LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 26, 2001
TO: Honorable Bob Hunter, Chair, House Committee on State,
Federal & International Relations
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB310 by Flores (Relating to creation of the Texas
Veterans Cemetery System.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB310, As Introduced: negative impact of $(3,329,976) 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 $(1,109,992) *
* 2003 (2,219,984) *
* 2004 (2,774,980) *
* 2005 (3,329,976) *
* 2006 (3,884,972) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Change in Number of *
* Year Savings/(Cost) from Savings/(Cost) from State Employees from *
* Federal Funds - General Revenue Fund FY 2001 *
* Federal 0001 *
* 0555 *
* 2002 $(1,800,000) $(1,109,992) 0.5 *
* 2003 (1,800,000) (2,219,984) 0.5 *
* 2004 (900,000) (2,774,980) 0.5 *
* 2005 (900,000) (3,329,976) 0.5 *
* 2006 (900,000) (3,884,972) 0.5 *
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Fiscal Analysis
The legislation would create the Texas Veterans Cemetery System to the
extent that federal funds are available. The General Land Office (GLO)
would be responsible for the operations of the system, defined in the
bill as seven cemeteries spread geographically across the state,
including maintenance and the selection and dedication of cemetery
property. The bill charges the Texas Historical Commission to review and
approve all plans, programs and materials relating to the interpretation
of historical features of the system and the GLO would conform to
guidelines set forth by the Commission for historic preservation. The
legislation would allow GLO to accept gifts, grants, money, securities,
services, or property for the cemeteries.
According to the GLO, the Department of Veterans Affairs limits its
funding for veterans cemeteries to establishing, expanding, or improving
a cemetery. Any and all costs associated with land acquisition,
administration, operation, and maintenance of the cemeteries are the
sole responsibility of the state.
Methodology
The GLO excluded any costs for land acquisition in its cost estimate of
the legislation based on information from local communities regarding
donation of land for the cemeteries. According to the GLO, local
communities from at least seven geographic regions in the state have
expressed interest in land donation for the cemeteries. As a result, the
GLO does not anticipate any costs associated with the purchase of land
for the cemeteries.
According to the GLO, the Department of Veterans Affairs estimates each
cemetery would receive between $700,000 and $1.1 million (variance due to
geographic location) for the establishment of a cemetery with 1,000
plots. The average of these two numbers, $900,000, was used for the
development cost of each cemetery.
The cost estimate assumes development costs (federal funds) for two
cemeteries in fiscal year 2002, two cemeteries in fiscal year 2003, one
cemetery in 2004, one cemetery in 2005 and one cemetery in 2006.
To the extent that federal funds are available, the GLO estimates it
would need approximately $3.884 million each year for operating costs
associated with the seven cemeteries ($554,996 each year for each
cemetery). The GLO based its estimate on cemeteries with 1,000 plots.
These costs are based on the feasibility study conducted by the Texas
Veterans Commission in 1998 (State Veterans Cemetery Feasibility Study).
Operating costs (General Revenue Funds) are assumed for two cemeteries in
2002, four cemeteries in 2003, five cemeteries in 2004, six cemeteries
in 2005 and seven cemeteries in 2006.
The Texas Historical Commission estimates it would need approximately
$20,000 a year for a half-time employee to review the plans and
materials for the cemeteries and for travel expenses associated with
cemetery inspections.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 808 Texas Historical Commission, 305 General Land
Office, 809 State Preservation Board, 403 Texas
Veterans Commission
LBB Staff: JK, JO, JC, SK, DB