| TO: | Honorable Jeff Wentworth, Chair, Senate Committee on Jurisprudence |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | SB600 by Duncan (Relating to compensation paid to statutory county court judges and certain fees collected by statutory county courts.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | $790,000 |
| 2009 | $790,000 |
| 2010 | $790,000 |
| 2011 | $790,000 |
| 2012 | $790,000 |
| Fiscal Year | Probable Revenue Gain/(Loss) from JUDICIAL FUND 573 |
Probable Savings/(Cost) from JUDICIAL FUND 573 |
Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
|---|---|---|---|
| 2008 | $624,000 | ($6,570,000) | $790,000 |
| 2009 | $749,000 | ($7,933,000) | $790,000 |
| 2010 | $749,000 | ($7,933,000) | $790,000 |
| 2011 | $749,000 | ($7,933,000) | $790,000 |
| 2012 | $749,000 | ($7,933,000) | $790,000 |
The bill would amend the Government Code, Chapter 25 to require the state to pay an annual salary supplement to all statutory county court judges. In addition, the bill would increase the annual salary supplement from $35,000 to an amount equal to 60 percent of a district court judge's salary, or $75,000. The bill would require all counties to collect the fees and court costs supporting the salary supplement program.
According to the Judiciary Section, Comptroller's Department, there are not sufficient revenues to the Judicial Fund No. 573 to pay the estimated costs of the additional salary supplements, as shown in the table above. Therefore, the bill would create an unfunded expense for the state in the amount of $6,570,000 in fiscal year 2008 and $7,933,000 in fiscal year 2009.
The bill would repeal the requirements that the General Revenue Fund 0001 pay $5,000 of each salary supplement and that excess contributions to the Judicial Fund 0573 be paid to counties. The bill would make conforming amendments and repeals.
The bill would take effect October 1, 2007.
According to the Judiciary Section, Comptroller’s Department, there are 218 statutory county courts, of which only 22 do not participate in the salary supplement program. The bill would require all counties to participate in the program and collect the fees and court costs to pay for the salary supplements. The bill would increase the salary supplement to 60 percent of the salary paid to a district court judge, or from $35,000 to $75,000, and remove the general revenue funding of $5,000 per supplement.
The portion paid by Fund 0001, $790,000 in obligations, would shift in obligation to the Judicial Fund 0573 by a like amount. The Judiciary Section of the Comptroller's Office estimates the total cost of the salary supplements to be $16,350,000 in a full year and $14,988,000 in the first year, a portion of which are already paid under state law. Of these amounts, there are sufficient revenues to cover costs of only $8,417,000 in a full year and $8,418,000 in the first year resulting in deficits in the account as shown above of $7,933,000 in a full year and $6,570,000 in the first year.
Currently, the program runs a surplus. Approximately $8.5 million is generated in revenue, $5.9 million of which is paid out in salary supplements from Fund 0573, with the remaining $2.6 million returned to the counties as excess contributions. This bill would pay the salary supplements with the excess contribution. The incremental costs, savings, and revenue are listed in the tables. Under the bill, Fund 0573 would run a deficit equal to the net of the probable costs and the revenue gained.
| Source Agencies: | 212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, MN, ZS, TB
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