LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 21, 2001 TO: Honorable Rodney Ellis, Chair, Senate Committee on Finance FROM: John Keel, Director, Legislative Budget Board IN RE: SB435 by Staples (Relating to the amount of hazardous duty pay for certain state employees.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB435, As Introduced: negative impact of $(132,316,508) 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 $(66,158,254) * * 2003 (66,158,254) * * 2004 (66,158,254) * * 2005 (66,158,254) * * 2006 (66,158,254) * **************************************************** All Funds, Five-Year Impact: *********************************************************************** *Fiscal Probable Probable Probable Probable Change in * * Year Savings/ Savings/ Savings/ Savings/ Number of * * (Cost) from (Cost) from (Cost) from (Cost) from State * * General Game, Fish State Parks Various Employees * * Revenue and Water Account/ General from FY 2001 * * Fund Safety GR- Revenue * * 0001 Account/ Dedicated Dedicated * * GR- 0064 * * Dedicated * * 0009 * * 2002 $(274,801) $(412,201) 0.0 * * $(66,158,$(1,854,904) * * 254) * * 2003 (1,854,904) (274,801) (412,201) 0.0 * * (66,158,254) * * 2004 (1,854,904) (274,801) (412,201) 0.0 * * (66,158,254) * * 2005 (1,854,904) (274,801) (412,201) 0.0 * * (66,158,254) * * 2006 (1,854,904) (274,801) (412,201) 0.0 * * (66,158,254) * *********************************************************************** Fiscal Analysis The bill would increase the rate of hazardous duty pay from $7.00 to $25.00 a month for each year of service in a position that requires the performance of hazardous duty, not to exceed 30 years of such service. The bill would take effect September 1, 2001. Methodology The Comptroller of Public Accounts reports that $23,507,901 of hazardous duty pay was issued during fiscal year 2000. Dividing by $7 and multiplying by $25 gives an estimate of the amount of hazardous duty pay that would have been issued if the bill had been in affect ($83,956,788). Subtracting the original amount ($23,507,901) gives the net impact of the bill in terms of hazardous duty pay. Benefits add 13.65% to the total estimated fiscal impact of the bill ($68,700,160). This difference is assumed for all years shown. The actual amounts would be affected by changes in the number of individuals receiving hazardous duty pay and their average years of service. The increased costs are attributed to various accounts based on the sources of hazardous duty payments during fiscal year 2000. Although $2,655,762 in hazardous duty payments were made from the State Highway Fund during fiscal year 2000, projected increases were attributed to the General Revenue Fund. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 405 Texas Department of Public Safety, 694 Texas Youth Commission, 458 Texas Alcoholic Beverage Commission, 696 Texas Department of Criminal Justice, 802 Texas Parks and Wildlife Department, 304 Comptroller of Public Accounts LBB Staff: JK, SD, VS