The disadvantages are that some employees will reject the idea the state can require them to have a bank account, while others will be reluctant to accept change in the manner in which they receive their paychecks. Retired employees may be reluctant to have their annuity payments sent directly to their banks instead of receiving them in their mailboxes. Employees below salary group 12 will be inconvenienced by the requirement to request paper warrants in writing. The electronic direct deposit program saves money spent on processing paper warrants. Additional savings would result from requiring travel warrants to be directly deposited.
Savings result from more efficient internal operations within all agencies in the state.
There is less handling of the paper warrants once they reach the agencies, such as requiring the agencies to sort the warrants, match them with the employee's statement of earnings, keep documentation of the employee's signature for the warrant and safekeeping of the warrants not yet released. Second, the costs of extracting paper warrants and statements of earnings for users of Texas Warrant Company will be recovered. However, these savings are not calculated into the fiscal impact, because they would occur as internal efficiencies in the payroll processing procedures for the affected agencies. With the increase in direct depositors, some additional costs will be incurred to process the workload associated with the initial and continued enrollment of the employees.