LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 8, 1999 TO: Honorable Florence Shapiro, Chair, Senate Committee on State Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: SB1785 by Gallegos (Relating to creation of a benefit fund and supplemental one-time payment for certain peace officers and fire fighters disabled in the line of duty.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1785, As Introduced: negative impact of $(5,250,000) 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 $(2,625,000) * * 2001 (2,625,000) * * 2002 (2,625,000) * * 2003 (2,625,000) * * 2004 (2,625,000) * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * General Revenue Fund * * 0001 * * 2000 $(2,625,000) * * 2001 (2,625,000) * * 2002 (2,625,000) * * 2003 (2,625,000) * * 2004 (2,625,000) * ***************************************************** Fiscal Analysis The bill allows for a one-time payment of $75,000 to peace officers and fire fighters who sustain an injury in the performance of their duties that results in a permanent incapacity for work. The bill would also establish an account in the General Revenue Fund, called the Peace Officer and Fire Fighter Supplemental Payment Account, consisting of gifts, grants, and other revenues. Methodology It is estimated that an average of 35 peace officers and fire fighters a year are permanently and totally disabled from the performance of their duties, out of a total of approximately 80,000 peace officers and fire fighters in the state. At $75,000 per supplemental payment, the total cost equals $2,625,000 per year. It is assumed that gifts and grants received by the Peace Officer and Fire Fighter Supplemental Payment Account would be insufficient to pay the benefits, and that General Revenue would be used. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, SD, PE, SC