LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 16, 1997 TO: Honorable Robert Junell, Chair IN RE: House Joint Resolution No. 1 Committee on Appropriations By: Gallego House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HJR1 ( Proposing a constitutional amendment relating to the purposes for which money in the compensation to victims of crime fund and the compensation to victims of crime auxiliary fund may be used.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HJR1-As Introduced Implementing the provisions of the bill would result in a net negative impact of $(182,913,000) to General Revenue Related Funds through the biennium ending August 31, 1999. Fiscal Analysis The resolution would propose an amendment to the Texas Constitution relating to the purposes for which money in the Compensation to Victims of Crime Fund and the Compensation to Victims of Crime Auxiliary Fund may be used. The resolution would make the Compensation to Victims of Crime GR-Account 0469 and the Compensation to Victims of Crime Auxiliary GR-Account 0494 dedicated funds in the State Treasury. Currently, they are dedicated accounts in the General Revenue Fund 0001. Moneys deposited to the credit of these funds, from whatever source and subject to Legislative appropriation, could be expended only for the purpose of compensating victims of crime and for providing services to victims of crime. One exception to the proposed dedication would be provided by the proposed amendment. In the event of an episode of mass violence, the Legislature would be authorized to expend moneys in either of the two funds for the purpose of assisting victims of that event. Money could be spent out of the two funds only after money appropriated for providing assistance were depleted. The proposed constitutional amendment would be submitted to the voters at an election to be held November 4, 1997. Upon passage, the proposed constitutional amendment would take effect January 1, 1998. Methodolgy By creating new constitutionally dedicated funds, there would be a loss to the General Revenue Fund because the two dedicated accounts would no longer be in the General Revenue Fund. The first-year loss for each account is based on the estimated fiscal 1997 ending balance plus the amount by which estimated revenues would exceed estimated expenditures in fiscal 1998. For each year thereafter, the losses are based on the difference between estimated revenues and expenditures. The estimates of expenditures for 1998 and 1999 are based on the proposed 1998-99 General Appropriations Act, as filed. The fiscal impact after fiscal year 1999 assumes that all revenue to the accounts would be appropriated. The cost to the state for publication of the resolution would be $71,000. 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 Revenue Probable Revenue Probable Revenue Certification Gain/(Loss) from Gain/(Loss) from Gain/(Loss) from Gain/(Loss) from Compensation to Compensation to New - General Revenue Victims of Crime Victims of Crime Compensation to Fund Account/ Auxiliary Victims of Crime GR-Dedicated Account/ and Auxiliary Fund GR-Dedicated 0001 0469 0494 NEW-OTH 1998 ($156,747,000) ($154,134,000) ($2,613,000) $156,747,000 1998 (26,095,000) (25,444,000) (651,000) 26,095,000 2000 0 0 0 0 2001 0 0 0 0 2002 0 0 0 0 Fiscal Year Probable Savings/(Cost) from General Revenue Fund for publication of the resolution 0001 1998 1999 0 2000 0 2001 0 2002 0 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 ($156,818,000) 1999 (26,095,000) 2000 0 2001 0 2002 0 The fiscal impact to local government would be the normal cost of conducting local elections but no other fiscal implications to local governments are anticipated. Source: Agencies: 304 Comptroller of Public Accounts 302 Office of the Attorney General LBB Staff: JK ,RR ,JC