LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
Revision 1
 
April 17, 2003

TO:
Honorable Allan Ritter, Chair, House Committee on Pensions & Investments
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB2358 by Deshotel (Relating to the establishment of credit in the Employees Retirement System of Texas for military service.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB2358, As Introduced: a negative impact of ($1,007,982) through the biennium ending August 31, 2005.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004 ($503,991)
2005 ($503,991)
2006 ($503,991)
2007 ($503,991)
2008 ($503,991)




Fiscal Year Probable Savings/(Cost) from
GENERAL REVENUE FUND
1 		Probable Savings/(Cost) from
GR DEDICATED ACCOUNTS
994 		Probable Savings/(Cost) from
OTHER SPECIAL STATE FUNDS
998 		Probable Savings/(Cost) from
FEDERAL FUNDS
555
2004 ($503,991) ($52,884) ($5,620) ($180,684)
2005 ($503,991) ($52,884) ($5,620) ($180,684)
2006 ($503,991) ($52,884) ($5,620) ($180,684)
2007 ($503,991) ($52,884) ($5,620) ($180,684)
2008 ($503,991) ($52,884) ($5,620) ($180,684)

Fiscal Year Probable Savings/(Cost) from
STATE HIGHWAY FUND
6
2004 ($137,925)
2005 ($137,925)
2006 ($137,925)
2007 ($137,925)
2008 ($137,925)

Fiscal Analysis

This bill would allow members of the retirement system to purchase military service for service in the Texas National Guard or the reserves of the U.S. Armed Forces at a rate of one month for each three months served.  Currently, members can purchase military service for active federal duty as a member of the Armed Services of the United States. Because the state is required to provide the 6 percent retirement contribution for any service purchased by members of the retirement system, this bill could cause an increase in state contribution costs.

Methodology

During the past two years, the state retirement contribution for the purchase of active military service has averaged $1,762,108.  Assuming that purchases of Texas National Guard and reserve service cost 50 percent of the amount for active military service, the estimated biennial cost of the increased state contribution from All Funds would be $1,762,210, and the estimated cost to the General Revenue Fund would be $1,007,983. 


Technology

None.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts, 327 Employees Retirement System, 406 Texas Military Facilities Commission
LBB Staff:
JK, JO, RR, ZS, MS