Texas Pension Review Board

Transcription

1 LEGISLATIVE APPROPRIATIONS REQUEST For Fiscal Years 214 and 215 Submitted to the Governor's Office of Budget, Planning and Policy and the Legislative Budget Office by Texas Pension Review Board Board Member Dates of Term Hometown RICHARD E. MCELREATH, Chair (27-213) Amarillo PAUL A. BRADEN, Vice Chair (29-215) El Paso J. ROBERT MASSENGALE (28-211) Lubbock NORMAN W. PARRISH (27-213) The Woodlands ANDREW W. CABLE (29-213) Wimberley LESLIE GRECO-POOL ( ) Trophy Club WAYNE R. ROBERTS (29-215) Houston REPRESENTATIVE VICKI TRUITT (28-211) Southlake SENATOR JOHN H. WHITMIRE (21-25) Houston Date of Submission: August 9, 212

2 Table of Contents Legislative Appropriations Request Fiscal Years Administrator s Statement Organizational Chart Certificate of Dual Submission Summary of Request Summary of Base Request by Strategy 2.A. Page 1 Summary of Base Request by Method of Finance 2.B. Page 1 Summary of Base Request by Objects of Expense 2.C. Page 1 Summary of Base Request Objective Outcomes 2.D. Page 1 Summary of Exceptional Items Request 2.E. Page 1 Summary of Total Request by Strategy 2.F. Page 1 Summary of Total Request Objective Outcomes 2.G. Page 1 Strategy Request Strategy 1: Retirement System Reviews 3.A. Page 1 Strategy 2: Technical Assistance and Education 3.A. Page 4 Exceptional Item Request Exceptional Items Request Schedule 4.A. Page 1 Exceptional Items Strategy Allocation Schedule 4.B. Page 1 Exceptional Items Strategy Request 4.C. Page 1 Capital Budget Schedules Capital Budget Project Schedule N/A Capital Budget Allocation to Strategies N/A Supporting Schedules: General Revenue & General Revenue Dedicated Baseline Report Historically Underutilized Business Supporting Schedule 6.A. Page Estimated Revenue Collections Supporting Schedule 6.E. Page 1 1 Percent Biennial Base Reduction Options Schedule 6.I. Page 1 Administrative and Support Cost: Indirect Administrative and Support Cost 7.A. Page 1 Direct Administrative and Support Cost 7.B. Page 1

3 ADMINISTRATOR'S STATEMENT 8/9/212 8:3:56AM 338 Pension Review Board Texas Pension Review Board Member Name/Term and Hometown RICHARD E.MCELREATH, Chair (27-213) Amarillo PAUL A.BRADEN, Vice Chair (29-215) El Paso ANDREW W.CABLE (29-213) Wimberley LESLIE GRECO-POOL ( ) Trophy Club J.ROBERT MASSENGALE (28-217) Lubbock NORMAN W.PARRISH (27-213) The Woodlands WAYNE R.ROBERTS (29-215) Houston REPRESENTATIVE VICKI TRUITT (28-211) Southlake SENATOR JOHN H. WHITMIRE (21-25) Houston The State Pension Review Board (PRB) was established by the 66th Legislature effective September 1, 1979 as the oversight body for Texas state and local public retirement systems. There are about 2.3 million members in some 36 public retirement systems registered with the PRB with assets of nearly $2 billion dollars. The duties of the PRB have not changed since 1979, with the agency mandated to monitor the public pension system, investigate issues affecting actuarial soundness, provide technical assistance, offer policy and legislative advice, hold educational training seminars, and produce actuarial impact statements for pending legislation. In the last two years, the agency has undertaken several projects to ensure that it fulfills its duties. The PRB has prepared several reports on federal issues impacting public retirement systems, including the impact of Dodd-Frank, the SEC s Pay-to-Play and Municipal Advisor rules, the recent GASB proposals, and the Public Employee Pension Transparency Act. The agency has completed two research papers, part of a series of white papers on important public pension topics. The first provides an in-depth look at defined benefit, defined contribution, and alternative retirement plans. The second examines the notion of financial economics and its role in public pension plans. The agency is currently working with the Comptroller of Public Accounts on a joint partnership to enhance the amount of public pension information available online. By utilizing existing technology via the Comptroller s website, the PRB will upload significant amount of financial and actuarial information online. As part of the educational outreach program, the agency provides electronic weekly news clips service to its constituents and other interested parties to expedite tracking and compiling of state, national, and local pension-related issues in a timely manner. Though the agency has existed since 1979, it did not see an increase in budget or staffing until fiscal year 26. Through its limited number of employees, the PRB tries to increase staff expertise to provide more complex analysis of plans correlating to the demographic shifts in the state and investment complexity of pension funds. As issues involving public pensions grow more complex, the PRB staff provides a high quality service to the legislature, the governor, public retirement systems, their administrators, trustees, and members. In light of the aforementioned work of the agency, the Board requests five exceptional items in this year s appropriations request. The first request is for additional funds to host quarterly regional seminars throughout the state. One of the agency s core duties is education, and as recommended in the Sunset Staff Report, the agency should develop and provide training that is accessible to all public retirement systems. Funding would provide for one regional seminar Page 1 of 3

4 ADMINISTRATOR'S STATEMENT 8/9/212 8:3:56AM 338 Pension Review Board each quarter, at different locations across Texas. The agency would also make the presentations from the regional seminars available online through our website. Topics will include: asset allocation, actuarial training, fiduciary duties, developing investment policies, due diligence and creating request for proposals, plan design, federal and state law updates, GASB and pension accounting, and retiree preparation. The second request is for rider language authorizing the agency to collect funds for pension training conferences, seminars, and meetings. In recent years limited funding for annual and regional training sessions has become a concern. The board recently authorized sponsorship of portions of the seminar such as paying for a coffee/refreshment break with minor promotional recognition (acknowledgment in meeting materials). This policy is similar to that adopted by many professional organizations such as the National Association of State Budget Officers (NASBO). Although providing some relief, this policy is not as flexible as authorization to receive gifts or grants to assist in putting on the training meetings. Therefore, we request legislative authority to accept gifts and grants specifically for training purposes. In addition, authority is requested to expend unused portions of any gifts and grants donated for one conference for use at other similar training activities. This language is similar to that provided to other agencies through rider authorization, e.g., the Texas Higher Education Coordinating Board. The third request concerns additional funds for the agency to attract and retain talented staff. For several years, the PRB has not had appropriate funding to retain talented employees and as a result, several talented individuals have left the agency for more lucrative offers. Given current funding constraints, the PRB has been unable to match or partially match these offers to retain strong personnel. For instance, we have had a deputy executive director, staff actuary, two financial analysts, and two research specialists hired away from us. The responsibilities of the staff of the PRB are highly specialized and require considerable training, thus losing trained staff due to salary constraints and needing to train new ones further hampers our ability to meet legislative mandates. The fourth request is to restore the agency budget to its baseline prior to the general revenue cuts of the biennium and to offset the one percent health care assessment required of state agencies for the biennium. Small reductions in the agency baseline, either through GR cuts or having to cover health care costs, pose a real challenge to the agency. The result of the baseline reductions is the inability or significant time delay in filling vacant positions as well as keeping the staff level one FTE below what is authorized in the GAA. The fifth request, made specifically by our board members, is to continue the effort made by the 82nd Legislature to raise the salary of the executive director to a level comparable to similar positions in state government. Although the board greatly appreciates the Legislature s partially funding this request in the current biennium, we request finishing this process in The requested increase would allow for the executive director s salary to be comparable to other executive director s salaries in agencies with similar mission s and staff sizes. The State Auditor in his July 21 report A Classification Study of Exempt Positions listed the then current market value of the position at $113,36, which reflects a gap of approximately $33, between the current authorized salary for the position and its corresponding market value. In light of the current economic conditions, but with consideration that the board needs the ability to attract and retain talent to the executive director position, the board requests a salary increase from $8, annually to $11, annually. This adjustment would reflect the technical competency needed to achieve the agency s mandated requirements at a level of quality its constituencies have come to expect. Additionally, the board requests that the authority in the executive director s salary be accompanied by a corresponding increase in the agency s total appropriation for FY In the board s words: The board is committed only to providing salary increases to the incumbent executive director based on merit; any future increases must be based upon a thorough professional evaluation of the incumbent s work product in relation to stipulated high board expectations. The PRB is a small agency with approximately 9% of the appropriations dedicated to staff salaries. Any additional cuts imposed would leave the agency in a precarious position because it would have to reduce personnel, real people, not just authorized positions, which would directly affect service delivery. The exercise of preparing the 1% general revenue-related base reduction was a sobering challenge. Since the agency is already grappling with a limited budget, the inability to hold regional Page 2 of 3

