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