LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 2, 2001 TO: Honorable Dale B. Tillery, Chair, House Committee on Pensions & Investments FROM: John Keel, Director, Legislative Budget Board IN RE: HB1503 by McCall (Relating to the continuation of the State Pension Review Board, to functions performed by the board, and to the funding of the board.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1503, As Introduced: negative impact of $(84,000) 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 $(42,000) * * 2003 (42,000) * * 2004 (42,000) * * 2005 (42,000) * * 2006 (42,000) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) * * Year General Revenue Fund from State Pension Review Board * * 0001 Fund * * 0662 * * 2002 $(42,000) $(42,000) * * 2003 (42,000) (42,000) * * 2004 (42,000) (42,000) * * 2005 (42,000) (42,000) * * 2006 (42,000) (42,000) * *************************************************************************** Fiscal Analysis The bill enacts the recommendations of the Sunset Advisory Committee, and includes a prohibition on voluntary contributions to the State Pension Review Board Fund from local public retirement systems in the state. Currently, the agency spends approximately $45,000 each year from this fund. Methodology The voluntary contributions are the primary source of revenue to the State Pension Review Board Fund. The Comptroller of Public Accounts estimates that approximately $42,000 each year is received in voluntary contributions. If these contributions are prohibited, it is assumed that General Revenue will be used to maintain the agency at its current level of funding. The Fund would still continue to receive fees and revenues from the seminars conducted by the agency, estimated by the Comptroller at $3,000 each year. Local Government Impact Since the voluntary contributions from local retirement systems would be prohibited, it is estimated that these systems would save $42,000 each year. Source Agencies: 344 Texas Commission on Human Rights, 304 Comptroller of Public Accounts, 338 State Pension Review Board, 302 Office of the Attorney General, 116 Sunset Advisory Commission LBB Staff: JK, RB, SC