LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
 
May 7, 2003

TO:
Honorable Teel Bivins, Chair, Senate Committee on Finance
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
SB1369 by Duncan (Relating to certain group benefits for retired school employees.), Committee Report 1st House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for SB1369, Committee Report 1st House, Substituted: an impact of $0 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.

Estimated savings should be compared to funding levels sufficient to conform to current policies and law. Estimated savings should not be compared to agency "building block" funding requests.




Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004 $0
2005 $0
2006 $0
2007 $0
2008 $0




Fiscal Year Probable Revenue Gain/(Loss) from
OTHER FUNDS
997
2004 $152,133,072
2005 $161,869,589
2006 $172,229,242
2007 $183,251,914
2008 $194,980,037

Fiscal Analysis

The bill would amend the statutes governing the Teacher Retirement System's group insurance program for public education retired employees.  The provisions in the bill would have a direct fiscal impact related to contributions to the retired school district employees' group insurance program. 


Methodology

Increasing the active public education employees' contribution to 0.50 percent from 0.25 percent would generate $110.6 million to the Teacher Retirement System' trust fund, shown as "Other Funds" above, for the retired public education employees' insurance program over the 2004-2005 biennium. Establishing a school district contribution of 0.46 percent of payroll, the contribution assumed in the Senate version of the proposed General Appropriations Act, would generate approximately $203.4 million to the TRS retiree insurance fund over the 2004-2005 biennium. 

This fiscal note does not reflect the fiscal impact which may result from the TRS trustees establishing a different insurance program for retired public education employees than the one currently in use.

The bill would also transfer $42 million from the TRS insurance fund for active school district employees to the TRS retiree insurance program. Because this would be an inter-fund transfer, it has no fiscal impact to the state.


Local Government Impact

School districts would contribute $203.4 million during the 2004-2005 biennium to the TRS-Care insurance fund.


Source Agencies:
323 Teacher Retirement System
LBB Staff:
JK, WP, JO, SD, UP, RN