LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 6, 1999
  
  
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1130  by Armbrister (Relating to programs and systems
               administered by the Employees Retirement System of
               Texas.), As Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
The provisions of the bill relating to improved retirement benefits for
Employees Retirement System (ERS) members would have an actuarial cost,
but no additional state contributions would be required.

There are also provisions in the bill affecting insurance programs
administered by the ERS.  One provision specifies a reserve to be held
for self insured programs equal to 60 days of anticipated claims and
administrative costs.  This provision would not have a fiscal impact
relative to SB 2, the General Appropriations Bill, as introduced.
However, if the Senate Finance Committee recommends a reduction in
appropriations for state and higher education employees' health
insurance in anticipation of a lower reserve level, this provision could
have a fiscal impact.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, SD, WM