LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
 
April 6, 2003

TO:
Honorable David Swinford, Chair, House Committee on Government Reform
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB2505 by Swinford (Relating to the review of the administration of university systems and identification of potential administrative and organizational reforms.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB2505, As Introduced: a negative impact of ($600,000) through the biennium ending August 31, 2005.

The bill would direct the Coordinating Board to review the organization and operations of each university system office to identify appropriate organizational structures for systems offices, describe current existing structures, and identify areas of duplicated services.  The Board would be required to submit a report by November 1, 2004 recommending reorganization and consolidation of functions and identifying cost savings, including those from recommended personnel reductions.




Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004 ($600,000)
2005 $0
2006 $0
2007 $0
2008 $0




Fiscal Year Probable (Cost) from
GENERAL REVENUE FUND
1
2004 ($600,000)
2005 $0
2006 $0
2007 $0
2008 $0

Fiscal Analysis

According to the Coordinating Board, they do not have the resources and expertise, including auditing expertise to ensure completion of the reviews by November 1, 2004.  The Coordinating Board advises they would contract for Management Advisory Services with the State Auditor's Office for most of the analytic work.   which would require approximately 5,000 hours - for a contract cost of $600,000. 


Methodology

The Coordinating Board would incur contract costs to the State Auditor's Office.  According to the SAO, the project would require approximately 5,000 hours - for a contract cost of $600,000.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
781 Higher Education Coordinating Board
LBB Staff:
JK, GO, PF, DSB