LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 28, 2009

TO:	Honorable Veronica Gonzales, Chair, House Committee on Border & Intergovernmental Affairs
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB186 by Alonzo (Relating to the creation of the Bureau for Economic Development and Hispanic Studies.), Committee Report 1st House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for HB186, Committee Report 1st House, Substituted: a negative impact of ($388,089) through the biennium ending August 31, 2011.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010	($203,592)
2011	($184,497)
2012	($184,497)
2013	($184,497)
2014	($184,497)

All Funds, Five-Year Impact:

Fiscal Year	Probable (Cost) from General Revenue Fund 1	Change in Number of State Employees from FY 2009
2010	($203,592)	3.0
2011	($184,497)	3.0
2012	($184,497)	3.0
2013	($184,497)	3.0
2014	($184,497)	3.0

Fiscal Analysis

The bill would create the Bureau for Economic Development and Hispanic Studies (bureau) that would consist of nine appointed members with its main office in Dallas.  The bill would require the bureau to hold at least one meeting each calendar quarter.
 
The bill would require the bureau to develop proposals for maximizing trade between Texas and other countries, undertake research to encourage the analysis of public policies affecting Hispanic citizens, and to conduct studies and develop policy proposals on issues of particular interest and importance to Hispanic citizens. The bill would also require the bureau to serve as a clearinghouse of information for other agencies and organizations, and distribute the results of its studies to appropriate agencies and officials, community organizations, private leaders, and the public.

The bill would be effective September 1, 2009.

Methodology

Subject to availability of funds, the bill would require bureau members be reimbursed for expenses incurred for services on the bureau but would not allow members to receive compensation for their services.  The bill would allow the bureau to employ an executive director and would authorize the executive director to employ necessary personnel.

It is assumed one Director II position at an annual cost of $82,844 (salary and benefits), one Program Specialist III position at an annual cost of $53,493 (salary and benefits), and one Administrative Assistance II position at an annual cost of $33,660 (salary and benefits) would be required to fulfill the duties of the bureau.
 
Initial start-up costs in fiscal year 2010 include $15,000 for office furniture, $3,000 for computers, and $1,095 for telecommunication equipment. Recurring annual operating costs include $12,000 for office space, $1,000 for travel, $900 for consumables, and $600 for telecommunication services.
 
Total cost to General Revenue is estimated at $203,592 in fiscal year 2010 and $184,497 in fiscal year 2011.

Technology

Technology costs are estimated at $3,000 for fiscal year 2010 and include three personal computers at $1,000 each.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

116 Sunset Advisory Commission, 301 Office of the Governor, 720 The University of Texas System Administration

LBB Staff:

JOB, CL, BTA