| TO: | Honorable Rodney Ellis, Chair, Senate Committee on Government Organization |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | SB19 by Ellis, Rodney (Relating to the reorganization of, efficiency in, and other reform measures applying to state government.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2004 | $8,418,323 |
| 2005 | $5,165,524 |
| 2006 | $290,524 |
| 2007 | $290,524 |
| 2008 | $1,915,524 |
| Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
Probable Savings from STATE HIGHWAY FUND 6 |
Probable Revenue Gain from APPROPRIATED RECEIPTS 666 |
|---|---|---|---|---|
| 2004 | $7,850,000 | $568,323 | $483,000 | $597,322 |
| 2005 | $3,250,000 | $1,915,524 | $483,000 | $568,622 |
| 2006 | ($1,625,000) | $1,915,524 | $483,000 | $568,789 |
| 2007 | ($1,625,000) | $1,915,524 | $483,000 | $568,917 |
| 2008 | $0 | $1,915,524 | $483,000 | $569,044 |
| Fiscal Year | Probable (Cost) from APPROPRIATED RECEIPTS 666 |
Probable Revenue Gain from INTERAGENCY CONTRACTS 777 |
Probable (Cost) from INTERAGENCY CONTRACTS 777 |
Probable Savings from CLEAN AIR ACCOUNT 151 |
|---|---|---|---|---|
| 2004 | ($597,322) | $415,087 | ($415,087) | $55,555 |
| 2005 | ($568,622) | $395,171 | ($395,171) | $55,555 |
| 2006 | ($568,789) | $395,260 | ($395,260) | $55,555 |
| 2007 | ($568,917) | $395,348 | ($395,348) | $55,555 |
| 2008 | ($569,044) | $395,437 | ($395,437) | $55,555 |
| Fiscal Year | Probable Savings from USED OIL RECYCLE ACCT 146 |
Probable Savings from HAZARDOUS/WASTE FEE ACCT 549 |
Change in Number of State Employees from FY 2003 |
|---|---|---|---|
| 2004 | $55,555 | $388,890 | 4.0 |
| 2005 | $55,555 | $388,890 | 4.0 |
| 2006 | $55,555 | $388,890 | 4.0 |
| 2007 | $55,555 | $388,890 | 4.0 |
| 2008 | $55,555 | $388,890 | 4.0 |
The bill would amend various budgetary and fiscal management statutes affecting state government and certain regional entities. For the purposes of this fiscal note, only those provisions with a fiscal impact are discussed.
Article 3 would authorize the state auditor to assist the governor in drafting rules for regional planning commissions.
Article 4 states that property distributable in the course of a demutualization, rehabilitation, or related reorganization of an insurance company would be presumed abandoned on the first anniversary of the date the property becomes distributable if, on that date, (1) the last known address of the owner was known to be incorrect or the correspondence with the owner was returned by the post office, and (2) the owner had not communicated with the holder of the property.
Article 11 would abolish the Office of State-Federal Relations (OSFR) and transfer its functions to the Governor's office.
Article 12 would abolish the State Aircraft Pooling Board (Board) and transfer the responsibilities to the Department of Public Safety (DPS). DPS, the Board, and the Texas Public Finance Authority (TPFA), in consultation with the Texas Building and Procurement Commission and the General Land Office, would be required to oversee the transition. The article would require the Texas Building and Procurement Commission, in consultation with DPS, to sell for fair market value all state aircraft and aircraft-related equipment, other than certain aircraft maintenance equipment and a King Air 200 aircraft. The sale proceeds would be used to pay off existing bonds issued for aircraft or related equipment. In addition, the General Land Office, in consultation with TPFA, would be required to sell certain Board facilities. Proceeds would be used to pay off existing bonds. .
Article 13 would create the select committee on prison privatization (committee)and require the committee to prepare a report on prison privatization. The Texas Department of Criminal Justice (TDCJ) would be required to provide the committee with not less than $200,000 from it's budget for the 2004-05 biennium.
Article 15 would require the Higher Education Coordinating Board (Coordinating Board) to review the organization and operations of each university system office.