5 ADMINISTRATOR'S STATEMENT 8/9/212 8:3:56AM 338 Pension Review Board educational seminars, little support for miscellaneous operating expenses, another 1% budget reduction appears likely to erode the agency s ability to accomplish its fundamental purpose of monitoring Texas public retirement systems on behalf of the Governor and Legislature as their tool to ensure the systems financial viability and to protect the retirements of millions of Texans who are or have contributed into those systems. We request base funding as well as the few noted exceptional items in order to maintain and improve every service we provide. We believe the State Pension Review Board has been a responsible model for pension oversight, and we hope to be able to continue as a leader in that field. Page 3 of 3

6 Texas Pension Review Board Organizational Chart Governor (Rick Perry) January 214 Speaker of the House of Representatives (Joe Straus) January 213 Lieutenant Governor (David Dewhurst) January 214 Chair Richard McElreath Securities Investment Term Expires 1/31/213 Vice Chair Paul Braden Pension Law Term Expires 1/31/215 Andrew Cable Active Member Term Expires 1/31/213 Leslie Greco- Pool Securities Investment Term Expires 1/31/215 J. Robert Massengale Retired Member Term Expires 1/31/217 Norman Parrish Actuarial Science Term Expires 1/31/213 Wayne Roberts Government al Finance Term Expires 1/31/215 Vicki Truitt Representative Term Expires 1/31/211 John Whitmire Senator Term Expires 1/31/25 State Pension Review Board Operational Executive Director (Christopher Hanson) Staff Services Officer (Lynda Baker) Analytical Administrative Accounting/Human Resources Policy Division Investment Division Actuarial Division Data Division Administrative Assistant (Madalene Allen) Administrative Assistant (Cathy Overton-Johns) Accountant (John Perryman) Policy Analyst (Anumeha) Investment Analyst (Nick Ballard) Actuary (Daniel Moore) Financial Analyst (Joey Evans) Research Specialist (Emily Brandt) Research Specialist (Steve Crone) Research Specialist (Ashley Rendon) The agency is allowed to have up to 13 FTEs. Due to budgetary constraints there is a Program Specialist position vacant that is not being shown. Updated March 212

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8 2.A. SUMMARY OF BASE REQUEST BY STRATEGY 8/9/212 8:47:51AM 338 Pension Review Board Goal / Objective / STRATEGY Exp 211 Est 212 Bud 213 Req 214 Req Ensure Actuarially Sound Retirement Systems 1 Determine Actuarial Condition of All Public Retirement Systems 1 RETIREMENT SYSTEM REVIEWS 377,85 347,79 347,1 347,2 347,1 2 Respond to Requests From Legislature and Public Retirement Systems 1 TECHNICAL ASSISTANCE AND EDUCATION 289, , , 357, 357, TOTAL, GOAL 1 $667,249 $695,234 $74,1 $74,2 $74,1 TOTAL, AGENCY STRATEGY REQUEST $667,249 $695,234 $74,1 $74,2 $74,1 TOTAL, AGENCY RIDER APPROPRIATIONS REQUEST* $ $ GRAND TOTAL, AGENCY REQUEST $667,249 $695,234 $74,1 $74,2 $74,1 Page 1 of 2

9 2.A. SUMMARY OF BASE REQUEST BY STRATEGY 8/9/212 8:48:19AM 338 Pension Review Board Goal / Objective / STRATEGY Exp 211 Est 212 Bud 213 Req 214 Req 215 METHOD OF FINANCING: General Revenue Funds: 1 General Revenue Fund 659, , ,1 694,2 694,1 Other Funds: SUBTOTAL $659,649 $695,234 $694,1 $694,2 $694,1 666 Appropriated Receipts 7,6 1, 1, 1, SUBTOTAL $7,6 $ $1, $1, $1, TOTAL, METHOD OF FINANCING $667,249 $695,234 $74,1 $74,2 $74,1 *Rider appropriations for the historical years are included in the strategy amounts. Page 2 of 2

10 2.B. SUMMARY OF BASE REQUEST BY METHOD OF FINANCE 8/9/212 8:48:4AM Agency code: 338 Agency name: Pension Review Board METHOD OF FINANCING Exp 211 Est 212 Bud 213 Req 214 Req 215 GENERAL REVENUE 1 General Revenue Fund REGULAR APPROPRIATIONS Regular Appropriations from MOF Table (21-11 GAA) $692,968 $ $ $ $ Regular Appropriations from MOF Table ( GAA) $ $694,2 $694,1 $694,2 $694,1 RIDER APPROPRIATION Article IX, Sec , Payments to DIR ( Biennium) $ $1,232 $ $ $ Comments: Rebates received from DIR. SUPPLEMENTAL, SPECIAL OR EMERGENCY APPROPRIATIONS HB 4, 82nd Leg, Regular Session, Sec 1(a) General Revenue Reductions. $(42,189) $ $ $ $ LAPSED APPROPRIATIONS Regular Appropriations from MOF Table (21-11 GAA) $(2,) $ $ $ $ Page 1 of 4

11 2.B. SUMMARY OF BASE REQUEST BY METHOD OF FINANCE 8/9/212 8:48:54AM Agency code: 338 Agency name: Pension Review Board METHOD OF FINANCING Exp 211 Est 212 Bud 213 Req 214 Req 215 GENERAL REVENUE Comments: The agency had purchased some supplies that was anticipated to arrive during FY11 but came in after the fiscal year that had to be paid out of FY 212 budget. UNEXPENDED BALANCES AUTHORITY Art IX, Sec 14.3(j), Capital Budget UB (21-11 GAA) $1,87 $ $ $ $ TOTAL, General Revenue Fund $659,649 $695,234 $694,1 $694,2 $694,1 TOTAL, ALL GENERAL REVENUE $659,649 $695,234 $694,1 $694,2 $694,1 OTHER FUNDS 666 Appropriated Receipts REGULAR APPROPRIATIONS Regular Appropriations from MOF Table (21-11 GAA) $1, $ $ $ $ Regular Appropriations from MOF Table ( GAA) $ $1, $1, $1, $1, Comments: Conference was moved from June to October. No conference for FY12. Page 2 of 4

