LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 31, 1999
  
  
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB761  by Duncan (Relating to member contributions to the
               Judicial Retirement System of Texas Plan One or the
               Judicial Retirement System of Texas Plan Two.), As
               Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB761, As Introduced:  negative impact of $(315,000) 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                           $(165,000)  *
          *       2001                            (150,000)  *
          *       2002                            (277,000)  *
          *       2003                            (262,000)  *
          *       2004                            (327,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year    Probable Revenue Gain/(Loss) from   *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                               $(165,000) *
         *      2001                                (150,000) *
         *      2002                                (277,000) *
         *      2003                                (262,000) *
         *      2004                                (327,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill would allow members of the Judicial Retirement System Plan I
(JRS-1) and the Judicial Retirement System Plan Two (JRS-2) with 20 or
more years of service to cease making member contributions.  Under
current statute, all active members of JRS-1 and JRS-2 contribute 6.0%
of salary.
  
  
Methodology
  
Member contributions by active JRS-1 members are deposited into the
General Revenue Fund.   This revenue would be reduced from current
expected levels, which range from $803,000 in FY2000 to $526,000 in
FY2004.  The revenue decrease would equal the amount members with 20
years or more of service would have contributed at 6.0% of their salary.
This decrease is estimated by the JRS actuary to range from $165,000 in
FY2000 to $327,000 in FY2004.

The elimination of member contributions for JRS-2 members with 20 or more
years of service would not have a fiscal impact to the state but would
result in a decrease in contributions available to amortize the fund's
unfunded actuarial accrued liability.  As a result, the funding period
would increase from the current 6.7 years to 25.2 years.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, SD, SC