LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 20, 2001
TO: Honorable Robert Junell, Chair, House Committee on
Appropriations
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB253 by Longoria (Relating to benefits paid to
survivors of certain law enforcement officers,
firefighters, and other public servants.), Committee
Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB253, Committee Report 1st House, Substituted: negative impact *
* of $(2,832,740) through the biennium ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(1,496,980) *
* 2003 (1,335,760) *
* 2004 (1,332,740) *
* 2005 (1,471,520) *
* 2006 (1,318,500) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year General Revenue Fund Compensation to Victims of *
* 0001 Crime Account/ GR-Dedicated *
* 0469 *
* 2002 $(1,496,980) $(992,520) *
* 2003 (1,335,760) (885,040) *
* 2004 (1,332,740) (877,560) *
* 2005 (1,471,520) (970,080) *
* 2006 (1,318,500) (862,600) *
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Fiscal Analysis
The bill as substituted modifies the provisions in the Government Code
relating to benefits paid to survivors of law enforcement officers, fire
fighters, and other public safety workers killed in the line of duty.
The bill increases the lump sum death benefit paid to a surviving spouse
from $50,000 to $250,000. If there is no surviving spouse, the $250,000
benefit is divided equally among all surviving children regardless of
age. If there are no surviving spouses or children, a $250,000 benefit
is paid to the surviving parent(s). The bill eliminates monthly benefits
for surviving minor children and benefits for surviving dependent
siblings.
The bill exempts a surviving spouse or minor child who enrolls in an
institution of higher education from tuition and fees at that
institution, from the cost of housing and food at that institution, and
pays to the student the cost of the student's books.
Only survivors of public safety personnel killed after September 1, 2000
would be eligible for the increased benefits.
Methodology
The estimated increased cost to the state for the lump sum payments to a
surviving spouse is $2,000,000 per year, based on the 1994-2000 average
of 10 deaths a year involving a payment to a spouse. ERS projects that
there will also be one $250,000 payment each year to surviving children
when there is no eligible surviving spouse, and one $250,000 payment to
surviving parents every three years where there is no surviving spouse or
children, based on past experience. There will be estimated savings of
$18,702 in fiscal year 2002, increasing to $93,510 in fiscal year 2006,
due to the elimination of the monthly benefits paid to surviving
children.
The program is currently funded with General Revenue, but benefits paid
to survivors for a death that is attributed to criminally injurious
conduct could potentially be funded using the Compensation to Victims of
Crime Fund. According to ERS estimates based on previous claims, 40% of
the deaths would be attributed to criminally injurious conduct.
Therefore, for this estimate, the method of financing for the cash
payments to survivors reflects both General Revenue and the Compensation
to Victims of Crime Fund.
Based on information on the ages of children receiving benefits under the
program, it is estimated that in the first year of the bill, 1 dependent
child will receive free tuition, fees, books, and room and board at a
public university. One additional child will be eligible every other
year, with 3 children eligible by fiscal year 2006. According to the
Higher Education Coordinating Board, the average cost per student for
these expenses is $8,200 per year at a public university. The resulting
cost to the institutions is estimated at $8,200 in fiscal year 2002,
increasing to $24,600 in fiscal year 2006. The bill specifies that
these costs will be paid from General Revenue appropriated to the
institutions.
Local Government Impact
According to the Higher Education Coordinating Board, the average student
cost for tuition, fees, books and room and board at a community college
is $5,728 per year. Each year an additional one or two children will be
eligible to receive the increased benefits and may choose to attend a
community college.
Source Agencies: 327 Employees Retirement System
LBB Staff: JK, SD, SC