12 2.B. SUMMARY OF BASE REQUEST BY METHOD OF FINANCE 8/9/212 8:48:54AM Agency code: 338 Agency name: Pension Review Board METHOD OF FINANCING Exp 211 Est 212 Bud 213 Req 214 Req 215 OTHER FUNDS BASE ADJUSTMENT Regular Appropriations from MOF Table (21-11 GAA) $(2,4) $ $ $ $ Regular Appropriations from MOF Table ( GAA) $ $(1,) $ $ $ Comments: Conference was moved from June to October. No conference for FY12. TOTAL, Appropriated Receipts $7,6 $ $1, $1, $1, TOTAL, ALL OTHER FUNDS $7,6 $ $1, $1, $1, GRAND TOTAL $667,249 $695,234 $74,1 $74,2 $74,1 Page 3 of 4

13 2.B. SUMMARY OF BASE REQUEST BY METHOD OF FINANCE 8/9/212 8:48:54AM Agency code: 338 Agency name: Pension Review Board METHOD OF FINANCING Exp 211 Est 212 Bud 213 Req 214 Req 215 FULL-TIME-EQUIVALENT POSITIONS REGULAR APPROPRIATIONS Regular Appropriations from MOF Table (21-11 GAA) Regular Appropriations from MOF Table ( GAA) UNAUTHORIZED NUMBER OVER (BELOW) CAP Unuauthorized Number Below Cap (2.5) (1.3) (1.).. TOTAL, ADJUSTED FTES NUMBER OF 1% FEDERALLY FUNDED FTEs..... Page 4 of 4

14 2.C. SUMMARY OF BASE REQUEST BY OBJECT OF EXPENSE 8/9/212 8:5:45AM 338 Pension Review Board OBJECT OF EXPENSE Exp 211 Est 212 Bud 213 BL 214 BL SALARIES AND WAGES 12 OTHER PERSONNEL COSTS 21 PROFESSIONAL FEES AND SERVICES 23 CONSUMABLE SUPPLIES 25 TRAVEL 26 RENT - BUILDING 27 RENT - MACHINE AND OTHER 29 OTHER OPERATING EXPENSE $531,466 $599,774 $618,835 $618,835 $618,835 $25,1 $1,8 $15,2 $15,2 $15,2 $2,839 $13,75 $12,5 $12,5 $12,5 $6,233 $2,819 $3, $3, $3, $1,77 $8,53 $15, $15, $15, $724 $1,79 $1, $1, $1, $19,14 $14,989 $15, $15, $15, $53,265 $44,735 $23,466 $23,467 $23,466 OOE Total (Excluding Riders) $667,249 $695,234 $74,1 $74,2 $74,1 OOE Total (Riders) Grand Total $667,249 $695,234 $74,1 $74,2 $74,1 Page 1 of 1

15 2.D. SUMMARY OF BASE REQUEST OBJECTIVE OUTCOMES Automated Budget and Evaluation system of Texas (ABEST) 8/9/212 8:51:21AM 338 Pension Review Board Goal/ Objective / Outcome Exp 211 Est 212 Bud 213 BL 214 BL Ensure Actuarially Sound Retirement Systems 1 Determine Actuarial Condition of All Public Retirement Systems KEY 1 Percent of Systems That Are Actuarially Sound 97.11% 98.% 98.% 98. % 98. % 2 Percent of Systems in Compliance with Reporting Requirements 5.69% 9.% 9.% 9. % 9. % 2 Respond to Requests From Legislature and Public Retirement Systems 1 % of Legislative and System Requests Answered 2 % of Seminar Attendees Satisfied 1.% 1.% 1.% 1. % 1. % KEY 1.%.% 9.% 9. % 9. % 3 % Admins, Trstees, & Mbrs of Tx Pub Pen Funds Satisfied w/educ Svcs 1.% 94.% 98.% 98. % 98. % Page 1 of 1

16 2.E. SUMMARY OF EXCEPTIONAL ITEMS REQUEST DATE: 8/9/212 TIME : 8:52:1AM Agency code: 338 Agency name: Pension Review Board Biennium GR and GR and GR and Priority Item GR/GR Dedicated All Funds FTEs GR Dedicated All Funds FTEs GR Dedicated All Funds 1 Regional Educational Seminars $12, $12,. $12, $12,. $24, $24, 2 Rider Language to Collect Funds $ $. $ $. $ $ 3 Funding for Staff Salaries $13,5 $13,5. $13,5 $13,5. $27, $27, 4 Restoration of Reduced Agency Funds $16, $16,. $16, $16,. $32, $32, 5 Executive Director Salary $3, $3,. $3, $3,. $6, $6, Total, Exceptional Items Request $71,5 $71,5. $71,5 $71,5. $143, $143, Method of Financing General Revenue $71,5 $71,5 $71,5 $71,5 $143, $143, General Revenue - Dedicated Federal Funds Other Funds $71,5 $71,5 $71,5 $71,5 $143, $143, Full Time Equivalent Positions.. Number of 1% Federally Funded FTEs.. Page 1 of 1

17 2.F. SUMMARY OF TOTAL REQUEST BY STRATEGY DATE : 8/9/212 TIME : 8:52:3AM Agency code: 338 Agency name: Pension Review Board Goal/Objective/STRATEGY 1 Ensure Actuarially Sound Retirement Systems 1 Determine Actuarial Condition of All Public Retirement Systems 1 RETIREMENT SYSTEM REVIEWS 2 Respond to Requests From Legislature and Public Retirement System 1 TECHNICAL ASSISTANCE AND EDUCATION TOTAL, GOAL 1 Base Base Exceptional Exceptional Total Request Total Request $347,2 $347,1 357, 357, $29,75 41,75 $29,75 41,75 $376, ,75 $376, ,75 $74,2 $74,1 $71,5 $71,5 $775,52 $775,51 TOTAL, AGENCY STRATEGY REQUEST TOTAL, AGENCY RIDER APPROPRIATIONS REQUEST $74,2 $74,1 $71,5 $71,5 $775,52 $775,51 GRAND TOTAL, AGENCY REQUEST $74,2 $74,1 $71,5 $71,5 $775,52 $775,51 Page 1 of 2

18 2.F. SUMMARY OF TOTAL REQUEST BY STRATEGY DATE : 8/9/212 TIME : 8:52:37AM Agency code: 338 Agency name: Pension Review Board Goal/Objective/STRATEGY General Revenue Funds: Base Base Exceptional Exceptional Total Request Total Request General Revenue Fund $694,2 $694,1 $71,5 $71,5 $765,52 $765,51 Other Funds: $694,2 $694,1 $71,5 $71,5 $765,52 $765, Appropriated Receipts 1, 1, 1, 1, $1, $1, $ $ $1, $1, TOTAL, METHOD OF FINANCING $74,2 $74,1 $71,5 $71,5 $775,52 $775,51 FULL TIME EQUIVALENT POSITIONS Page 2 of 2

