LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
 
May 28, 2009

TO:
Honorable Joe Straus, Speaker of the House, House of Representatives
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB3552 by Bonnen (Relating to the evaluation of certain regional planning commissions.), As Passed 2nd House



Estimated Two-year Net Impact to General Revenue Related Funds for HB3552, As Passed 2nd House: an impact of $0 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.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0




Fiscal Year Probable Revenue Gain from
Appropriated Receipts
666 		Probable Savings/(Cost) from
Other
2010 $690,900 ($690,900)
2011 $112,500 ($112,500)
2012 $0 $0
2013 $0 $0
2014 $0 $0

Fiscal Analysis

The bill would require the State Auditor's Office (SAO) to conduct a financial-related compliance audit of: (1) a regional planning commission (commission) created under Chapter 391, Local Government Code; and (2) the Lower Colorado River Authority (authority).

The audit of the commission is to be completed prior to June 1, 2010; the audit of the authority is to be completed by January 1, 2011. The bill would require the commission and the authority to reimburse the SAO for the cost of the audits.  


Methodology

It is assumed that the audit of the commission would be of the Houston-Galveston Council which is comprised of numerous local governments and would require 4,000 hours to complete. Based on the SAO's current billing rate of $90 per hour, it is estimated that the cost of the audit would be $398,400, inclusive of $38,400 travel costs.

The audit of the authority would require 4,500 hours to complete. Based on the SAO's current billing rate of $90 per hour, it is estimated that the cost of the audit would be $292,500.


Local Government Impact

The commission and the authority would be required to reimburse the SAO for the cost of the audits.


Source Agencies:
308 State Auditor's Office
LBB Staff:
JOB, KJG, SZ, MS