LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 3, 2001 TO: Honorable Joe Driver, Chair, House Committee on Constitutional Revision, Select FROM: John Keel, Director, Legislative Budget Board IN RE: HJR69 by Junell (Proposing a constitutional amendment relating to certain operations of state and local government.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HJR69, Committee Report 1st House, Substituted: negative impact * * of $(80,000) through the biennium ending August 31, 2003. * ************************************************************************** The resolutions proposes a constitutional amendment affecting various provisions of the state constitution. General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(80,000) * * 2003 0 * * 2004 (125,000) * * 2005 0 * * 2006 (127,500) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) * * Year General Revenue Fund from General Revenue Fund * * 0001 0001 * * 2002 $(80,000) $0 * * 2003 0 0 * * 2004 0 (125,000) * * 2005 0 0 * * 2006 0 (127,500) * *************************************************************************** Fiscal Analysis The following provisions of the bill could have fiscal implications: Creating staggered four-year terms for members of the House of Representatives, and staggered six-year terms for Senators would result in the loss of filing fee revenue. The proposed bill would create the Texas Salary Commission which would set maximum compensation for officers in the executive branch, judges and justices, and set the compensation of the members of the legislature. The current compensation for members of the legislature would continue until the Salary Commission set new legislative salaries. Operating expenses of the commission would be an additional cost to the state. The bill would allow the legislature to grant property tax exemptions and relief. Under the current constitution, a constitutional amendment is necessary to provide new property tax exemptions. Methodology The estimate of revenue losses shown above are from lost filing fees resulting from six-year terms for the Senate and four-year terms for the House of Representatives. The estimate above does not include estimates of future actions of the Salary Commission. The cost of publication would be $80,000. Local Government Impact The bill would prohibit political subdivisions that did not impose a property tax on or before September 1, 2001 from imposing a property tax without voter approval. Political subdivisions would be prohibited from issuing general obligation bonds (except refunding bonds) without voter approval and from providing for repayment of the bonds. The authority of the legislature to grant property tax exemptions could have an impact on units of local governments. Source Agencies: 307 Secretary of State LBB Staff: JK, TB, WP, RS