LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 22, 1999 TO: Honorable Robert Junell, Chair, House Committee on Appropriations FROM: John Keel, Director, Legislative Budget Board IN RE: HB195 by Longoria (relating to benefits paid to survivors of certain public servants), As Introduced ************************************************************************** * Estimated Two-Year Net Impact to General Revenue Related Fundsfor * * HB195, As Introduced: negative impact of $(5,108,138) through the * * biennium ending August 31, 2001. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(2,527,814) * * 2001 (2,580,324) * * 2002 (2,632,834) * * 2003 (2,685,344) * * 2004 (2,737,854) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * General Revenue Fund * * 0001 * * 2000 $(2,527,814) * * 2001 (2,580,324) * * 2002 (2,632,834) * * 2003 (2,685,344) * * 2004 (2,737,854) * ***************************************************** Technology Impact None. Fiscal Analysis The bill would increase the lump sum benefit paid to the surviving spouse or dependent parent of a law enforcement officer or fire fighter killed in the line of duty from $50,000 to $250,000. The bill would change the benefit paid to a surviving dependent sibling from a monthly benefit of $200 to a lump sum of $250,000. The bill also increases the monthly benefit paid to a surviving minor child from $200 to $500, and extends the payments to age 21, or until the child receives a bachelor's degree or 200 hours of course credit from an institution of higher education. The bill exempts a surviving spouse or minor child who enrolls in an institution of higher education from tuition and fees at that institution, from the cost of food and housing at that institution, and pays to the student the cost of the student's books. Only survivors of law enforcement officers or fire fighters killed after September 1, 1999 are eligible for the enhanced benefits. Methodology The increase in the payments to surviving spouses/dependent parents would cost an additional $2,000,000 per year from the state's general revenue fund. This estimate assumes that benefits are paid to 10 surviving spouses/dependent parents a year, which is the average for 1994-1998. No fiscal implication is estimated for the lump sum payments to dependent siblings because no sibling benefits have been paid in the past 14 years. Payments to surviving minor children would increase by 150%, from the current total payments of $316,869, to a total of $792,173, an increase of $475,304 per year in general revenue funds. The cost of providing benefits to children over 18 years of age while they are attending an institution of higher education or until they turn 21 is estimated at $5,046 per year for each eligible child, increasing from $25,230 for 5 children in 2000, to $126,150 for 25 children in 2004. It is assumed that the first year of the bill, 5 dependents will receive free tuition, fees, books, room and board at public universities and community colleges. This number will increase by 5 dependents per year. According to the Higher Education Coordinating Board, the average student cost per year to attend public universities is $10,912, and it is assumed that half of the eligible dependents will choose to attend public universities. The cost for providing tuition, fees, books, room and board is estimated to be $27,280 in 2000, increasing to $136,400 in 2004. Local Government Impact According to the Higher Education Coordinating Board, the average student cost per year to attend community college is $7,892, and it is assumed that half of the eligible dependents will choose to attend community college. The cost for providing tuition, fees, books, room and board is estimated to be $19,730 in 2000, increasing to $98,650 in 2004. Source Agencies: 327 Employees Retirement Sys, 781 Higher Education Coordinating Board LBB Staff: JK, BB, SC