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