Honorable Jim McReynolds, Chair, House Committee on Corrections
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB137 by Gonzalez Toureilles (Relating to compensatory time accrued by a correctional officer employed by the Texas Department of Criminal Justice.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB137, As Introduced: a negative impact of ($18,902,151) through the biennium ending August 31, 2011.
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
2010
($18,902,151)
2011
$0
2012
$0
2013
$0
2014
$0
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
2010
($18,902,151)
2011
$0
2012
$0
2013
$0
2014
$0
Fiscal Analysis
The bill would require the Department of Criminal Justice (TDCJ) to pay correctional officers for unused overtime, if the correctional officer has a satisfactory performance evaluation and has not been subject to disciplinary action during the preceding 12 months. The bill would require the Texas Department of Criminal Justice to make the payment on the anniversary of the date on which the correctional officer began employment.
Methodology
The estimate assumes that TDCJ correctional officers would receive a one-time payment for overtime worked but not previously paid. TDCJ correctional officers would be paid for hours worked at the overtime rate of hours worked multiplied by 1.5. The agency reports that correctional officers, including food service and laundry managers, and correctional officer sergeants have 1,153,689 hours of banked overtime. Using the average hourly rate, the payment for accrued overtime would be approximately $18.9 million during fiscal year 2010. Beginning January 2007, the Texas Department of Criminal Justice was required to pay employees subject to the overtime provisions of the federal Fair Labor Standards Act for accrued overtime in the month the employee accrued the overtime. There would be no overtime hours banked beyond this one time payout.
Local Government Impact
No fiscal implication to units of local government is anticipated.