LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 16, 1999
TO: Honorable Bill Ratliff, Chair, Senate Committee on Finance
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB706 by Ogden ( relating to providing disaster relief to
agriculture;
providing penalties), As Introduced
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* The bill would have a significant negative fiscal impact on general *
* revenue in the event of an agricultural disaster. *
* *
* 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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Fiscal Analysis
The bill would create an agricultural disaster relief program to provide
reimbursement of an eligible person's feed, seed, seedling and fertilizer
costs incurred in the year following a federal disaster declaration.
A person engaged in agriculture as a commercial endeavor would be
eligible to receive reimbursement if they suffer uninsurable economic
loss and do not receive federal relief funds to address the loss.
Methodology
According to a United States Department of Agriculture 1997 Census of
Agriculture, Texas had 194,301 farms of which 23,167 farms were 1,000
acres or more.
If 1,000 farmers and ranchers were eligible for reimbursement at the
maximum $15,000 per individual, there would be a cost of $15,000,000 to
the General Revenue fund. If 10,000 farmers and ranchers were eligible,
the cost to general revenue would be $150,000,000.
Technology Impact
None
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, BB, DM