LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 22, 2013 TO: Honorable Jim Pitts, Chair, House Committee on Appropriations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB98 by Perry (Relating to zero-based budgeting for certain entities funded by this state.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB98, As Introduced: a negative impact of ($997,394) through the biennium ending August 31, 2015.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 22, 2013
TO: Honorable Jim Pitts, Chair, House Committee on Appropriations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB98 by Perry (Relating to zero-based budgeting for certain entities funded by this state.), As Introduced
TO: Honorable Jim Pitts, Chair, House Committee on Appropriations
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB98 by Perry (Relating to zero-based budgeting for certain entities funded by this state.), As Introduced
Honorable Jim Pitts, Chair, House Committee on Appropriations
Honorable Jim Pitts, Chair, House Committee on Appropriations
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB98 by Perry (Relating to zero-based budgeting for certain entities funded by this state.), As Introduced
HB98 by Perry (Relating to zero-based budgeting for certain entities funded by this state.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB98, As Introduced: a negative impact of ($997,394) through the biennium ending August 31, 2015.
Estimated Two-year Net Impact to General Revenue Related Funds for HB98, As Introduced: a negative impact of ($997,394) through the biennium ending August 31, 2015.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 ($682,578) 2015 ($314,816) 2016 ($314,816) 2017 ($314,816) 2018 ($314,816)
2014 ($682,578)
2015 ($314,816)
2016 ($314,816)
2017 ($314,816)
2018 ($314,816)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2013 2014 ($682,578) 9.0 2015 ($314,816) 4.5 2016 ($314,816) 4.5 2017 ($314,816) 4.5 2018 ($314,816) 4.5
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2013 2014 ($682,578) 9.0 2015 ($314,816) 4.5 2016 ($314,816) 4.5 2017 ($314,816) 4.5 2018 ($314,816) 4.5
2014 ($682,578) 9.0
2015 ($314,816) 4.5
2016 ($314,816) 4.5
2017 ($314,816) 4.5
2018 ($314,816) 4.5
Fiscal Analysis
The bill would require each institution, department and agency of the state that receives an appropriation (from the state) to submit to the Legislative Budget Board (LBB) a zero-based budget plan according to a schedule adopted by the board.
Methodology
The bill would necessitate modifications to LBB information technology systems that are used to receive agency budget requests and to prepare general appropriations bills. Systems would need to be modified to accommodate a description of each activity operated by an agency, three funding levels for each activity (no services, minimal services, and current services), an assessment of each funding level, and a ranking of the relative importance of each activity to the overall goals and purposes of an agency. Modifying LBB technology systems would require 9.0 FTEs in FY 2014. Maintaining systems would require 4.5 FTEs in each subsequent year. Each FTE would cost approximately $70,000 per year. However, one-time costs of approximately $6,000 per FTE would occur in FY 2014. It is assumed that the data fields noted above would be required only for the agency budget submission stage. If the data fields were required for budget recommendation stages or other stages, the LBB would need additional FTEs. Based on input from a selection of state entities, it is estimated that institutions, departments, and agencies could develop and submit zero-based budget plans, as required by this bill, within existing resources.
The bill would necessitate modifications to LBB information technology systems that are used to receive agency budget requests and to prepare general appropriations bills. Systems would need to be modified to accommodate a description of each activity operated by an agency, three funding levels for each activity (no services, minimal services, and current services), an assessment of each funding level, and a ranking of the relative importance of each activity to the overall goals and purposes of an agency.
Modifying LBB technology systems would require 9.0 FTEs in FY 2014. Maintaining systems would require 4.5 FTEs in each subsequent year. Each FTE would cost approximately $70,000 per year. However, one-time costs of approximately $6,000 per FTE would occur in FY 2014.
It is assumed that the data fields noted above would be required only for the agency budget submission stage. If the data fields were required for budget recommendation stages or other stages, the LBB would need additional FTEs.
Based on input from a selection of state entities, it is estimated that institutions, departments, and agencies could develop and submit zero-based budget plans, as required by this bill, within existing resources.
Technology
The bill would require substantive modifications to information technology systems used by LBB staff to produce general appropriation bills.
Local Government Impact
No fiscal impact to local government is anticipated.
Source Agencies: 302 Office of the Attorney General, 307 Secretary of State, 454 Department of Insurance, 476 Racing Commission, 529 Health and Human Services Commission, 582 Commission on Environmental Quality, 601 Department of Transportation
302 Office of the Attorney General, 307 Secretary of State, 454 Department of Insurance, 476 Racing Commission, 529 Health and Human Services Commission, 582 Commission on Environmental Quality, 601 Department of Transportation
LBB Staff: UP, KK, SD, PP
UP, KK, SD, PP