19 2.G. SUMMARY OF TOTAL REQUEST OBJECTIVE OUTCOMES Automated Budget and Evaluation system of Texas (ABEST) Date : 8/9/212 Time: 8:52:54AM Agency code: 338 Agency name: Pension Review Board Goal/ Objective / Outcome BL 214 BL 215 Excp 214 Excp 215 Total Request 214 Total Request Ensure Actuarially Sound Retirement Systems 1 Determine Actuarial Condition of All Public Retirement Systems KEY 1 Percent of Systems That Are Actuarially Sound 98.% 98.% 98.% 98. % 2 Percent of Systems in Compliance with Reporting Requirements 9.% 9.% 9.% 9. % 2 Respond to Requests From Legislature and Public Retirement Systems 1 % of Legislative and System Requests Answered 1.% 1.% 1.% 1. % 2 % of Seminar Attendees Satisfied 9.% 9.% 9.% 9. % KEY 3 % Admins, Trstees, & Mbrs of Tx Pub Pen Funds Satisfied w/educ Svcs 98.% 98.% 98.% 98. % Page 1 of 1

20 3.A. STRATEGY REQUEST 8/9/212 8:53:49AM GOAL: OBJECTIVE: STRATEGY: 338 Pension Review Board 1 Ensure Actuarially Sound Retirement Systems 1 Determine Actuarial Condition of All Public Retirement Systems 1 Conduct Reviews of Texas Public Retirement Systems. Statewide Goal/Benchmark: Service Categories: 8 9 Service: 5 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 211 Est 212 Bud 213 BL 214 BL 215 Output Measures: 1 Number of Compliance Actions Initiated KEY 2 Number of Reviews Completed Efficiency Measures: 1 % Reports Filed within Time Frames After Non-compliance Notice Explanatory/Input Measures: 1 # Systems Registered with SPRB 2 Est Value of Investments Owned by Texas Retirement Systems (Billions) % 6. % 6. % 6. % 6. % Objects of Expense: 11 SALARIES AND WAGES $33,782 $325,66 $325, $325, $325, 12 OTHER PERSONNEL COSTS $16,81 $9,58 $8, $8, $8, 21 PROFESSIONAL FEES AND SERVICES $2,839 $1,23 $5 $5 $5 23 CONSUMABLE SUPPLIES $64 $1,321 $1, $1, $1, 25 TRAVEL $63 $4,843 $7, $7, $7, 26 RENT - BUILDING $ $22 $5 $5 $5 27 RENT - MACHINE AND OTHER $14,8 $77 $2, $2, $2, Page 1 of 7

21 3.A. STRATEGY REQUEST 8/9/212 8:53:53AM GOAL: OBJECTIVE: STRATEGY: 338 Pension Review Board 1 Ensure Actuarially Sound Retirement Systems 1 Determine Actuarial Condition of All Public Retirement Systems 1 Conduct Reviews of Texas Public Retirement Systems. Statewide Goal/Benchmark: Service Categories: 8 9 Service: 5 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 211 Est 212 Bud 213 BL 214 BL OTHER OPERATING EXPENSE $21,78 $4,13 $3,1 $3,2 $3,1 TOTAL, OBJECT OF EXPENSE $377,85 $347,79 $347,1 $347,2 $347,1 Method of Financing: 1 General Revenue Fund $377,85 $347,79 $347,1 $347,2 $347,1 SUBTOTAL, MOF (GENERAL REVENUE FUNDS) $377,85 $347,79 $347,1 $347,2 $347,1 TOTAL, METHOD OF FINANCE (INCLUDING RIDERS) $347,2 $347,1 TOTAL, METHOD OF FINANCE (EXCLUDING RIDERS) $377,85 $347,79 $347,1 $347,2 $347,1 FULL TIME EQUIVALENT POSITIONS: STRATEGY DESCRIPTION AND JUSTIFICATION: The agency is mandated by Statute (Chapter 81, Government Code) to conduct a continuing review of Texas public retirement systems and to identify and study potential problems affecting the systems. The agency will gather and analyze a substantial amount of financial and actuarial data on all public retirement systems in the state and will make recommendations and provide technical assistance as needed. These efforts contribute directly to the statewide goal to support effective and efficient state government operations. Page 2 of 7

22 3.A. STRATEGY REQUEST 8/9/212 8:53:53AM GOAL: OBJECTIVE: STRATEGY: 338 Pension Review Board 1 Ensure Actuarially Sound Retirement Systems 1 Determine Actuarial Condition of All Public Retirement Systems 1 Conduct Reviews of Texas Public Retirement Systems. Statewide Goal/Benchmark: Service Categories: 8 9 Service: 5 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 211 Est 212 Bud 213 BL 214 BL 215 EXTERNAL/INTERNAL FACTORS IMPACTING STRATEGY: In order to improve public knowledge and promote transparency, the agency is partnering with the Comptroller of Public Accounts to post searchable pension information on Comptroller's Window on State Government website. Additionally, the agency will be creating Webinars and continually expanding and improving its website to provide educational services to its constituents in a cost efficient manner. Note: The estimated value for investments owned by Texas public retirement systems is calculated using the total net market value of assets. Page 3 of 7

23 3.A. STRATEGY REQUEST 8/9/212 8:53:53AM GOAL: OBJECTIVE: STRATEGY: 338 Pension Review Board 1 Ensure Actuarially Sound Retirement Systems 2 Respond to Requests From Legislature and Public Retirement Systems 1 Provide Technical Assistance; Issue Impact Statements; Educate Statewide Goal/Benchmark: Service Categories: 8 9 Service: 5 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 211 Est 212 Bud 213 BL 214 BL 215 Output Measures: 1 Number of Impact Statements Issued 2 Number of Persons Participating in Annual Public Pension Seminar 3 Number of Persons Participating in Regional Public Pension Seminars KEY 4 Number of Technical Assistance Reports Provided by Staff 5 Number of Responses to Requests for Technical Assistance Objects of Expense: 11 SALARIES AND WAGES $227,684 $274,114 $293,835 $293,835 $293, OTHER PERSONNEL COSTS $8,92 $5 $7,2 $7,2 $7,2 21 PROFESSIONAL FEES AND SERVICES $ $12,475 $12, $12, $12, 23 CONSUMABLE SUPPLIES $5,593 $1,498 $2, $2, $2, 25 TRAVEL $1,14 $3,21 $8, $8, $8, 26 RENT - BUILDING $724 $877 $5 $5 $5 27 RENT - MACHINE AND OTHER $4,934 $14,219 $13, $13, $13, 29 OTHER OPERATING EXPENSE $31,485 $4,632 $2,465 $2,465 $2,465 Page 4 of 7

