LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
Revision 2
March 27, 2001
TO: Honorable David Sibley, Chair, Senate Committee on
Business & Commerce
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB578 by Madla (Relating to the provision of emergency
communication services.), Committee Report 1st House,
Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB578, Committee Report 1st House, Substituted: positive impact *
* of $0 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 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
**************************************************************************
*Fiscal Probable Revenue Probable Change in Number of *
* Year Gain/(Loss) from 911 Savings/(Cost) from State Employees from *
* Service Fees/ GR 911 Service Fees/ GR FY 2001 *
* Dedicated Dedicated *
* 5050 5050 *
* 2002 $36,839,333 $(17,843,081) 40.0 *
* 2003 11,852,364 (22,492,364) 40.0 *
* 2004 12,856,647 (12,856,647) 40.0 *
* 2005 13,860,930 (13,860,930) 40.0 *
* 2006 14,865,213 (14,865,213) 40.0 *
**************************************************************************
Fiscal Analysis
The bill would require the Commission on State Emergency Communications
to install, operate and maintain an Emergency Telephone Call Box System
along roads that are part of the national highway system or that are
numbered state highways in cooperation with the Texas Department of
Transportation (TxDOT). Funding for the emergency call box system by
State Highway Fund No. 006 is prohibited. The bill would require the
Commission on State Emergency Communications to submit a report
concerning call box program activities to the Lieutenant Governor, the
Speaker of the House of Representatives, and the Legislative Budget Board
by November 1 of each year.
The bill transfers the administrative responsibility of the state 9-1-1
program from the Councils of Government to the Commission on State
Emergency Communications.
Finally, the bill requires the Commission on State Emergency
Communications to develop and fully implement the wireless 9-1-1
improvements required by the Federal Communications Commission by
September 1, 2007.
This bill would take effect on September 1, 2001.
Methodology
TxDOT assumes that 19,111 call boxes would be installed between 2002 and
2011, with 9,556 call boxes installed over the next five fiscal years.
Assumptions in estimating the cost include a cost of $4,000 per call box;
a 7 percent knockdown rate with a repair cost of $1,250 per knockdown;
annual air-time costs of $120 per box; a 6 percent vandalism rate with a
cost of $300 per vandalized unit; and maintenance costs of $300 per unit.
Total cost to implement the system is an estimated $150.6 million.
TxDOT estimates annual maintenance and operation costs, when the system
is fully implemented, would be approximately $13.5 million per year.
The Commission on State Emergency Communications estimates that their
responsibilities under this bill for the administration of an emergency
call box system would require the addition of two Telecommunications
Specialist staff and related operating costs. The initial cost of these
positions is $99,727; $96,127 in fiscal year 2003; and $98,041 in each
fiscal year thereafter. Because the bill prohibits the use of State
Highway Fund No. 006 revenues for this purpose, it is assumed that all
expenses associated with implementation of the emergency call box system
would be funded out of the General Revenue-Dedicated Account No. 5050,
9-1-1 Services Fee.
It is estimated that an additional thirty-eight positions and recurring
operating costs of $2,199,398 would be required by the Commission to
assume direct administrative responsibility for the state 9-1-1 service
program. Currently, the Councils of Government are budgeted 121
positions to perform the functions this bill would transfer to the
Commission. These additional staff would be devoted to three different
areas of responsibility: 9-1-1 operations, financial management and
training/public education. The 9-1-1 operations staff would be
responsible for the equipment, network and database needed to maintain
and deliver the existing 9-1-1 service to the 354 public safety answering
points and 1,300 local governments that perform call taking and
emergency response functions. In addition, this group would perform
compliance monitoring and contract administration for the existing over
700 interlocal and other contracts for 9-1-1 services. The financial
staff would develop and monitor budgets for each 9-1-1 entity, perform
revenue collection and accounts payable functions, and maintain
inventories and replacement schedules for the capital equipment located
at public safety answering points and agencies. The training/public
education staff would develop and provide 9-1-1 call taker training.
Currently all existing commission administrative costs for the statewide
9-1-1 program are funded by a 0.3 percent surcharge on intrastate long
distance charges. This surcharge is deposited to the General
Revenue-Dedicated Account No. 5007, Advisory Commission on State
Emergency Communications. Surcharge revenue is expected to decrease by
19% in the 2002-2003 biennium due to increased use of cell phones for
long distance service. The proposed legislation would allow all
administrative costs for the statewide 9-1-1 program to be funded by
emergency and wireless service fees.
All balances in 9-1-1 revenues held outside the State Treasury by the
Councils of Government, including emergency and wireless service fees
(an estimated $6,302,713) and balances in funds set aside to replace
9-1-1 capital equipment at the public safety answering points (an
estimated $19,433,539), would be brought into the State Treasury. This
creates a one-time revenue gain in fiscal year 2002 of an estimated
$25,736,252. An estimated $17,380,000 of the capital replacement funds
would be spent on 223 scheduled replacements of equipment at 9-1-1 call
taking centers during the 2002-03 biennium.
Local Government Impact
This bill would remove the Councils of Government from the administration
of the state 9-1-1 program and transfer these responsibilities to the
Commission on State Emergency Communications. Currently, the Councils of
Government receive over $29.3 million per year in emergency and wireless
service fees, and supplemental funding of an additional $5.0 million per
year in 9-1-1 equalization surcharge revenue to administer the state
9-1-1 program. Under the provisions of this bill, these revenues would
be retained by the state and used by the Commission on State Emergency
Communications to directly administer the state 9-1-1 program.
Currently, the Councils of Government have an estimated 121 positions
that administer the 9-1-1 program within each regional area. Based on
this bill, these positions and any administrative costs associated with
the statewide 9-1-1 program would no longer be needed.
This bill would require home-rule cities that operate independent 9-1-1
emergency communications systems to provide a biennial financial report
to the Commission on State Emergency Communications on January 31st each
year preceding a legislative session.
Source Agencies: 304 Comptroller of Public Accounts, 477
Commission on State Emergency Communications, 601
Texas Department of Transportation
LBB Staff: JK, JO, SD, ZS