LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 26, 2001
TO: Honorable Carlos F. Truan, Chair, Senate Committee on
Veteran Affairs & Military Installations
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1163 by Truan (Relating to creation of the Texas
Veterans Cemetery System.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1163, As Introduced: negative impact of $(677,596) 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. *
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The following estimate assumes the cost of seven partially operational
cemeteries spread geographically across the state through 2006.
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 (677,596) *
* 2004 (677,596) *
* 2005 (677,596) *
* 2006 (1,185,492) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Change in Number of *
* Year Savings/(Cost) from Savings/(Cost) from State Employees from *
* General Revenue Fund Federal Funds - FY 2001 *
* 0001 Federal *
* 0555 *
* 2002 $0 $0 0.5 *
* 2003 (677,596) (3,600,000) 0.5 *
* 2004 (677,596) 0 0.5 *
* 2005 (677,596) (2,700,000) 0.5 *
* 2006 (1,185,492) 0 0.5 *
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Fiscal Analysis
The bill would establish veterans cemeteries in different locations
across the state. The General Land Office (GLO) Veterans Land Board would
be responsible for the operations of the cemeteries including
maintenance and developing guidelines for site selection of the
cemeteries. The Texas Historical Commission would review and approve all
plans, programs, and materials relating to the interpretation of
historical features of the system and the GLO would conform to guidelines
for historic preservation. The bill would allow GLO to accept gifts,
grants, money, securities, services, or property for the cemeteries.
According to the GLO, the Department of Veterans Affairs limits its
funding for veterans cemeteries to establishing, expanding, or improving
a cemetery. Any and all costs associated with land acquisition,
administration, operation, and maintenance of the cemeteries are the sole
responsibility of the state.
Methodology
The GLO excluded any costs for land acquisition in its cost estimate of
the legislation based on information from local communities regarding
donation of land for the cemeteries. According to the GLO, local
communities from at least seven geographic regions in the state have
expressed interest in land donation for the cemeteries. As a result, the
GLO does not anticipate any costs associated with the purchase of land
for the cemeteries.
According to the GLO, the Department of Veterans Affairs estimates each
cemetery would receive between $700,000 and $1.1 million (variance due to
geographic location) for the establishment of a cemetery with 1,000
plots. The average of these two numbers, $900,000, was used for the
development cost of each cemetery.
The cost estimate assumes fiscal year 2002 would be used for the federal
grant application process. Development costs are assumed (federal funds)
for four cemeteries in fiscal year 2003 and three cemeteries in fiscal
year 2005.
The GLO estimates it would need approximately $3.884 million each year
for operating costs associated with seven fully-operational cemeteries
($554,996 each year for each cemetery). The GLO based its estimate on
cemeteries with 1,000 plots. These costs are based on the feasibility
study conducted by the Texas Veterans Commission in 1998 (State Veterans
Cemetery Feasibility Study).
Operating costs (General Revenue Funds) are assumed for four partially
operational cemeteries, defined as less than 100 percent occupied
resulting in less operating costs, in fiscal years 2003, 2004 and 2005.
The estimate for fiscal years 2003, 2004 and 2005 assumes operational
costs at 30 percent of the total for the four cemeteries. Three
additional cemeteries are estimated to be partially operational by fiscal
year 2006, for a total of seven cemeteries. The estimate for fiscal year
2006 assumes operational costs at 30 percent of the total for seven
cemeteries.
The Texas Historical Commission estimates it would need approximately
$20,000 and 1/2 an FTE a year to review plans and materials for the
cemeteries and to cover travel expenses associated with cemetery
inspections as mandated by the legislation. Consistent with costs
estimated for operation, the estimate assumes $11,600 in fiscal years
2003, 2004, and 2005 associated with the review of and travel to four
cemeteries. The full $20,000 associated with review and travel to seven
cemeteries is assumed in 2006.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 305 General Land Office, 808 Texas Historical
Commission
LBB Staff: JK, RB, JC