LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 19, 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.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2300, As Introduced: negative impact of $(747,500) 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 $(357,500) * * 2003 (390,000) * * 2004 (390,000) * * 2005 (390,000) * * 2006 (390,000) * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Revenue Probable * * Year Savings/(Cost) from Gain/(Loss) from Savings/(Cost) from * * General Revenue Fund Judicial Fund Judicial Fund * * 0001 0573 0573 * * 2002 $(357,500) $912,000 $(12,399,200) * * 2003 (390,000) 912,000 (13,526,400) * * 2004 (390,000) 912,000 (13,526,400) * * 2005 (390,000) 912,000 (13,526,400) * * 2006 (390,000) 912,000 (13,526,400) * ************************************************************************** Fiscal Analysis The bill would require the state to reimburse counties for the salaries of 192 statutory county judges at the rate of $100,700. Currently, the state reimburses counties for certain statutory county judge salary supplements of $35,000 each. Additionally the bill drops the 40 percent judicial function requirement for constitutional county judges to receive a $10,000 salary supplement. This change would result in all 254 constitutional county judges receiving the supplement rather than the 215 county judges who currently receive the supplement. This supplement comes from the General Revenue Fund. 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 require all counties to collect the fees authorized in Chapter 51 of the Government Code. This portion 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 The estimate assumes the state reimburses counties an amount of $35,000 annually as a partial salary supplement for 192 statutory county judges. This bill would raise the level of state compensation to $100,700 annually, an additional $65,700 per statutory county court judge. 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. 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. This estimate assumes that an additional $912,000 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 $65,700 each to statutory county judges. 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 In counties currently paying the statutory county judges $100,700 annually, of which the state reimburses the counties $35,000, the counties would experience an annual savings of $65,700 per judge under the provisions of the bill. Counties currently paying less than $100,700 would experience a savings proportionate to the difference between the current county cost and the current net cost. For example, if a county currently pays each statutory county judge $75,000 and the state is reimbursing the county $35,000, the county would have a current cost of $40,000. Under the proposed new provisions, the county would experience a savings of $40,000. The counties would have to pay an increase in benefits if the $100,700 salary is a pay increase for the statutory judges; however, the increase in the state's contribution to the salaries would offset the increased benefits cost. Counties would have an overall 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. Source Agencies: 212 Office of Court Administration, 304 Comptroller of Public Accounts LBB Staff: JK, TB, JN, DB