Honorable Joan Huffman, Chair, Senate Committee on State Affairs
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB3123 by Price (Relating to governmental entities subject to the sunset review process.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB3123, As Engrossed: an impact of $0 through the biennium ending August 31, 2017.
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
2016
$0
2017
$0
2018
$0
2019
$0
2020
$0
Fiscal Year
Probable Savings/(Cost) from Appropriated Receipts 666
Probable Revenue Gain/(Loss) from Appropriated Receipts 666
Change in Number of State Employees from FY 2015
2016
$403,200
($403,200)
(3.4)
2017
$44,300
($44,300)
(3.4)
2018
$0
$0
0.0
2019
$0
$0
0.0
2020
($79,740)
$79,740
0.7
Fiscal Analysis
The bill would amend various Codes and Acts relating to governmental entities subject to the sunset review.
The bill would change previously established sunset dates for certain entities. The bill would change the sunset date for the Texas Facilities Commission from September 1, 2015 to September 1, 2021; the Juvenile Justice Board and Department (TJJD) from September 1, 2017 to September 1, 2021; and the Lone Star Rail District (LSRD) from September 1, 2017 to September 1, 2021.
The bill would repeal the sunset dates for the Sulphur River Basin Authority (SRBA) and the Capital Metropolitan Transportation Authority (CMTA).
The bill would take effect immediately upon receiving a two-thirds majority vote in both houses; otherwise the bill would take effect September 1, 2015.
Methodology
Based on information provided by the Sunset Advisory Commission (SAC), it is assumed that costs of $11,075 would be realized per analyst assigned to a review team for each month required to conduct a review. This amount includes the costs for salaries, benefits, and other operating costs necessary for staff to conduct these reviews. Travel costs are reflected separately below based on the project location.
Based on information provided by the SAC, it is assumed that Full-Time-Equivalent positions would not be needed in fiscal years 2016-17 due to the repeal of the SRBA and CMTA sunset requirements and due to the rescheduling of the LSRD.
Based on information provided by the SAC, the following is assumed for projects for which the SAC would be reimbursed for performing reviews and realize a savings from not performing reviews. The costs and savings as well as the revenue gains and losses from payments to the SAC as a reimbursement for the special reviews are reflected as Appropriated Receipts in the table above.
1) A savings would be realized from two analyst positions not conducting a four month review of the SRBA due to the bill repealing the sunset review offset by a corresponding revenue loss. Including travel costs of $4,500, total costs for this project were estimated to be $84,240 in fiscal year 2016 and $8,860 in fiscal year 2017.
2) A savings would be realized from four analyst positions not conducting a six month review of the CMTA due to the bill repealing the sunset review offset by a corresponding revenue loss. Total costs for this project were estimated to be $239,220 in fiscal year 2016 and $26,580 in fiscal year 2017.
3) A savings would be realized from two analyst positions not conducting a four month review of the LSRD due to the bill rescheduling the sunset review offset by a corresponding revenue loss. Total costs for this project were estimated to be $79,740 in fiscal year 2016 and $8,860 in fiscal year 2017.
4) Costs would be realized from two analyst positions conducting a four month review of the LSRD due to the bill rescheduling the sunset review offset by a corresponding revenue gain. Total costs for this project would be $79,740 in fiscal year 2020 and $8,860 in fiscal year 2021. Costs in the table above only consider costs in fiscal year 2020.
Based on information provided by the SAC, this analysis assumes there would be no fiscal impact to the state for changing the previously established sunset date for the TFC and TJJD.
Local Government Impact
This analysis assumes the SRBA would realize a savings of $84,240 in fiscal year 2016 and $8,860 in fiscal year 2017 due to the repealing of the River Authority's sunset review.Similarly, it is assumed that CMTA would realize a savings of $239,220 in fiscal year 2016 and $26,580 in fiscal year 2017 due to the repealing of the Transportation Authority's sunset review.Based on the rescheduling of the LSRD sunset review, it is assumed that the LSRD would realize a savings in fiscal years 2016-17 which would be offset by like costs in fiscal years 2020-21.
Source Agencies:
116 Sunset Advisory Commission, 303 Facilities Commission, 644 Juvenile Justice Department, 469 Credit Union Department