| TO: | Honorable David Swinford, Chair, House Committee on Government Reform |
| 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 Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2004 | $6,965,250 |
| 2005 | $9,960,500 |
| 2006 | $12,778,500 |
| 2007 | $15,121,000 |
| 2008 | $15,121,000 |
| Fiscal Year | Probable Revenue Gain/(Loss) fromGENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) fromGR DEDICATED ACCOUNTS 994 |
Probable Revenue Gain/(Loss) fromFEDERAL FUNDS 555 |
|---|---|---|---|
| 2004 | $6,965,250 | $2,278,250 | $3,808,500 |
| 2005 | $9,960,500 | $3,126,000 | $5,559,750 |
| 2006 | $12,778,500 | $3,192,250 | $5,784,500 |
| 2007 | $15,121,000 | $4,974,000 | $9,011,250 |
| 2008 | $15,121,000 | $4,974,000 | $9,011,250 |
The bill would allow agencies to make 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 impose new training requirements on agencies for their managerial staff. Three agencies reported additional administrative costs for this provision.
The bill would impose limitations on the allowable management to staff ratio at state agencies, equal to 1:8 in Fiscal Year (FY) 2004, 1:9 in FY 2005, 1:10 in FY 2006 and 1:11 afterwards. The current average ratio is approximately 1:13, but some agencies are below 1:8 and would have to reduce management staff to meet this requirement, others would have to reduce management staff to meet the other ratios.
Managers generally do not spend all of their time managing. Employees will have to do the work that the former managers used to do and someone will have to do the managing. The managers who are left will do less work since they are managing more. Employees capable of performing similar work could be paid somewhat less since they are not managers, perhaps as much as 20% less. So it is assumed that 20% of the managers' salaries could be saved by the agency without affecting the overall quantity of work performed. Manager salaries are estimated to be 25% greater than median salaries at the agencies. 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 the management FTE reductions at an agency times the average manager salaries at the agency times 20 percent. Reductions in employee benefits are included.
Savings are estimated from 2003 appropriated levels and may not be fully realized under the initial General Revenue amounts currently under consideration by the Legislature.
| Source Agencies: | 304 Comptroller Of Public Accounts, 308 State Auditor's Office, 320 Texas Workforce Commission, 362 Texas Lottery Commission, 405 Department Of Public Safety, 501 Department Of Health, 582 Commission On Environmental Quality, 601 Department Of Transportation, 655 Department Of Mental Health And Mental Retardation, 696 Department Of Criminal Justice
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| LBB Staff: | JK, JO, GO, WM, MS
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