LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 5, 1997
TO: Honorable Robert Junell, Chair IN RE: House Bill No. 2174, Committee Report 1st House, Substituted
Committee on Appropriations By: Kubiak
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2174 ( relating
to increasing the longevity pay of certain state employees)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB2174-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
negative impact of $(1,269,000) to General Revenue Related Funds
through the biennium ending August 31, 1999.
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 Analysis
Currently longevity pay for state employees is $4 for each year
of service. This is paid to employees after five years of service,
and the amount is increased after 10, 15, 20, and 25 years of
service. The bill would add increases after 30, 35, and 40 years
of service.
Methodolgy
The cost of adding 30, 35, and 40 year increases was estimated
using February 1997 information from the Comptroller of Public
Accounts payroll system. This cost was then projected forward
from 1998 through 2002 based on the average 2.7 percent annual
increase in state longevity payments from fiscal year 1992 to
fiscal year 1997. These costs were then allocated to General
Revenue and other funds based on the 1997 proportion of such
expenditures.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable Probable
Savings/(Cost) Savings/(Cost) Savings/(Cost)
from General from State from Other State
Revenue Fund Highway Fund Funds
0001 0006 OTHER-OTH
1998 ($626,000) ($144,000) ($122,000)
1998 (643,000) (148,000) (125,000)
2000 (661,000) (152,000) (129,000)
2001 (679,000) (156,000) (132,000)
2002 (697,000) (160,000) (136,000)
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($626,000)
1999 (643,000)
2000 (661,000)
2001 (679,000)
2002 (697,000)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 781 Higher Education Coordinating Board
304 Comptroller of Public Accounts
327 Employees Retirement System
LBB Staff: JK ,RR ,WM