Honorable Tan Parker, Chair, House Committee on Investments & Financial Services
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB3920 by Guerra (Relating to financing arrangements between political subdivisions and private entities for the implementation of pay for success initiatives.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3920, As Introduced: a negative impact of ($242,500) 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
($117,750)
2017
($124,750)
2018
($124,750)
2019
($124,750)
2020
($124,750)
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2015
2016
($117,750)
1.0
2017
($124,750)
1.0
2018
($124,750)
1.0
2019
($124,750)
1.0
2020
($124,750)
1.0
Fiscal Analysis
The bill would amend the Local Government Code to permit the governing body of a political subdivision to enter into a private financing arrangement for a program designed and intended to address a problem facing the political subdivision. The bill would require the Bond Review Board to establish procedures for entering into arrangements.
Methodology
The Bond Review Board estimates that one full-time equivalent (FTE) would be required to implement the provisions of the bill (1.0 Financial Analyst III x $80,000). Including benefits, other operating expenses, and training expenses, BRB estimates the total fiscal impact of implementing the provisions of the bill would be $242,500 in the 2016-17 biennium.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.