Honorable Eddie Lucio, Jr., Chair, Senate Committee on Intergovernmental Relations
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB1673 by Lucio (Relating to natural disaster housing recovery.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1673, As Introduced: a negative impact of ($2,699,164) through the biennium ending August 31, 2019.
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
2018
($1,358,552)
2019
($1,340,612)
2020
($1,340,612)
2021
($1,340,612)
2022
($1,340,612)
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Change in Number of State Employees from FY 2017
2018
($1,358,552)
13.0
2019
($1,340,612)
13.0
2020
($1,340,612)
13.0
2021
($1,340,612)
13.0
2022
($1,340,612)
13.0
Fiscal Analysis
The bill would amend the Government Code relating to natural disaster housing recovery. The bill would designate the General Land Office (GLO) as the state agency responsible for receiving and administering federal and state funds appropriated for long-term natural disaster recovery. The bill would require GLO to collaborate with the Texas Department of Emergency Management and the Federal Emergency Management Agency to secure reimbursement for housing needs in areas affected by natural disasters. Additionally, the bill would require GLO to maintain a staff and administrative support to carry out the duties related to long-term natural disaster recovery. The bill would authorize the Governor to designate an agency other than GLO to be responsible for long-term natural disaster recovery.
The bill would require the Hazard Reduction and Recovery Center at Texas A&M University to review and certify local housing recovery plans submitted by units of local government. The bill would establish criteria for approving the local housing recovery plans and would establish duties and responsibilities regarding plans that would be submitted to GLO and the Governor for approval.
The bill would take effect September 1, 2017.
Methodology
GLO currently administers federal funds from the Community Development Block Grants for Disaster Recovery (CDBG-DR). However, these funds are appropriated to states on a disaster by disaster basis and can only be used for affected areas by a specific disaster. Accordingly, this analysis assumes that CDBG-DR funds would not be available to permanently fund and staff the division required by the bill. This analysis assumes that General Revenue funding would be necessary for this purpose.
Based on information provided by GLO, an additional 13.0 FTEs would be needed to establish a new division to handle long-term natural disaster recovery. The following FTEs would be necessary: Director I (1.0 FTEs, salary $93,406), Manager III (2.0 FTEs, individual salary $77,862), Program Specialist VI (4.0 FTEs, individual salary $72,789), Program Specialist VII (4.0 FTEs, individual salary $83,298), and Administrative Assistant IV (2.0 FTEs, individual salary $42,511). Total salary and benefits for the new FTEs would total $1,309,503 each fiscal year. Other operating expenses, including travel, would total $49,049 in fiscal year 2018 and would continue in each subsequent year at a reduced amount of $31,109.
The Office of the Governor, the Department of Insurance, and the Texas A&M University System Administration have indicated the provisions of the bill could be implemented with existing resources.
Local Government Impact
According to the Texas Municipal League, if a municipality chooses to develop a local housing recovery plan under the provisions of the bill, there could be costs; however, the fiscal impact is not anticipated to be significant.
Source Agencies:
300 Trusteed Programs Within the Office of the Governor, 305 General Land Office and Veterans' Land Board, 454 Department of Insurance, 710 Texas A&M University System Administrative and General Offices