24 3.A. STRATEGY REQUEST 8/9/212 8:53:53AM GOAL: OBJECTIVE: STRATEGY: 338 Pension Review Board 1 Ensure Actuarially Sound Retirement Systems 2 Respond to Requests From Legislature and Public Retirement Systems 1 Provide Technical Assistance; Issue Impact Statements; Educate Statewide Goal/Benchmark: Service Categories: 8 9 Service: 5 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 211 Est 212 Bud 213 BL 214 BL 215 TOTAL, OBJECT OF EXPENSE $289,444 $347,525 $357, $357, $357, Method of Financing: 1 General Revenue Fund $281,844 $347,525 $347, $347, $347, SUBTOTAL, MOF (GENERAL REVENUE FUNDS) $281,844 $347,525 $347, $347, $347, Method of Financing: 666 Appropriated Receipts $7,6 $ $1, $1, $1, SUBTOTAL, MOF (OTHER FUNDS) $7,6 $ $1, $1, $1, TOTAL, METHOD OF FINANCE (INCLUDING RIDERS) $357, $357, TOTAL, METHOD OF FINANCE (EXCLUDING RIDERS) $289,444 $347,525 $357, $357, $357, FULL TIME EQUIVALENT POSITIONS: STRATEGY DESCRIPTION AND JUSTIFICATION: Page 5 of 7

25 3.A. STRATEGY REQUEST 8/9/212 8:53:53AM GOAL: OBJECTIVE: STRATEGY: 338 Pension Review Board 1 Ensure Actuarially Sound Retirement Systems 2 Respond to Requests From Legislature and Public Retirement Systems 1 Provide Technical Assistance; Issue Impact Statements; Educate Statewide Goal/Benchmark: Service Categories: 8 9 Service: 5 Income: A.2 Age: B.3 CODE DESCRIPTION Exp 211 Est 212 Bud 213 BL 214 BL 215 Chapter 81, Government Code, mandates the Pension Review Board to provide information and technical assistance on pension planning to public retirement systems and to recommend policies, practices, and legislation to the retirement systems and appropriate governmental entities. The PRB statute and House and Senate Rules require that an actuarial impact statement be attached to all pension legislation prior to committee hearings. The agency will continue to serve as a central source of information on developments in the field of public pensions. As pension plan administrators face increasing pressure to meet their funding requirements, it becomes even more important that the Pension Review Board stay abreast of investment options and funding mechanisms in order to provide the technical support these plans require. EXTERNAL/INTERNAL FACTORS IMPACTING STRATEGY: With recent market conditions coupled with budget deficits across the nation, public pension issues have grown in their importance and effect on the general taxpaying public. Many pension administrators and public officials are grappling with serious funding problems that threaten the fiscal health of public pension plans. Given the large amount of public money involved, these factors have increased the need to respond to problems and issues in a timely and efficient manner, keep the Legislature and the public informed, as well as provide assistance to the administrators and Board members of actuarially unsound plans. Page 6 of 7

26 3.A. STRATEGY REQUEST 8/9/212 8:53:53AM SUMMARY TOTALS: OBJECTS OF EXPENSE: $667,249 $695,234 $74,1 $74,2 $74,1 METHODS OF FINANCE (INCLUDING RIDERS): $74,2 $74,1 METHODS OF FINANCE (EXCLUDING RIDERS): $667,249 $695,234 $74,1 $74,2 $74,1 FULL TIME EQUIVALENT POSITIONS: Page 7 of 7

27 4.A. EXCEPTIONAL ITEM REQUEST SCHEDULE DATE: 8/9/212 TIME: 8:54:12AM Agency code: CODE 338 DESCRIPTION Agency name: Pension Review Board Item Name: Regional Educational Seminars Item Priority: 1 Includes Funding for the Following Strategy or Strategies: Provide Technical Assistance; Issue Impact Statements; Educate Excp 214 Excp 215 OBJECTS OF EXPENSE: 23 CONSUMABLE SUPPLIES TRAVEL 11, 11, 29 OTHER OPERATING EXPENSE 5 5 TOTAL, OBJECT OF EXPENSE $12, $12, METHOD OF FINANCING: 1 General Revenue Fund 12, 12, TOTAL, METHOD OF FINANCING $12, $12, DESCRIPTION / JUSTIFICATION: The amount of this item is $24,. The PRB requests additional funds to host quarterly regional seminars throughout the state. One of the agencies core duties involves education, and as recommended in the Sunset Staff Report, the agency should develop and provide training that is accessible to all public retirement systems. Funding would provide for one regional seminar each quarter, at different locations across the state. The agency would also make the presentations from the regional seminars available online through the agency website. Topics will include: asset allocation, actuarial training, fiduciary duties, developing investment policies, due diligence and creating request for proposals, plan design, federal and state law updates, GASB and pension accounting, and retiree preparation. EXTERNAL/INTERNAL FACTORS: Schedule 4.A Page 1 of 5

28 4.A. EXCEPTIONAL ITEM REQUEST SCHEDULE DATE: 8/9/212 TIME: 8:54:18AM Agency code: CODE 338 DESCRIPTION Agency name: Pension Review Board Excp 214 Excp 215 Item Name: Rider Language for the Agency to Collect Funds for Pension Training Conferences, Seminars, and Meetings Item Priority: 2 Includes Funding for the Following Strategy or Strategies: Provide Technical Assistance; Issue Impact Statements; Educate OBJECTS OF EXPENSE: 23 CONSUMABLE SUPPLIES TOTAL, OBJECT OF EXPENSE $ $ METHOD OF FINANCING: 1 General Revenue Fund TOTAL, METHOD OF FINANCING $ $ DESCRIPTION / JUSTIFICATION: The agency requests rider language to allow for the collection of gifts and grants to fund conferences, seminars, and meetings. The agency requests the following rider language The State Pension Review Board is hereby authorized to receive gifts and grants to fund conferences, seminars, and meetings concerning pension related issues. All funds collected shall be expended and accounted for pursuant to the provisions of Section 8.1. Acceptance of Gifts of Money, contained in Article IX, General Provisions, of this Act. In addition, the State Pension Review Board is authorized to charge registration fees to pay expenses of a conference, seminar, or meeting related to pension issues. Any registration fee or gift and grant collected by the Board to pay the expenses of a conference, seminar, or meeting may be used to pay the expenses of any other conference, seminar, or meeting for which no registration fees were collected or for which registration fees collected were insufficient to cover the total expenses. All funds received under this section are hereby appropriated to the State Pension Review Board for use as provided under this section. EXTERNAL/INTERNAL FACTORS: Schedule 4.A Page 2 of 5

29 4.A. EXCEPTIONAL ITEM REQUEST SCHEDULE DATE: 8/9/212 TIME: 8:54:18AM Agency code: CODE 338 DESCRIPTION Agency name: Pension Review Board Item Name: Funding for Staff Salaries Item Priority: 3 Includes Funding for the Following Strategy or Strategies: Conduct Reviews of Texas Public Retirement Systems Provide Technical Assistance; Issue Impact Statements; Educate Excp 214 Excp 215 OBJECTS OF EXPENSE: 11 SALARIES AND WAGES 13,5 13,5 TOTAL, OBJECT OF EXPENSE $13,5 $13,5 METHOD OF FINANCING: 1 General Revenue Fund 13,5 13,5 TOTAL, METHOD OF FINANCING $13,5 $13,5 DESCRIPTION / JUSTIFICATION: The amount of this item is $27, and represents approximately 2.5% of the agency s classified salary base. The PRB requests additional funds to attract and retain talented staff. For several years, the PRB has not had appropriate funding to retain talented employees and as a result, several individuals have left the agency for more lucrative offers with PRB having no option to even partially match these other offers. This includes the former deputy executive director and staff actuary, two financial analysts, and two research specialists. EXTERNAL/INTERNAL FACTORS: Schedule 4.A Page 3 of 5

