| TO: | Honorable Bill Callegari, Chair, House Committee on Government Reform |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | SB1449 by Ellis (Relating to the human resources employee-to-staff ratio for state agencies.), As Engrossed |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | $141,055 |
| 2009 | $188,074 |
| 2010 | $188,074 |
| 2011 | $188,074 |
| 2012 | $188,074 |
| Fiscal Year | Probable Savings from GENERAL REVENUE FUND 1 |
Probable Savings from GR DEDICATED ACCOUNTS 994 |
Probable Savings from FEDERAL FUNDS 555 |
Probable Savings from OTHER FUNDS 997 |
|---|---|---|---|---|
| 2008 | $141,055 | $20,231 | $36,144 | $40,449 |
| 2009 | $188,074 | $26,974 | $48,192 | $53,398 |
| 2010 | $188,074 | $26,974 | $48,192 | $53,398 |
| 2011 | $188,074 | $26,974 | $48,192 | $53,398 |
| 2012 | $188,074 | $26,974 | $48,192 | $53,398 |
| Fiscal Year | Change in Number of State Employees from FY 2007 |
|---|---|
| 2008 | (7.1) |
| 2009 | (7.1) |
| 2010 | (7.1) |
| 2011 | (7.1) |
| 2012 | (7.1) |
The bill would require agencies in the executive branch of government with fewer than 500 full-time employees to adjust the agency's human resources employee to staff ratio to not more than one human resources employee for every 85 staff. This requirement is currently in effect for agencies with 500 or more full-time equivalent employees. The bill would require agencies to implement the reduction using the best practices used by large agencies that currently comply with the 1 to 85 ratio.
The bill would repeal the requirement for the State Council on Competitive Government to determine the cost-effectiveness of consolidating the human resources functions of or contracting with private entities to perform the human resources functions of state agencies that employ fewer than 500 full-time equivalent employees. The bill would repeal the requirement for the State Council on Competitive Government to contract with private entities for certain human resource functions if the Council determines that it is cost effective.
The bill is effective September 1, 2007. The bill would require agencies with fewer than 500 full-time equivalent employees to comply with the human resource employee-to-staff ratio requirements not later than January 1, 2008.
There are 66 agencies in the executive branch of government with fewer than 500 full-time equivalents.
Forty-two agencies have 85 FTEs or less. Those agencies would be required to reduce their current human resources staff to less than 1 FTE. Agencies with less than 85 FTEs could have a fraction of an FTE provide human resource or use another process. Agencies may assign human resources duties to a current staff member whose duties include various administrative duties other than human resources. Agencies may pursue another option to provide human resources support to its workforce such as contracting with another agency or private vendor for those services or consolidating with other small agencies and sharing human resource staff. It is assumed that there would be no difference in the cost of providing human resources under the current model or the requirements of the bill.
Twenty-four agencies have between 85-499 FTEs. Fourteen of those agencies have exceeded the 1 to 85 ratio by a fraction of an FTE or more. Combined, the 14 agencies are over the 1 to 85 ratio by 7.14 FTEs. It is assumed that agencies would reduce staff to meet the ratio. The average annual salary for a human resource professional is $44,347. The savings for reducing 7.14 FTEs in 2008 is $141,055 and 2009 is $188,074 in General Revenue.
| Source Agencies: | 303 Building and Procurement Commission, 308 State Auditor's Office
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| LBB Staff: | JOB, MN, JI, DH
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