| TO: | Honorable Rodney Ellis, Chair, Senate Committee on Government Organization |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB1318 by Swinford (Relating to workforce planning requirements for state agencies and the compensation, accountability, and employment of certain state employees.), As Engrossed |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2004 | $0 |
| 2005 | $6,152,400 |
| 2006 | $9,079,200 |
| 2007 | $13,291,200 |
| 2008 | $17,556,600 |
| Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
Probable Savings/(Cost) from GR DEDICATED ACCOUNTS 994 |
Probable Savings/(Cost) from FEDERAL FUNDS 555 |
Probable Savings/(Cost) from OTHER SPECIAL STATE FUNDS 998 |
|---|---|---|---|---|
| 2004 | $0 | $0 | $0 | $0 |
| 2005 | $6,152,400 | $2,556,000 | $7,612,800 | $107,400 |
| 2006 | $9,079,200 | $4,557,000 | $10,526,400 | $162,000 |
| 2007 | $13,291,200 | $7,016,400 | $15,324,000 | $3,913,200 |
| 2008 | $17,556,600 | $9,054,600 | $20,245,800 | $7,129,200 |
| Fiscal Year | Change in Number of State Employees from FY 2003 |
|---|---|
| 2004 | 0.0 |
| 2005 | (365.0) |
| 2006 | (538.0) |
| 2007 | (882.0) |
| 2008 | (1,206.0) |
The bill would allow agencies to make salary bonus payments of up to $5,000 under certain circumstances when hiring new employees or to retain current employees. Because the language is permissive, agencies would not require additional funds to make use of the provision.
The bill would require the State Auditor's Office to perform workforce planning tasks for the agencies.
The bill would impose limitations on the allowable management to staff ratio at state agencies, equal to 1:8 by the end of fiscal year 2004, 1:9 by the end of fiscal year 2005, 1:10 by the end of fiscal year 2006 and 1:11 afterwards. Agencies would have to reduce management staff to meet the ratios.
Managers are included if they spend one-half or more of their time managing. If they are eliminated, employees will have to assume the workload carried by the former manager(s) and other personnel will have to assume additional management responsibilities. Remaining managers will do less work since they are managing more. It is assumed that 60 percent of the salaries of affected managers could be saved by an agency without unduly affecting the overall quantity of work performed. Estimates of management FTE reductions required are made for agencies which exceed the targeted ratio for each of the ratio targets. Savings in a given year would be 60 percent of salaries of affected managers at an agency, with additional savings in employee benefits.
Salaries and benefits amounts and FTE levels for affected personnel were provided by the Comptrollers Office, though a 40 percent reduction was made to the amounts as per the above analysis. Since the ratios are not mandatory until the end of the various Fiscal Years, savings are shown in the following years.
Savings are estimated from 2003 appropriated levels and may not be fully realized under the funding amounts for the 2004-05 biennium currently under consideration by the Legislature.
| Source Agencies: | 304 Comptroller of Public Accounts, 308 State Auditor's Office, 320 Texas Workforce Commission, 601 Department of Transportation, 362 Texas Lottery Commission, 405 Department of Public Safety, 501 Department of Health, 582 Commission on Environmental Quality, 655 Department of Mental Health and Mental Retardation, 696 Department of Criminal Justice
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| LBB Staff: | JK, JB, JO, GO, WM, MS
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