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 ************************************************************************** * 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