| TO: | Honorable Frank Corte, Jr., Chair, House Committee on Defense Affairs & State-Federal Relations |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB865 by Goolsby (Relating to benefits for survivors of certain members of the United States armed forces.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2006 | ($7,650,000) |
| 2007 | ($2,200,000) |
| 2008 | ($2,200,000) |
| 2009 | ($2,200,000) |
| 2010 | ($2,200,000) |
| Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
|---|---|
| 2006 | ($7,650,000) |
| 2007 | ($2,200,000) |
| 2008 | ($2,200,000) |
| 2009 | ($2,200,000) |
| 2010 | ($2,200,000) |
The bill would amend the Government Code to provide a $50,000 payment to eligible survivors of Texans who died in the line of duty in Afghanistan or Iraq after September 11, 2001. Revenues from unclaimed lottery prizes would be the first source of revenue for payments. Although this bill would not make an appropriation, it would establish the basis for an appropration. However, it is assumed that amounts for the survivor benefits will be appropriated to the Employees Retirement System.
The bill would amend Section 481.078 by adding Subsection (c-1) to reallocate the use of funds from the Texas Enterprise Fund rather than making a new appropriation for payment of benefits, to the extent that revenues from unclaimed lottery prizes are insufficient to pay for these benefits.
The bill would amend Section 466.408(b) to establish payment of benefits under Subchapter G (Survivors of certain military veterans) as number one priority for the use of unclaimed lottery prizes and moves funding for the Department of State Health Services state-owned-multi-categorical teaching hospital to priority number two and moves funding for the Health and Human Services Commission inpatient hospital services among hospitals located near the Texas-Mexico border to priority number three.
The bill would make minor changes to reflect name changes resulting from the consolidation of the Department of Mental Health and Mental Retardation into the newly organized Department of State Health Services.
The U.S. Department of Defense reports that nine Texas residents have died while serving in the military in Afghanistan and 144 have died in Iraq through March 2, 2005. It is assumed that all qualified recipients will apply for and receive the appropriate payment under the terms of this bill.
For fiscal year 2006, the loss to General Revenue is based on the death of 153 military personnel from Texas (between 9/11/01 and 3/2/05) times $50,000 paid to one survivor or the pro rata portion of that amount to the eligible survivors of the individual.
For fiscal years 2007 through 2010, the loss to General Revenue is based on the average annual death rate of 44 military personnel from Texas times $50,000 paid to one survivor or the pro rata portion of that amount to the eligible survivors of the individual. Assuming that the rate remains constant, the actual impact would be $2.2 million in fiscal years 2007 through 2010.
The losses to the General Revenue Fund described above are based on the assumption that the amounts would be appropriated to ERS to pay survivors of military personnel, therefore these amounts would not be available to transfer to the General Revenue Fund.
| Source Agencies: | 301 Office of the Governor, 304 Comptroller of Public Accounts, 327 Employees Retirement System, 362 Texas Lottery Commission, 529 Health and Human Services Commission, 537 Department of State Health Services
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| LBB Staff: | JOB, KJG, MS, JW
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