LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 9, 2001
TO: Honorable Florence Shapiro, Chair, Senate Committee on
State Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB877 by Flores (Relating to the benefits provided to
the surviving spouse and minor children of certain public
employees killed in the line of duty.), As Engrossed
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB877, As Engrossed: negative impact of $(140,910) 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. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(53,445) *
* 2003 (87,465) *
* 2004 (121,485) *
* 2005 (155,505) *
* 2006 (189,525) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $(53,445) *
* 2003 (87,465) *
* 2004 (121,485) *
* 2005 (155,505) *
* 2006 (189,525) *
*****************************************************
Fiscal Analysis
The bill amends Chapter 615 of the Government Code to allow for a monthly
payment to the surviving spouse of a peace officer of the state or a
political subdivision or the spouse an employee of the institutional or
state jail division of the Texas Department of Criminal Justice who was
killed in the line of duty and who had not qualified for an annuity
under an employees' retirement plan. The bill also provides for funeral
expenses of the deceased officer or employee to the surviving spouse or,
if a surviving spouse does not exist, to the surviving minor children.
The Act takes effect September 1, 2001, and applies to deaths on or
after that date. The Employees Retirement System (ERS) would be
responsible for administering the new benefit.
Methodology
The cost for providing the annuity benefits is estimated to be $19,845 in
fiscal year 2002, increasing to $155,925 in fiscal year 2006 as the
number of survivors receiving benefits increases each year. ERS
estimates that an average of 6 deaths would occur each year that would
result in benefit payments under this legislation, and that the annual
cost for providing a full year of annuity benefits would be $5,670 per
survivor, and that the deaths would be evenly spaced throughout the year.
The average cost for each funeral is estimated to be $5,600 per funeral,
based on information from the Funeral Services Commission, resulting in
an annual cost for funeral expenses of $33,600.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 327 Employees Retirement System
LBB Staff: JK, RB, SD, SC