TO: | Honorable Jim Pitts, Chair, House Committee On Appropriations |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | HB1805 by Pitts (Relating to the fiscal transparency and accountability of certain entities responsible for public money.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2014 | ($813,227) |
2015 | ($509,277) |
2016 | ($509,277) |
2017 | ($509,277) |
2018 | ($509,277) |
Fiscal Year | Probable Savings/(Cost) from General Revenue Fund 1 |
Change in Number of State Employees from FY 2013 |
---|---|---|
2014 | ($813,227) | 3.0 |
2015 | ($509,277) | 3.0 |
2016 | ($509,277) | 3.0 |
2017 | ($509,277) | 3.0 |
2018 | ($509,277) | 3.0 |
The estimated total cost to comply with the provisions of the bill would be $813,227 in General Revenue in fiscal year 2014 and $509,277 in General Revenue in subsequent fiscal years.
The Bond Review Board (BRB) estimates that it would need to review an additional 100 to 200 conduits and 4,250 transactions per fiscal year to comply with the bill. The agency would be required to submit information to the Office of the Attorney General (OAG) prior to OAG approval of local security transactions; to produce an annual Local Securities Report and online statistics report; and include tax-supported debt per capita statistics for more than 4,500 local government entities. The BRB indicates a need to hire 3.0 additional full-time equivalent positions (FTEs) - two Financial Analyst III and an Accountant I - to handle the increase in transactions reviewed and any backlog necessary to compile the reports in a timely manner. The BRB estimates the costs associated with these additional FTEs would be approximately $234,881 in each fiscal year for salary, benefits and other operating costs. The agency estimates additional costs for IT services, software and the development of a geographical information system (GIS) to calculate debt per capita statistics to be $338,950 in fiscal year 2014 and $35,000 in subsequent years.
Under the provisions of the bill, the Texas Education Agency (TEA) may contract for average construction costs information use. The agency estimates cost of $239,369 per fiscal year based on a per license fee of $194 for a software product such as RSMeans Building Construction Cost Data Online for 1,234 school districts and open-enrollment charter schools. The agency anticipates that the state may be able to negotiate a consolidated license.
Multiple agencies including the Office of the Attorney General (OAG), the Comptroller of Public Accounts (CPA), and several institutions of higher education indicate that any costs associated with the bill could be absorbed within each agency’s existing resources. The Texas Higher Education Coordinating Board (THECB) and the University of Texas System (UT) estimate that there would be a minimal cost associated with implementing the provisions of the bill.
The bill would require each junior college district to report building construction costs to the Texas Higher Education Coordinating Board (THECB) to determine the average cost per square foot, adjusted for inflation for the region it is located and average cost per student. THECB in consultation with the districts shall determine the format and reporting frequency. Dallas County Community College District indicated initial costs to produce the report and post on its website, however, for this analysis it is assumed implementing the provisions of the bill could be absorbed within current resources.
The bill would require political subdivisions to report financial information on an Internet website. Texas Association of Counties reported that for larger counties this could be absorbed within existing resources, but noted that costs for this could be significant for subdivisions that don’t currently maintain websites. Costs to establish a website are estimated between $5,000 and $65,000, with annual maintenance costs between $500 and $10,000, which may be significant for smaller subdivisions. For a subdivision that opts to host and maintain its own website, startup costs range from $15,000 to $30,000 with annual costs between $40,000 and $110,000.
The bill would also require a county assessor-collector to maintain an internet website. Costs to establish a website are estimated between $5,000 and $65,000, with annual maintenance costs between $500 and $10,000, which may be significant for smaller counties. For a county that opts to host and maintain its own website, startup costs range from $15,000 to $30,000 with annual costs between $40,000 and $110,000.
Source Agencies: | 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 307 Secretary of State, 352 Bond Review Board, 701 Central Education Agency, 710 Texas A&M University System Administrative and General Offices, 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
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LBB Staff: | UP, JI, JJO, AH, KKR
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