LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 14, 1999 TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on Natural Resources 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 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB705, Committee Report 1st 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. * ************************************************************************** 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: *************************************************************************** *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 * *************************************************************************** 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 an interim committee on statewide agricultural policy consisting of 10 member of the Legislature. The bill would create a commodity crisis council to plan for agricultural crisis and drought conditions related to agricultural commodities. The bill would require the Commissioner of Agriculture to designate 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 would be absorbed in TDA's budget since the bill would require that an employee of TDA be appointed as the manager. 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