LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 11, 1999
TO: Honorable David Swinford, Chair, House Committee on
Agriculture & Livestock
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB 705 by Ogden (relating to providing aid, support, and
assistance to agriculture; establishing the agricultural
technology program), Committee Report 2nd House,
Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB705, Committee Report 2nd House, Substituted: negative impact *
* of $(96,968) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(48,484) *
* 2001 (48,484) *
* 2002 (48,484) *
* 2003 (48,484) *
* 2004 (48,484) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Change in *
* Year Savings/(Cost) Revenue Savings/(Cost) Number of State *
* from General Gain/(Loss) from New - Employees from *
* Revenue Fund from New - Appropriated FY 1999 *
* 0001 Appropriated Receipts *
* Receipts *
* 2000 $(48,484) $126,000 $(126,000) 1.0 *
* 2001 (48,484) 126,000 (126,000) 1.0 *
* 2002 (48,484) 126,000 (126,000) 1.0 *
* 2003 (48,484) 126,000 (126,000) 1.0 *
* 2004 (48,484) 126,000 (126,000) 1.0 *
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Fiscal Analysis
The bill would create two new dedicated accounts in the General Revenue
Fund: Agriculture Technology Account and the Emergency Hay Account.
The bill would create a commodity crisis council to plan for agricultural
crisis and drought conditions related to agricultural commodities. The
bill would allow the Commissioner of Agriculture to designate a person
who may be an employee of the Texas Department of Agriculture (TDA) as
the Commodity Crisis Manager. Also, the bill would create an
agricultural technology program at TDA to award grants for research on
methods to address agricultural crises.
The bill would create and expand financial and risk management assistance
provided by the Texas Agricultural Extension Service (TAEX) to farmers
and ranchers.
The bill would create an agricultural emergency hay program at TDA to
provide assistance for the transport of hay during periods of natural
disaster.
Methodology
The cost for a Commodity Crisis Manager could be absorbed in TDA's
budget. TDA estimates that the cost for a program administrator to
assist in the development of crisis plans, implementation of the
agricultural technology program and emergency hay program is $48,484 per
year. The other agencies involved in the commodity crisis council could
absorb the costs of participating in the council with current resources.
TAEX submitted a cost estimate of $2,027,493 for educational programs
related to financial and risk management, which included an additional
27.5 FTEs to implement these programs. This fiscal note assumes that
the costs estimated by TAEX are beyond the scope of the bill. TAEX
estimates that the educational programs and materials would generate
additional revenues of $126,000 based on anticipated requests from four
producers per week in each of 12 districts. This fiscal note projects
costs equal to revenues generated.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 551 Department of Agriculture, 592 Soil and Water
Conservation Board, 555 Agricultural Extension
Service Texas
LBB Staff: JK, DE, DM