LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

March 30, 2003

TO:	Honorable David Swinford, Chair, House Committee on Government Reform
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB3049 by Cook, Robby (Relating to the consolidation of certain state agencies having general governmental functions, including functions regarding information resources, purchasing, and building and space acquisition and management.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB3049, As Introduced: a positive impact of $2,378,846 through the biennium ending August 31, 2005.

The bill amends Chapters 2054, 2151, and 2152 of the Government Code and repeals Sections 2054.004, 2054.005, Subchapter B of 2054, and 2151.051(b) of the Government Code to consolidate the functions of the Texas Building and Procurement Commission (TBPC) and the Texas Department of Information Resources (DIR) including information resources, purchasing, and building and space acquisition and management.  The bill would create and transfer powers and duties of the TBPC and DIR to the State Administrative Services Agency (SASA).  TBPC and DIR would be abolished on the date of the first meeting of SASA.  The Act would take effect September 1, 2003. 

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004	$1,189,423
2005	$1,189,423
2006	$1,189,423
2007	$1,189,423
2008	$1,189,423

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings from GENERAL REVENUE FUND 1	Probable (Cost) from GENERAL REVENUE FUND 1
2004	$1,189,423	$0
2005	$1,189,423	$0
2006	$1,189,423	$0
2007	$1,189,423	$0
2008	$1,189,423	$0

Fiscal Analysis

The consolidated agency would achieve General Revenue cost reductions by streamlining duplicative services and by elimination and/or consolidation of overhead costs in the indirect administration strategies. 

Methodology

The fiscal year 2003 base reconciliations for both TBPC and DIR were used to develop this fiscal note.  Both agencies have three indirect strategies (Central Administration, Information Resources, and Other Support Services).  For fiscal year 2003, TBPC’s General Revenue Funds for indirect administration strategies totaled $4,687,008 and DIR’s General Revenue Funds for indirect administration strategies totaled $750,355.  These amounts were reduced by 12.5% totaling $4,757,693. A twenty-five percent cost savings was applied to this amount for a cost savings of $1,189,423 per fiscal year 2004 through 2005 (TBPC savings of $1,025,283 and DIR savings of $164,140). 

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:	116 Sunset Advisory Commission, 303 Building and Procurement Commission, 304 Comptroller of Public Accounts, 313 Department of Information Resources
LBB Staff:	JK, JO, GO, MS, BL