30 4.A. EXCEPTIONAL ITEM REQUEST SCHEDULE DATE: 8/9/212 TIME: 8:54:18AM Agency code: CODE 338 DESCRIPTION Agency name: Pension Review Board Item Name: Restoration of Reduced Agency Funds Item Priority: 4 Includes Funding for the Following Strategy or Strategies: Conduct Reviews of Texas Public Retirement Systems Provide Technical Assistance; Issue Impact Statements; Educate Excp 214 Excp 215 OBJECTS OF EXPENSE: 11 SALARIES AND WAGES 16, 16, TOTAL, OBJECT OF EXPENSE $16, $16, METHOD OF FINANCING: 1 General Revenue Fund 16, 16, TOTAL, METHOD OF FINANCING $16, $16, DESCRIPTION / JUSTIFICATION: The biennial amount of this item is $32,. The PRB requests this amount to restore the agency budget to its baseline prior to the general revenue cuts of the biennium and to offset the one percent health care assessment required of state agencies for the biennium. The PRB is a small agency with 9% of its budget dedicated to salaries. Small reductions in the agency baseline, either through GR cuts or having to cover health care costs, pose a real challenge to the agency. The result of the baseline reductions is the inability or significant time delay in filling vacant positions as well as keeping the staff level one FTE below what is authorized in the GAA. Although not specifically requested here as a separate exceptional item since legislative funding recommendations for the biennium have not yet been prepared, if the baseline level is reduced in the bills as introduced, we request restoration of that funding as a top priority exceptional item if and when additional funds can be made available during the drafting of the final general appropriations act. EXTERNAL/INTERNAL FACTORS: Schedule 4.A Page 4 of 5

31 4.A. EXCEPTIONAL ITEM REQUEST SCHEDULE DATE: 8/9/212 TIME: 8:54:18AM Agency code: CODE 338 DESCRIPTION Agency name: Pension Review Board Item Name: Increase the salary of the Executive Director Item Priority: 5 Includes Funding for the Following Strategy or Strategies: Conduct Reviews of Texas Public Retirement Systems Provide Technical Assistance; Issue Impact Statements; Educate Excp 214 Excp 215 OBJECTS OF EXPENSE: 11 SALARIES AND WAGES 3, 3, TOTAL, OBJECT OF EXPENSE $3, $3, METHOD OF FINANCING: 1 General Revenue Fund 3, 3, TOTAL, METHOD OF FINANCING $3, $3, DESCRIPTION / JUSTIFICATION: The biennial amount of this item is $6,. The PRB requests an increase in the salary authorization and the necessary funds for the executive director from $8, annually to $11, annually. This increase would make the executive director s salary comparable to other executive director s salaries in agencies with similar mission and staff size. The State Auditor s report in July 21 titled A Classification Study of Exempt Positions listed the current market value of the position at $113,36. With consideration that the board needs the ability to attract and retain a suitable executive director, the board members specifically request this salary increase. Additionally, the board requests that the increase in the executive director s salary be accompanied by a corresponding increase in the agency s total appropriation for FY EXTERNAL/INTERNAL FACTORS: Schedule 4.A Page 5 of 5

32 4.B. EXCEPTIONAL ITEMS STRATEGY ALLOCATION SCHEDULE DATE: 8/9/212 TIME: 8:54:31AM Agency code: 338 Agency name: Pension Review Board Code Description Excp 214 Excp 215 Item Name: Regional Educational Seminars Allocation to Strategy: Provide Technical Assistance; Issue Impact Statements; Educate OUTPUT MEASURES: 3 Number of Persons Participating in Regional Public Pension Seminars OBJECTS OF EXPENSE: 23 CONSUMABLE SUPPLIES TRAVEL 11, 11, 29 OTHER OPERATING EXPENSE 5 5 TOTAL, OBJECT OF EXPENSE METHOD OF FINANCING: $12, $12, 1 General Revenue Fund 12, 12, TOTAL, METHOD OF FINANCING $12, $12, FULL-TIME EQUIVALENT POSITIONS (FTE):.. Page 1 of 8

33 4.B. EXCEPTIONAL ITEMS STRATEGY ALLOCATION SCHEDULE DATE: 8/9/212 TIME: 8:54:35AM Agency code: 338 Agency name: Pension Review Board Code Description Excp 214 Excp 215 Item Name: Rider Language for the Agency to Collect Funds for Pension Training Conferences, Seminars, and Meetings. Allocation to Strategy: Provide Technical Assistance; Issue Impact Statements; Educate OBJECTS OF EXPENSE: 23 CONSUMABLE SUPPLIES TOTAL, OBJECT OF EXPENSE METHOD OF FINANCING: $ $ 1 General Revenue Fund TOTAL, METHOD OF FINANCING $ $ FULL-TIME EQUIVALENT POSITIONS (FTE):.. Page 2 of 8

34 4.B. EXCEPTIONAL ITEMS STRATEGY ALLOCATION SCHEDULE DATE: 8/9/212 TIME: 8:54:35AM Agency code: 338 Agency name: Pension Review Board Code Description Excp 214 Excp 215 Item Name: Funding for Staff Salaries Allocation to Strategy: Conduct Reviews of Texas Public Retirement Systems. OBJECTS OF EXPENSE: 11 SALARIES AND WAGES 6,75 6,75 TOTAL, OBJECT OF EXPENSE METHOD OF FINANCING: $6,75 $6,75 1 General Revenue Fund 6,75 6,75 TOTAL, METHOD OF FINANCING $6,75 $6,75 FULL-TIME EQUIVALENT POSITIONS (FTE):.. Page 3 of 8

35 4.B. EXCEPTIONAL ITEMS STRATEGY ALLOCATION SCHEDULE DATE: 8/9/212 TIME: 8:54:35AM Agency code: 338 Agency name: Pension Review Board Code Description Excp 214 Excp 215 Item Name: Funding for Staff Salaries Allocation to Strategy: Provide Technical Assistance; Issue Impact Statements; Educate OBJECTS OF EXPENSE: 11 SALARIES AND WAGES 6,75 6,75 TOTAL, OBJECT OF EXPENSE METHOD OF FINANCING: $6,75 $6,75 1 General Revenue Fund 6,75 6,75 TOTAL, METHOD OF FINANCING $6,75 $6,75 FULL-TIME EQUIVALENT POSITIONS (FTE):.. Page 4 of 8

36 4.B. EXCEPTIONAL ITEMS STRATEGY ALLOCATION SCHEDULE DATE: 8/9/212 TIME: 8:54:35AM Agency code: 338 Agency name: Pension Review Board Code Description Excp 214 Excp 215 Item Name: Restoration of Reduced Agency Funds Allocation to Strategy: Conduct Reviews of Texas Public Retirement Systems. OBJECTS OF EXPENSE: 11 SALARIES AND WAGES 8, 8, TOTAL, OBJECT OF EXPENSE METHOD OF FINANCING: $8, $8, 1 General Revenue Fund 8, 8, TOTAL, METHOD OF FINANCING $8, $8, FULL-TIME EQUIVALENT POSITIONS (FTE):.. Page 5 of 8

