LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 28, 2001 TO: Honorable Bob Turner, Chair, House Committee on Public Safety FROM: John Keel, Director, Legislative Budget Board IN RE: HB2618 by Gray (relating to the funding and operation of certain emergency management and disaster relief programs.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2618, As Introduced: negative impact of $(26,492,967) 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. * ************************************************************************** All Funds, Six-Year Impact: *************************************************************************** *Fiscal Probable Probable Probable Change in * * Year Savings/(Cost) Revenue Savings/(Cost) Number of State * * from General Gain/(Loss) from Disaster Employees from * * Revenue Fund from Disaster Management Fund FY 2001 * * 0001 Management Fund in the Texas * * in the Texas Treasury * * Treasury Safekeeping * * Safekeeping Trust Company * * Trust Company * * 2002 $(13,354,110) $13,354,110 $(13,354,110) 16.0 * * 2003 (13,138,857) 13,138,857 (13,138,857) 16.0 * * 2004 (13,138,857) 13,138,857 (13,138,857) 16.0 * * 2005 (13,138,857) 13,138,857 (13,138,857) 16.0 * * 2006 (13,138,857) 13,138,857 (13,138,857) 16.0 * *************************************************************************** *************************************************************************** *Fiscal Probable Probable Probable Change in * * Year Savings/(Cost) Revenue Savings/(Cost) Number of State * * from General Gain/(Loss) from Disaster Employees from * * Revenue Fund from Disaster Management Fund FY 2000 * * 0001 Management Fund in the Texas * * in the Texas Treasury * * Treasury Safekeeping * * Safekeeping Trust Company * * Trust Company * * 2001 $0 $0 $0 0.0 * * 2002 (13,354,110) 13,354,110 (13,354,110) 0.0 * * 2003 (13,138,857) 13,138,857 (13,138,857) 0.0 * * 2004 (13,138,857) 13,138,857 (13,138,857) 0.0 * * 2005 (13,138,857) 13,138,857 (13,138,857) 0.0 * * 2006 (13,138,857) 13,138,857 (13,138,857) 0.0 * *************************************************************************** Technology Impact Technology impact would be limited to microcomputers, related equipment and software. Fiscal Analysis The bill would establish a Disaster Management Fund to provide disaster assistance to victims and political subdivisions when there is no Presidential disaster declaration or a Presidential declaration does not address certain categories of assistance. The Disaster Management Fund would be a trust fund in the Texas Treasury Safekeeping Trust Company. The fund would consist only of any money appropriated to the fund. The fund would also be used to pay the administrative expenses of the Emergency Management Service (EMS) within the Department of Public Safety for expenses related to emergency management training for state agencies and political subdivisions, expenses incurred in implementation of statewide mutual aid assistance, and expenses for implementation of a statewide notification system. The bill would take effect immediately if it receives a vote of two-thirds of all the members elected to each house, otherwise it would take effect September 1, 2001. Methodology The fiscal note table assumes that the fund would be appropriated a sufficient balance to fund the estimated disaster expenses. EMS estimates that the implementation of the bill would have the following costs to the state: a) debris removal, repair or replacement of highways or streets, and water control structures would cost the state $6,525,785 annually, b) assistance to individuals and households would cost $1,419,431 annually, c) post-disaster mitigation would cost $1,589,043 annually, d) the state and local government training program authorized would cost $2,078,000 annually, and e) the implementation of a statewide notification system would cost $800,000 annually. EMS estimates that the bill would require 16 additional staff in the Division of Emergency Management of the Department of Public Safety to administer the funds and provide the aid and training specified. Two Program Administrators, one Planner, one Emergency Technician, two Administrative Technicians I, two Accounting Clerks IV, one Auditor, and two Administrative Technicians II would be responsible for the administrative responsibilities of the bill. Five Program Specialists II would be stationed in the field and provide mutual aid assistance and emergency management training. It is estimated that the annual salary expense for the new employees would be $365,444 with associated benefits of $103,347. Ongoing costs related to travel, rent and operational expenses would cost $257,807 annually. Computers for the new personnel would result in a one-time cost of $44,706 in fiscal year 2002. Equipment costs would occur twice, first in fiscal year 2002 when the cost would be $170,547, and again in fiscal year 2006 to replace aging equipment when the cost would be $44,706. The second table represents the expected fiscal effects were the bill to take place immediately. It is estimated that there would be no additional fiscal impact by having the bill take effect immediately, due to the time necessary for EMS to hire employee, and for the Governor to authorize assistance under the parameters given in the bill. Local Government Impact The bill would authorize reimbursements to local jurisdictions for eligible damages due to disasters not declared by the President of where a Presidential declaration does not cover certain areas of assistance. Source Agencies: 301 Office of the Governor, 324 Texas Department of Human Services, 405 Texas Department of Public Safety, 304 Comptroller of Public Accounts LBB Staff: JK, JC, DG