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