37 4.B. EXCEPTIONAL ITEMS STRATEGY ALLOCATION SCHEDULE DATE: 8/9/212 TIME: 8:54:35AM Agency code: 338 Agency name: Pension Review Board Code Description Excp 214 Excp 215 Item Name: Restoration of Reduced Agency Funds Allocation to Strategy: Provide Technical Assistance; Issue Impact Statements; Educate OBJECTS OF EXPENSE: 11 SALARIES AND WAGES 8, 8, TOTAL, OBJECT OF EXPENSE METHOD OF FINANCING: $8, $8, 1 General Revenue Fund 8, 8, TOTAL, METHOD OF FINANCING $8, $8, FULL-TIME EQUIVALENT POSITIONS (FTE):.. Page 6 of 8

38 4.B. EXCEPTIONAL ITEMS STRATEGY ALLOCATION SCHEDULE DATE: 8/9/212 TIME: 8:54:35AM Agency code: 338 Agency name: Pension Review Board Code Description Excp 214 Excp 215 Item Name: Increase the salary of the Executive Director Allocation to Strategy: Conduct Reviews of Texas Public Retirement Systems. OBJECTS OF EXPENSE: 11 SALARIES AND WAGES 15, 15, TOTAL, OBJECT OF EXPENSE METHOD OF FINANCING: $15, $15, 1 General Revenue Fund 15, 15, TOTAL, METHOD OF FINANCING $15, $15, FULL-TIME EQUIVALENT POSITIONS (FTE):.. Page 7 of 8

39 4.B. EXCEPTIONAL ITEMS STRATEGY ALLOCATION SCHEDULE DATE: 8/9/212 TIME: 8:54:35AM Agency code: 338 Agency name: Pension Review Board Code Description Excp 214 Excp 215 Item Name: Increase the salary of the Executive Director Allocation to Strategy: Provide Technical Assistance; Issue Impact Statements; Educate OBJECTS OF EXPENSE: 11 SALARIES AND WAGES 15, 15, TOTAL, OBJECT OF EXPENSE METHOD OF FINANCING: $15, $15, 1 General Revenue Fund 15, 15, TOTAL, METHOD OF FINANCING $15, $15, FULL-TIME EQUIVALENT POSITIONS (FTE):.. Page 8 of 8

40 4.C. EXCEPTIONAL ITEMS STRATEGY REQUEST DATE: 8/9/212 TIME: 8:54:58AM Agency Code: 338 Agency name: Pension Review Board GOAL: OBJECTIVE: STRATEGY: 1 Ensure Actuarially Sound Retirement Systems 1 Determine Actuarial Condition of All Public Retirement Systems 1 Conduct Reviews of Texas Public Retirement Systems. Statewide Goal/Benchmark: 8 Service Categories: Service: 5 Income: A.2 Age: - 9 B.3 CODE DESCRIPTION OBJECTS OF EXPENSE: Excp 214 Excp SALARIES AND WAGES 29,75 29,75 Total, Objects of Expense $29,75 $29,75 METHOD OF FINANCING: 1 General Revenue Fund 29,75 29,75 Total, Method of Finance $29,75 $29,75 EXCEPTIONAL ITEM(S) INCLUDED IN STRATEGY: Funding for Staff Salaries Restoration of Reduced Agency Funds Increase the salary of the Executive Director Page 1 of 2

41 4.C. EXCEPTIONAL ITEMS STRATEGY REQUEST DATE: 8/9/212 TIME: 8:55:15AM Agency Code: 338 Agency name: Pension Review Board GOAL: OBJECTIVE: STRATEGY: 1 Ensure Actuarially Sound Retirement Systems 2 Respond to Requests From Legislature and Public Retirement Systems 1 Provide Technical Assistance; Issue Impact Statements; Educate Statewide Goal/Benchmark: 8 Service Categories: Service: 5 Income: A.2 Age: - 9 B.3 CODE DESCRIPTION OUTPUT MEASURES: Excp 214 Excp Number of Persons Participating in Regional Public Pension Seminars OBJECTS OF EXPENSE: SALARIES AND WAGES 29,75 29,75 23 CONSUMABLE SUPPLIES TRAVEL 11, 11, 29 OTHER OPERATING EXPENSE 5 5 Total, Objects of Expense $41,75 $41,75 METHOD OF FINANCING: 1 General Revenue Fund 41,75 41,75 Total, Method of Finance $41,75 $41,75 EXCEPTIONAL ITEM(S) INCLUDED IN STRATEGY: Regional Educational Seminars Rider Language for the Agency to Collect Funds for Pension Training Conferences, Seminars, and Meetings. Funding for Staff Salaries Restoration of Reduced Agency Funds Increase the salary of the Executive Director Page 2 of 2

42 GENERAL REVENUE (GR) & GENERAL REVENUE DEDICATED (GR-D) BASELINE REPORT DATE: 8/9/212 TIME: 8:55:32AM Agency code: Agency name: Pension Review Board Strategy/Strategy Option/Rider 214 Funds 215 Funds Biennial FTEs Total GR Ded FTEs Total GR Ded Cumulative GR Strategy: Strategy: Conduct Reviews of Texas Public Retirement Systems. 347,2 347, ,1 Provide Technical Assistance; Issue Impact Statements; Educate 357, 347, , 347,1 347, GR Baseline Request Limit = $1,389,235 GR-D Baseline Request Limit = $ 694,3 1,388,3 Biennial Cumulative Ded Page # ******GR Baseline Request Limit=$1,389,235****** Excp Item: 1. Regional Educational Seminars 12, 12,. 12, 12, 1,412,3 Strategy Detail for Excp Item: 1 Strategy: Provide Technical Assistance; Issue Impact Statements; Educate. 12, 12,. 12, 12, Excp Item: 3. Funding for Staff Salaries 13,5 13,5. 13,5 13,5 1,439,3 Strategy Detail for Excp Item: 3 Strategy: Conduct Reviews of Texas Public Retirement Systems.. 6,75 6,75. 6,75 6,75 Strategy: Provide Technical Assistance; Issue Impact Statements; Educate. 6,75 6,75. 6,75 6,75 Excp Item: 4. Restoration of Reduced Agency Funds 16, 16,. 16, 16, 1,471,3 Page 1 of 2

43 GENERAL REVENUE (GR) & GENERAL REVENUE DEDICATED (GR-D) BASELINE REPORT DATE: 8/9/212 TIME: 8:56:52AM Agency code: Agency name: Pension Review Board Strategy/Strategy Option/Rider 214 Funds 215 Funds Biennial FTEs Total GR Ded FTEs Total GR Ded Cumulative GR GR Baseline Request Limit = $1,389,235 GR-D Baseline Request Limit = $ Biennial Cumulative Ded Page # Strategy Detail for Excp Item: 4 Strategy: Conduct Reviews of Texas Public Retirement Systems.. 8, 8,. 8, 8, Strategy: Provide Technical Assistance; Issue Impact Statements; Educate. 8, 8,. 8, 8, Excp Item: 5. Increase the salary of the Executive Director 3, 3,. 3, 3, 1,531,3 Strategy Detail for Excp Item: 5 Strategy: Conduct Reviews of Texas Public Retirement Systems.. 15, 15,. 15, 15, Strategy: Provide Technical Assistance; Issue Impact Statements; Educate. 15, 15,. 15, 15, 12. $775,52 $765,52 $ 12. $775,51 $765,51 Page 2 of 2

