TO: | Honorable Kip Averitt, Chair, Senate Committee on Natural Resources |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB725 by Estes (Relating to the sunset review of certain river authorities.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2010 | $0 |
2011 | $0 |
2012 | $0 |
2013 | $0 |
2014 | $0 |
2015 | $0 |
Fiscal Year | Probable Savings/(Cost) from Other Funds |
Probable Revenue Gain/(Loss) from Appropriated Receipts 666 |
---|---|---|
2010 | ($198,569) | $198,569 |
2011 | ($196,569) | $196,569 |
2012 | ($198,560) | $198,560 |
2013 | ($196,569) | $196,569 |
2014 | ($200,169) | $200,169 |
2015 | ($197,369) | $197,369 |
The requirement for the Sunset Commission to review 10 river and water authorities would result in costs to the Commission of between $196,569 and $200,169 per fiscal year. These costs are related to three additional staff for each biennium, and other costs related to conducting the reviews and issuing recommendations such as travel and report production expenses. These costs would be paid for by the authorities under review.
The Sunset Commission would also incur production costs to print and distribute reports containing the recommendations on each authority under review.
Staff, travel, and production costs are estimated based on historical costs related to similar-sized reviews.
The costs to the river authorities for reimbursing the Sunset Advisory Commission is equivalent to the revenue gain to the state shown in the above tables.
In addition to the cost of reimbursing the commission for its expenses in conducting the review, the affected authorities report that they would incur costs related to their staff time and materials to provide the commission with what is necessary to conduct the review.
For example, the Sabine River Authority, based on estimated amount of time expected to devote to the review (50 hours of management time, 250 hours of staff time) and materials, assumes additional costs of $12,250. The Canadian River Municipal Water Authority assumes staff time and materials would cost approximately $165,000. Assuming staff time and materials similar to that used for a financial or management audit, the Lower Neches Valley Authority anticipates costs of $6,100 above the costs of the review.
The Lower Colorado River Authority did not report on estimated costs of staff time and materials, but assumed a potential loss in bond ratings as a result of the possibility an authority would be abolished.
While the Brazos River Authority did not provide a dollar estimate, the authority anticipates the costs of pulling staff from regular responsibilities would be costly.
Source Agencies: | 116 Sunset Advisory Commission, 582 Commission on Environmental Quality
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LBB Staff: | JOB, MS, DB, SD
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