Accounts, in particular, may occur depending on the spending plan that
is approved by the 77th Legislature for the 2002-03 biennium.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts, 301   Office of
                   the Governor
LBB Staff:         JK, SD, ZS