TO: | Honorable Jim Pitts, Chair, House Committee on Appropriations |
FROM: | John S O'Brien, Director, Legislative Budget Board |
IN RE: | HB3665 by Otto (Relating to state fiscal matters related to general government.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2012 | $5,307,072 |
2013 | $2,683,072 |
2014 | $2,758,072 |
2015 | $2,683,072 |
2016 | $2,758,072 |
Fiscal Year | Probable Savings/(Cost) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from Tx Preservation Trust Acc 664 |
Probable Revenue Gain/(Loss) from Telecommunications Revolving - IAC 8125 |
---|---|---|---|---|
2012 | $124,913 | $5,182,159 | $10,089,461 | ($2,550,000) |
2013 | $50,913 | $2,632,159 | $0 | $0 |
2014 | $125,913 | $2,632,159 | $0 | $0 |
2015 | $50,913 | $2,632,159 | $0 | $0 |
2016 | $125,913 | $2,632,159 | $0 | $0 |
Fiscal Year | Change in Number of State Employees from FY 2011 |
---|---|
2012 | (0.5) |
2013 | (0.5) |
2014 | (0.5) |
2015 | (0.5) |
2016 | (0.5) |
The extent to which an agency would use the authority granted in Article 1 of the bill is unknown. Therefore, the impact of these changes is not included in the estimates shown above.
The LBB estimates that implementing the provisions contained in Article 2 of the bill would result in General Revenue gains of $887,471 per year. This estimate is based on leasing 40 percent of the estimated currently available excess parking spaces in the Capitol Complex to individual motorists at a rate of $50 per month and executing a revenue sharing long-term lease with the University of Texas for the use of state garages B and G. Because the exact implementation conditions (number of parking spaces to be leased and the contract least rate to be applied) are unknown, the Comptroller of Public Accounts was unable to provide a certifiable revenue estimate. Changes in the implementation of the program from the assumptions made above will alter projected revenue. For example, if demand is sufficient to support charging a higher monthly lease rate, additional revenues would be generated. The implementation of a program to lease specific parking spaces to individuals would require TFC to hire an additional employee due to the quantity of leases involved. TFC reports an additional employee and related expenses would carry a biennial cost of $127,812, including benefits. TFC could manage the lease of entire parking facilities within existing resources due to the limited number of opportunities for such a program.
This analysis assumes any additional costs related to the provisions of the bill contained in Article 3 could be absorbed within existing agency resources.
The extent to which the provisions contained in Article 4 of the bill would reduce CPA administrative costs cannot be determined until full implementation is achieved in fiscal year 2013. This analysis assumes that any administrative costs incurred from transitioning to electronic pay cards would be offset from savings that would be generated from requiring fewer resources to process paper warrants. Additionally, state agencies would also be expected to see savings as evidenced by other agencies that currently disburse benefits and payments via electronic pay card.
The Secretary of State estimates that implementing the provisions contained in Article 5 of the bill would result in General Revenue savings of $75,000 in each even-numbered year. These savings are assumed in CSHB 1.
The OAG estimates that the administrative costs associated with the implementation of the electronic filing provisions contained in Article 6 of the bill can be absorbed within current resources and that the collection of electronic filing fees would result in an annual revenue gain of $535,054 in General Revenue Funds in each fiscal year beginning in fiscal year 2012. The OAG also estimates that the administrative costs associated with the implementation of comprehensive development agreement fees can be absorbed within current resources and that the collection of fees associated with comprehensive development agreement reviews would result in an annual revenue gain of $1,209,634 in General Revenue Funds in each fiscal year beginning in fiscal year 2012. Because the bill authorizes the OAG to charge and collect a review fee on outside legal counsel invoice reviews only upon request of a party to the contract, the agency estimates that this provision would have no fiscal impact, and does not estimate the collection of related fees.
This analysis assumes the bill’s provisions contained in Article 7 would result in a one-time gain to General Revenue-Dedicated funds of $10,089,461 in fiscal year 2012 from transfer of the agency’s investments managed by the Comptroller through the Safekeeping Trust Company. The value of related Safekeeping Trust assets, as of February 28, 2011, was $10,604,461, offset by anticipated regular distributions of $212,000 into the Preservation Trust Fund during the remainder of fiscal year 2011 and a projected loss of $303,000 from the transition of the investments to cash in preparation for transfer into the Preservation Trust Fund. This analysis assumes no further changes would be made with regard to the fund’s fair market value. This revenue gain is assumed in CSHB 1.
This analysis assumes that, in implementing the provisions contained in Article 8, all direct costs associated with the operation and maintenance of the state cemetery would transfer from the Texas Facilities Commission to the State Preservation Board with no reduction. It is also assumed that the transfer would result in savings related to indirect administrative expenses, estimated to be $114,319 in General Revenue, and 1.5 full-time equivalent positions, per year. These savings are assumed in CSHB 1.
The provisions contained in Article 9 of the bill would transfer existing fund balances from the Department of Information Resources’ (DIR) telecommunications revolving fund to the General Revenue Fund. The estimated unexpended balance in the revolving fund for the fiscal year ending August 31, 2011 is $2,550,000. CSHB 1 appropriates the estimated fund balance to DIR.
Source Agencies: | 303 Facilities Commission, 304 Comptroller of Public Accounts, 307 Secretary of State, 313 Department of Information Resources, 347 Public Finance Authority, 352 Bond Review Board, 808 Historical Commission, 809 Preservation Board
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LBB Staff: | JOB, KK, JI, KY, YD, BTA, JJO, EP
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