| TO: | Honorable David Swinford, Chair, House Committee on Government Reform |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB1155 by Giddings (Relating to travel services affecting public junior colleges and school districts.), As Introduced |
This bill would authorize community/junior college districts to participate in the Building and Procurement Commission's contracts for travel agency services and other travel services.
An officer or employee of a school district would be authorized to use the commission's contract for travel services for obtaining reduced airline fares and reduced travel agent fees.
The Comptroller indicates a potential savings of $13.3 million annually based on an estimated 10% savings on projected expenditures of $133 million.
According to the Texas Education Agency's (TEA) expenditure data from PEIMS (school year 2000-01), school districts spent $124 million on travel. TEA estimates that 4% of district travel expenditures is for airfare and a total of 16% is for lodging and airfare services.
If the same percentages of air travel and lodging expenditures are applied to the $133 million, a 10% annual savings for these expenditures would result in $532,000 for air travel and $2,128,000 for air travel and lodging combined.
Savings to public junior colleges would depend on current purchasing practices.
| Source Agencies: | 303 Building And Procurement Commission, 304 Comptroller Of Public Accounts, 701 Central Education Agency, 781 Higher Education Coordinating Board
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| LBB Staff: | JK, GO, PF, DSB
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