LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 17, 1997
         
         
      TO: Honorable Rodney Ellis, Chair            IN RE:  House Bill No. 2697, As Engrossed
          Committee on Jurisprudence                              By: Gallego
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2697 ( Relating 
to the salary from the state of a district judge who serves 
as a local administrative district judge.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB2697-As Engrossed
         

Implementing the provisions of the bill would result in a 
net negative impact of $(107,524) 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.

The bill would provide a salary supplement of 
$5,000 for local administrative district judges in counties 
with more than five district courts.

         
 
Fiscal Analysis
 
There are seven counties, Harris, Dallas, Bexar, Tarrant, El 
Paso, Travis and Hidalgo, which have more than five district 
courts.
 
Methodolgy
 
The cost to the state for providing a $5,000 supplement to ten 
local administrative district judges would be $50,000 annually.

Judges 
would be required to make retirement contributions on the additional 
salary.  For  Judicial Retirement System Plan One (JRS-1) judges, 
the employee contribution of 6.0% of salary is deposited into 
the state's General Revenue Fund.  For the estimated four JRS-1 
members, the additional revenue to the state would be $1,200 
annually.

For members of the Judicial Retirement System Plan 
Two (JRS-2), the state is required to contribute 16.54% of salary 
into the plan's trust fund.  The cost for the estimated six 
JRS-2 members would be $4,962 from the General Revenue Fund 
annually.

The amount of a judicial member's annuity under 
either system is based on the State salary of a judge of a court 
of the same classification on which the retiree last served 
before retirement.  Under this bill, the additional salary paid 
to local administrative judges would not be considered when 
calculating retirement benefits because the base salary for 
a district court judge does not change.  As a result, members 
would have to make additional retirement contributions, but 
would not receive any additional retirement benefit.
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           Change in Number   
            Savings/(Cost)     of State                                                                   
            from General       Employees from                                                             
            Revenue Fund       FY 1997                                                                    
            0001                                                                                           
       1998         ($53,762)               0.0                                                      
       1998          (53,762)               0.0                                                      
       2000          (53,762)               0.0                                                      
       2001          (53,762)               0.0                                                      
       2002          (53,762)               0.0                                                      
 
 
         Net Impact on General Revenue Related Funds:
 

 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998            ($53,762)
               1999             (53,762)
               2000             (53,762)
               2001             (53,762)
               2002             (53,762)
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,BB ,PE ,DC ,SC