LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 21, 2001 TO: Honorable Senfronia Thompson, Chair, House Committee on Judicial Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: HB2300 by Thompson (Relating to the salaries of certain judges and to the collection of certain court costs.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2300, Committee Report 1st House, Substituted: positive impact * * of $948,750 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 $453,750 * * 2003 495,000 * * 2004 495,000 * * 2005 495,000 * * 2006 495,000 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Probable Revenue * * Year Savings/(Cost) from Savings/(Cost) from Gain/(Loss) from * * General Revenue Fund Judicial Fund Judicial Fund * * 0001 0573 0573 * * 2002 $453,750 $(5,130,950) $1,936,000 * * 2003 495,000 (5,597,400) 1,936,000 * * 2004 495,000 (5,597,400) 1,936,000 * * 2005 495,000 (5,597,400) 1,936,000 * * 2006 495,000 (5,597,400) 1,936,000 * ************************************************************************** Fiscal Analysis The bill would require the state to reimburse counties for the salaries of 192 statutory county judges at an amount up to $49,700. Additionally the bill drops the 40 percent judicial function requirement for constitutional county judges to receive a $10,000 salary supplement. The bill would also require all statutory county courts to collect the fees and court costs specified in the Government Code, Section 51.702. The bill would increase the fee for filing a civil suit from $40 to $55. Of this amount, $5 would remain in county funds. The fees provisions of the bill would take effect September 1, 2001 and only would apply to a civil case filed or to an offense committed on or after that date. The salary provisions in the bill would take effect October 1, 2001 and only would apply to a salary payment made on or after that date. Methodology Currently the state reimburses 64 counties participating in the fees collection program an amount of $35,000 annually for a salary supplement paid to a total of 138 statutory county judges. Five thousand of this supplement comes from General Revenue. This estimate raises the level of state reimbursement for each judge to $49,700 annually for all 192 statutory county judges in the state. This estimate assumes that all of the salary supplement would come from Judicial Fund 573. This estimate assumes the bill would authorize an additional $19,700 per judge from Fund 573 for the 138 statutory county judges who currently receive salary supplements and an additional $49,700 from Fund 573 for the 54 statutory county judges who currently do not receive the state salary supplement. At this time, the state is paying the $10,000 annual salary supplement to 215 constitutional county judges whose judicial functions are 40 percent of their duties. Five thousand of this supplement comes from the General Revenue Fund, with the remainder coming from Fund 573. The bill would remove that standard, and this estimate assumes that all 254 constitutional county judges would qualify. Finally, the bill would require all statutory county courts to collect the fees and court costs specified in the Government Code, Section 51.702. Ten counties of the 74 counties that have statutory county courts currently do not participate in the fees collection program. The fee for filing a civil suit under this provision would increase from $40 to $50 for Judicial Fund 573, with an additional $5 for county funds. This estimate assumes that an additional $1,936,000 per year would accrue to Judicial Fund No. 573 through increased collections. This estimate assumes that counties would continue to pay Social Security and retirement benefits of statutory county judges. Finally, this estimate assumes that Judicial Fund 573 would have sufficient funds for the increased payments of $19,700 or $49,700 to each statutory county judge. To the extent that sufficient funds would not be available for appropriation in the Judicial Fund 0573, another fund, such as the General Revenue Fund 0001, would have to make up the difference. Local Government Impact All 74 counties with statutory courts would experience a net savings as a result of the provisions of the bill. The savings would vary by county, depending on the number of judges and the salary and benefits counties currently pay. Minimum salary savings per county will be $14,700. Additionally, all 74 counties would have increased revenue due to the $5 increase in the fee to file a civil suit. It is estimated that the $5 increase in the fee to file a civil suit would generate $494,400 to the 74 counties with statutory courts. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, TB