Article 16 would eliminate a requirement for a local solid waste management plan to include waste reduction goals. The article would also eliminate numerous reports currently required as stand-alone reports, including: used oil recycling, low-emission vehicles and alternative fuels use, and numerous reports on waste prevention, management, and disposal.
Article 18 would make changes to the organization, board membership, and functions of certain state agencies and transfer certain functions to other state agencies. The bill would create the Legislative Information Services Board, abolish the Texas Legislative Council and transfer certain functions to the new board. The bill would abolish the office of state auditor and the legislative audit committee and transfer certain audit functions to the Legislative Budget Board. The bill would create the Performance Review Commission and abolish the Sunset Advisory Commission and transfer certain functions to the new commission.
According to the State Auditor's Office the new requirements related to regional planning commissions could be accomplished within existing resources.
The state receives revenue from its role as custodian of unclaimed property. The change in dates that property is considered abandoned would result in an acceleration of revenue collected from abandonded property as a result of a insurance company demutualization. The annual estimated general revenue gain is $3,250,000 for fiscal years 2004 and 2005. Annual estimated revenue losses for fiscal years 2006 and 2007 are estimated to be ($1625,000). However, future demutualizations are expected to partially offset these amounts.
The provision transferring OSFR functions to the Governor's office would result in the reduction of one staff position associated with indirect administration of the Washington, D.C. office. Elimination of salary, benefits, and operating costs associated with this position would result in reduced expenditures of $56,035.
The transfer of the Aircraft Pooling Board (Board) functions to the Department of Public Safety (DPS) would result in additional costs for DPS. DPS estimates the costs to provide the required level of services would be $1,012,409 for fiscal year 2004 and $963,833 for fiscal year 2005. These amounts include costs for an additional 15 employees or ftes. The Conference Committee Report on House Bill 1, 78th Legislature, Regular Session, recommended that 59 percent of the Board costs be paid from appropriated receipts and 41 percent be paid from interagency contracts. It is assumed that the costs incurred by DPS for the transferred functions would be funded in a similar manner. In addition, DPS estimates it would realize an annual savings of $483,000 to the highway fund for the elimination of rent and other related expenses currently paid to the Board.
The Building and Procurement Commission estimates that the sale of Board aircraft, aircraft related equipment and facilities would result in a general revenue gain of approximately $7 million. According to DPS, $2.2 million in bond debt exists for the King Air 200 and $200,000 for two fuel trucks which would be transferred to DPS resulting in a net general revenue gain of $4.6 million. The amount of the general revenue gain would be reduced by any additional outstanding bond debt on other Board assets.
According to the Building and Procurement Commission, the sale of Board facilities at Bergstrom and Mueller and the payoff of existing bond debt would not provide for any revenue gain to the general revenue fund.
This notes assumes that the costs of the transition team to oversee the transition of functions and assets from the Board to DPS would be accomplished within existing resources of the responsible agencies.
TDCJ would transfer $200,00 from their budget to the committee to fund the privatization study through the biennium ending August 31, 2005. As a result no fiscal impact to the State is anticipated for this provision.
Requiring the Coordinating Board to review the organization and operations of each of the university system offices would cost an estimated $337,792 in fiscal year 2004 for two additional staff, travel, and some funds for contracting with outside consultants.
The reduction in the number and frequency of required reports prepared by the Commission on Environmental Quality is expected to reduce costs for employee time and printing. The proposed article is projected to result in a total cost savings to the agency of $500,000 per year by reducing 10 full-time staff positions and miscellaneous printing expenses.
The consolidation of functions resulting from the reorganization of the functions of the Texas Legislative Council, the Sunset Advisory Commission and the State Auditor's Office would result in cost savings. General revenue savings are estimated to be $850,080 in fiscal year 2004 and $1,859,489 each year thereafter.
| Source Agencies: | 103 Legislative Council, 301 Office of the Governor, 303 Building and Procurement Commission, 304 Comptroller of Public Accounts, 405 Department of Public Safety, 454 Department of Insurance, 582 Commission on Environmental Quality, 781 Higher Education Coordinating Board, 802 Parks and Wildlife Department
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| LBB Staff: | JK, CT, DLBe
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