LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
 
April 25, 2007

TO:
Honorable Vicki Truitt, Chair, House Committee on Pensions & Investments
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB3330 by Haggerty (Relating to eligibility for custodial officer service in the Employees Retirement System of Texas by certain juvenile correctional officers employed by the Texas Youth Commission.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB3330, As Introduced: a negative impact of ($2,209,401) through the biennium ending August 31, 2009.

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
2008 ($1,083,040)
2009 ($1,126,361)
2010 ($1,171,416)
2011 ($1,218,272)
2012 ($1,267,003)




Fiscal Year Probable (Cost) from
GENERAL REVENUE FUND
1 		Probable (Cost) from
OTHER SPECIAL STATE FUNDS
998 		Probable (Cost) from
FEDERAL FUNDS
555 		Probable (Cost) from
STATE HIGHWAY FUND
6
2008 ($1,083,040) ($13,135) ($3,582) ($94,333)
2009 ($1,126,361) ($13,660) ($3,726) ($98,106)
2010 ($1,171,416) ($14,207) ($3,875) ($102,031)
2011 ($1,218,272) ($14,775) ($4,030) ($106,112)
2012 ($1,267,003) ($15,366) ($4,191) ($110,356)

Fiscal Analysis

The bill would provide for benefit provisions under the Law Enforcement and Custodial Officers Supplemental (LECOS) Retirement plan to include certain juvenile correctional officers employed at the Texas Youth Commission. 

The bill would take effect September 1, 2007 and would not apply to juvenile correctional officers employed by the Texas Youth Commission who retired prior to September 1, 2007.


Methodology

The costs included in the tables above assume an increase in the number of employees covered by LECOS by 2,402 and increases in the projected fiscal year 2008 valuation payroll of LECOS for these employees by $75.1 million. The calculation reflects 1.59 percent of the $75.1 million payroll.

Assuming the state would fund the contribution rate required to achieve the 31-year funding period, the cost is estimated at $20.7 million in General Revenue in fiscal year 2008 and $21.5 million in General Revenue in fiscal year 2009. Enactment of the bill without sufficient funding to achieve the 31-year funding period would violate statutory funding requirements.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
327 Employees Retirement System
LBB Staff:
JOB, KJG, MS, JW