44 6.A. HISTORICALLY UNDERUTILIZED BUSINESS SUPPORTING SCHEDULE Date: 8/9/212 Time: 8:58:4AM Agency Code: 338 Agency: Pension Review Board COMPARISON TO STATEWIDE HUB PROCUREMENT GOALS A. Fiscal Year HUB Expenditure Information Statewide Procurement HUB Expenditures FY 21 Total Expenditures HUB Expenditures FY 211 Total Expenditures HUB Goals Category % Goal % Actual Diff Actual $ FY 21 % Goal % Actual Diff Actual $ FY % Heavy Construction. %.%.% $ $. %.%.% $ $ 26.1% Building Construction. %.%.% $ $. %.%.% $ $ 57.2% Special Trade Construction. %.%.% $ $. %.%.% $ $ 2.% Professional Services. %.%.% $ $. %.%.% $ $ 33.% Other Services 33. % 62.6% 29.6% $38,449 $61, % 21.5% -11.5% $6,875 $32, % Commodities 12.6 % 4.8% 28.2% $42,311 $13, % 1.1% -2.5% $5,129 $5,797 Total Expenditures 48.9% $8,76 $165, % $12,4 $82,842 B. Assessment of Fiscal Year Efforts to Meet HUB Procurement Goals Attainment: The Agency attained or exceeded two of the four, or 5% of the applicable statewide HUB procurement goals in fiscal years Applicability: Heavy Construction, Building Construction, Special Trade Construction, and Professional Services procurement categories are not applicable to agency's operations in fiscal year 21 or fiscal year 211. Factors Affecting Attainment: The agency's budget is 9% salary, which extremely limits discretionary acquisitions. There were several purchases that are not available from any other vendor, that limited the agency s flexibility to procure from HUB vendors. "Good-Faith" Efforts: PRB will make a good faith effort to utilize HUBs in the procurement process of all goods and services; whenever applicable for any dollar amount. PRB will always strive to achieve and exceed the HUB Statewide goals whenever possible. Page 1 of 1

45 Agency Code: 6.E. ESTIMATED REVENUE COLLECTIONS SUPPORTING SCHEDULE 338 Agency name: Pension Review Board FUND/ACCOUNT Act 211 Exp 212 Exp 213 Bud 214 Est Appropriated Receipts Beginning Balance (Unencumbered): $ $ $ $ $ Estimated Revenue: 3722 Conf, Semin, & Train Regis Fees 7,6 1, 1, 1, Subtotal: Actual/Estimated Revenue Total Available 7,6 1, 1, 1, $7,6 $ $1, $1, $1, Ending Fund/Account Balance $7,6 $ $1, $1, $1, REVENUE ASSUMPTIONS: CONTACT PERSON: John Perryman Page 1 of 1

46 6I. PERCENT BIENNIAL BASE REDUCTION OPTIONS 1 % REDUCTION Date: 8/9/212 Time: 8:59:11AM Agency code: 338 Agency name: Pension Review Board REVENUE LOSS REDUCTION AMOUNT TARGET Item Priority and Name/ Method of Financing Biennial Total Biennial Total 1 Baseline Reduction of First Five Percent Category: Programs - Service Reductions (FTEs-Layoffs) Item Comment: To achieve the necessary general revenue reduction of the first $69,462 for the biennium, the PRB would eliminate one staff position, or 7.7% of the agency s authorized FTE. Since current funding restraints already prevent the agency from filling one position, this additional reduction would under staff PRB by 15.4% from the legislatively acknowledged preferred level of 13. Currently 9% of the budget is dedicated to salary, thus to achieve a reduction of 5%, the agency must reduce its salary budget further. The impact on agency morale and service delivery would be significant. The loss of staff will further aggravate existing workload excesses on remaining personnel. More importantly, a 5% reduction would reduce PRB s ability to conduct timely analysis of the state s public retirement systems and erode the educational services provided by the agency. Strategy: Conduct Reviews of Texas Public Retirement Systems. General Revenue Funds 1 General Revenue Fund $ $ $ $17,366 $17,366 $34,732 General Revenue Funds Total $ $ $ $17,366 $17,366 $34,732 Strategy: Provide Technical Assistance; Issue Impact Statements; Educate General Revenue Funds 1 General Revenue Fund $ $ $ $17,365 $17,365 $34,73 General Revenue Funds Total $ $ $ $17,365 $17,365 $34,73 Item Total $ $ $ $34,731 $34,731 $69,462 FTE Reductions (From FY 214 and FY 215 Base Request) Baseline Reduction of Second Five Percent Category: Programs - Service Reductions (FTEs-Layoffs) Page 1 of 2

47 6I. PERCENT BIENNIAL BASE REDUCTION OPTIONS 1 % REDUCTION Date: 8/9/212 Time: 8:59:17AM Agency code: 338 Agency name: Pension Review Board REVENUE LOSS REDUCTION AMOUNT TARGET Item Priority and Name/ Method of Financing Biennial Total Biennial Total Item Comment: To achieve the necessary general revenue reduction of the second $69,462 for the biennium, the PRB would eliminate a second staff position, resulting in total understaffing for the biennium of 15.4%, or 23.1% off the legislatively acknowledged preferred level of 13. As already noted, the agency currently has 9% of its budget dedicated to salary, thus to achieve a reduction of another 5% (1% total for the biennium) the agency would have to reduce further its number of personnel. The impact would be severe and delay the implementation of services. The agency has been recommended for continued operation with enhanced responsibilities by the Sunset staff (full Commission recommendation pending as of this writing). A reduction of 1% from the already eroded funding level would jeopardize the ability of the agency to fulfill its mission. Nonetheless, the board and staff are committed to doing the best we can to deliver effective services at whatever level the Legislature and Governor deem necessary. Strategy: Conduct Reviews of Texas Public Retirement Systems. General Revenue Funds 1 General Revenue Fund $ $ $ $17,366 $17,366 $34,732 General Revenue Funds Total $ $ $ $17,366 $17,366 $34,732 Strategy: Provide Technical Assistance; Issue Impact Statements; Educate General Revenue Funds 1 General Revenue Fund $ $ $ $17,365 $17,365 $34,73 General Revenue Funds Total $ $ $ $17,365 $17,365 $34,73 Item Total $ $ $ $34,731 $34,731 $69,462 FTE Reductions (From FY 214 and FY 215 Base Request) AGENCY TOTALS General Revenue Total Agency Grand Total $ $ $ $69,462 $69,462 Difference, Options Total Less Target Agency FTE Reductions (From FY 214 and FY 215 Base Request) $69,462 $69,462 $138,924 $138,924 $138,924 Page 2 of 2