LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session January 30, 1997 TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 159 Committee on State Affairs By: Haywood Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB159 ( Relating to permitting county law enforcement authorities to receive reduced airline fares while engaged in certain official duties.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB159-As Introduced Implementing the provisions of the bill would result in a net negative impact of $(88,928) 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 The bill would allow a county sheriff or deputy sheriff who is transporting a state prisoner under a felony warrant to participate in the General Services Commission's contracts for travel services, enabling these officials and their prisoners to receive discounted airline fares. Methodolgy Estimates are based on the General Services Commission's (GSC) determination that extending travel contract eligibility to county sheriffs and deputy sheriffs would significantly increase GSC's travel management workload. The GSC notes that use of the state's discounted airline fares by county sheriffs and deputy sheriffs may lead to airline fare increases under the state's travel contracts. This is based on the assumption that higher demand for discounted airfares would lead airlines to reduce the amount of the discount offered under the state travel contracts in an attempt to recover lost revenue. 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 ($50,964) 1.0 1998 (37,964) 1.0 2000 (37,964) 1.0 2001 (37,964) 1.0 2002 (37,964) 1.0 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 ($50,964) 1999 (37,964) 2000 (37,964) 2001 (37,964) 2002 (37,964) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. The GSC notes that use of the state's discounted airline fares by county sheriffs and deputy sheriffs would result in a potential savings of $8,750 per county or $750,000 statewide. Actual savings would vary depending on each county's airline travel volume. County administrative costs associated with processing travel accounts could reduce these savings. Source: Agencies: 303 General Services Commission LBB Staff: JK ,JD ,RN