LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 22, 2013 TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB142 by West (Relating to zero-based budgeting for state agencies as a part of the sunset review process.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB142, As Introduced: a negative impact of ($940,000) through the biennium ending August 31, 2015. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 22, 2013
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB142 by West (Relating to zero-based budgeting for state agencies as a part of the sunset review process.), As Introduced
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB142 by West (Relating to zero-based budgeting for state agencies as a part of the sunset review process.), As Introduced
Honorable Tommy Williams, Chair, Senate Committee on Finance
Honorable Tommy Williams, Chair, Senate Committee on Finance
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB142 by West (Relating to zero-based budgeting for state agencies as a part of the sunset review process.), As Introduced
SB142 by West (Relating to zero-based budgeting for state agencies as a part of the sunset review process.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB142, As Introduced: a negative impact of ($940,000) through the biennium ending August 31, 2015. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB142, As Introduced: a negative impact of ($940,000) through the biennium ending August 31, 2015.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2014 ($470,000) 2015 ($470,000) 2016 ($470,000) 2017 ($470,000) 2018 ($470,000)
2014 ($470,000)
2015 ($470,000)
2016 ($470,000)
2017 ($470,000)
2018 ($470,000)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2011 2014 ($470,000) 10.0 2015 ($470,000) 10.0 2016 ($470,000) 10.0 2017 ($470,000) 10.0 2018 ($470,000) 10.0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2011 2014 ($470,000) 10.0 2015 ($470,000) 10.0 2016 ($470,000) 10.0 2017 ($470,000) 10.0 2018 ($470,000) 10.0
2014 ($470,000) 10.0
2015 ($470,000) 10.0
2016 ($470,000) 10.0
2017 ($470,000) 10.0
2018 ($470,000) 10.0
Fiscal Analysis
The bill would require the director of the Legislative Budget Board (LBB) to prepare and present to the Sunset Commission and to the Governor, a zero-based budget and performance review for each agency under Sunset review. The LBB's review must contain detailed information relating to an agency's responsibilities, the legal authority for each of the agency's activities and an evaluation of the effectiveness and efficiency of the agency's policies, management, fiscal affairs, and operations in relation to each activity. In addition, for each activity, the LBB would be required to: recommend whether the activity should continue; recommend funding at minimum and current service levels; develop a prioritization of activities in terms of relative importance to the overall goals and purpose of the agency at current service levels; and, recommend whether funding should continue. The bill would require the Sunset Commission to include in its report on each state agency under Sunset review, the recommendations provided by the Legislative Budget Board as well as its evaluation of the LBB's recommendations on funding the agency's activities. The bill would require the Governor or the Governor's representative to consider the zero-based budget information contained in the Sunset report for each agency under Sunset review during the agency's budget hearing. The bill would become effective immediately upon a two-thirds vote of each house. Otherwise, the bill would be effective September 1, 2013.
The bill would require the director of the Legislative Budget Board (LBB) to prepare and present to the Sunset Commission and to the Governor, a zero-based budget and performance review for each agency under Sunset review. The LBB's review must contain detailed information relating to an agency's responsibilities, the legal authority for each of the agency's activities and an evaluation of the effectiveness and efficiency of the agency's policies, management, fiscal affairs, and operations in relation to each activity. In addition, for each activity, the LBB would be required to: recommend whether the activity should continue; recommend funding at minimum and current service levels; develop a prioritization of activities in terms of relative importance to the overall goals and purpose of the agency at current service levels; and, recommend whether funding should continue.
The bill would require the Sunset Commission to include in its report on each state agency under Sunset review, the recommendations provided by the Legislative Budget Board as well as its evaluation of the LBB's recommendations on funding the agency's activities.
The bill would require the Governor or the Governor's representative to consider the zero-based budget information contained in the Sunset report for each agency under Sunset review during the agency's budget hearing.
The bill would become effective immediately upon a two-thirds vote of each house. Otherwise, the bill would be effective September 1, 2013.
Methodology
The analysis assumes 25 reviews each biennium based on the Sunset Commission's average number of reviews per biennium; 284 work hours per review and 10 additional analyst positions. The LBB would benefit from some of the information already collected by the Sunset Advisory Commission but due to the bill's requirements and the timing of preparing the state budget, the bulk of the work required by the bill's provisions is assumed to be independent of what is covered under a sunset review.
The analysis assumes 25 reviews each biennium based on the Sunset Commission's average number of reviews per biennium; 284 work hours per review and 10 additional analyst positions. The LBB would benefit from some of the information already collected by the Sunset Advisory Commission but due to the bill's requirements and the timing of preparing the state budget, the bulk of the work required by the bill's provisions is assumed to be independent of what is covered under a sunset review.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 116 Sunset Advisory Commission
116 Sunset Advisory Commission
LBB Staff: UP, KK, SD
UP, KK, SD