LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
 
February 27, 2013

TO:
Honorable José Menéndez, Chair, House Committee On Defense & Veterans' Affairs
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB171 by Alonzo (Relating to the establishment of veterans resource centers at certain institutions of higher education.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB171, As Introduced: a negative impact of ($1,719,476) through the biennium ending August 31, 2015.

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
2014 ($863,147)
2015 ($856,329)
2016 ($856,329)
2017 ($856,329)
2018 ($856,329)




Fiscal Year Probable Savings/(Cost) from
General Revenue Fund
1 		Change in Number of State Employees from FY 2011
2014 ($863,147) 16.0
2015 ($856,329) 16.0
2016 ($856,329) 16.0
2017 ($856,329) 16.0
2018 ($856,329) 16.0

Fiscal Analysis

The bill would amend the Government Code and require the Texas Veterans Commission (TVC) to establish and administer 15 regional veterans' resource centers at various institutions of higher education to provide a centralized location for assistance and information regarding veteran's education. Each institution of higher education with a veteran's resource center would be required to provide office space, office equipment, telephone equipment and service, and internet access, to the center located at that institution.


Methodology

It is assumed that TVC would require 16.0 new FTEs, which include 15 veteran resource counselors and one program manager, to operate the veteran's resource center program at a cost of $622,192 out of the General Revenue Fund in salaries and wages each fiscal year. Benefit costs associated with those positions would total $185,040 out of the General Revenue Fund each fiscal year. In addition, $4,800 out of the General Revenue fund would be needed each fiscal year for operating expenses. Furthermore, travel related expenses of $40,000 out of the General Revenue Fund will be required each fiscal year for staff to attend meetings and training seminars. A one-time cost of $11,115 out of the General Revenue Fund in fiscal year 2014 will be needed for a telephone, desk, and other office equipment for the program manager mentioned above that will be located at the TVC headquarters to oversee the program. On-going operating costs for that position would be $4,297 out of the General Revenue Fund each remaining fiscal year.

Institutions of higher education would enter into a Memorandum of Understanding (MOU) with TVC requiring them to bear the cost of office space, office equipment, telephones, computers and internet access for TVC field staff operating at their locations. It is assumed that any additional costs associated with implementation of the legislation by these entities could be absorbed within existing resources.

The bill would take effect immediately if it receives a vote of two-thirds of all the members elected to each house. Otherwise, the bill would take September 1, 2013.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
403 Veterans Commission, 710 Texas A&M University System Administrative and General Offices, 719 Texas State Technical College System Administration, 720 The University of Texas System Administration, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration
LBB Staff:
UP, KJo, EP, JM, KK