LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 1, 1997 TO: Honorable Jerry Patterson, Chair IN RE: Senate Bill No. 353, Committee Report 1st House, as amended Committee on Veteran Affairs & Military Installations-Spec By: Armbrister Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB353 ( relating to the continuation and functions of the adjutant general's department.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB353-Committee Report 1st House, as amended Implementing the provisions of the bill would result in a net negative impact of $(181,370) 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 continue the agency for 12 years, setting the date for the next Sunset review at September 1, 2009. The Adjutant General's Department is subject to the provisions of the Texas Sunset Act, and unless continued by the 75th Legislature, will be abolished September 1, 1997. Funding for the Adjutant General's Department is included in the General Appropriations bill, as introduced, and is contingent upon passage of S.B. 353 or similar legislation. The General Appropriations bill, as introduced, would provide general revenue, grants, and federal funds and would provide $22,653,354 and 536 employees in fiscal year 1998 and $22,792,618 and 536 employees in fiscal year 1999. The bill would require that salaries for the Adjutant General and two Assistant Adjutant Generals be increased to be commensurate with the pay grade of a United States military officer of equivalent rank. Methodolgy The salary amounts are taken from the Department of Defense military pay scale effective January 1, 1997. The five year impact assumes an annual 3% increase per year, which is based on historical averages. 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 Savings/(Cost) from General Revenue Fund 0001 1998 ($86,650) 1998 (94,720) 2000 (103,032) 2001 (111,592) 2002 (120,709) 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 ($86,650) 1999 (94,720) 2000 (103,032) 2001 (111,592) 2002 (120,709) 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: 401 Adjutant General's Department LBB Staff: JK ,JD ,RS