LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 11, 2011 TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SJR24 by Watson (Proposing a constitutional amendment exempting political subdivisions from unfunded legislative mandates and authorizing the legislature to provide funding for legislative mandates on political subdivisions.), As Introduced No fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $105,495. The resolution proposes a constitutional amendment to Article III of the Texas Constitution to exempt political subdivisions from unfunded legislative mandates and authorize the legislature to provide funding for legislative mandates on political subdivisions as defined by the provisions of the bill. The proposed amendment would be submitted to voters at an election to be held November 8, 2011. Local Government Impact According to the Texas Association of Counties (TAC), the costs to counties associated with the provisions of the bill are not anticipated to be significant. TAC also stated that it is impossible to determine what, if any, savings counties may have although it is likely that cumulative savings would be significant. Because of the effective date, the fiscal impact would likely not occur until January 1, 2012 when the amendment would become effective. According to the Texas Municipal League (TML), the resolution would result in a significant positive fiscal impact on cities. There would be a fiscal impact to local governments associated with an election; however, those costs would vary by locality and are not anticipated to be significant. Based on costs reported to the Secretary of State (SOS) in 2010 by a sampling of counties, municipalities, and special districts, the average cost incurred by a local governmental entity for an election is $1.98 per registered voter. Source Agencies: LBB Staff: JOB, KK, SD, TP LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 11, 2011 TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SJR24 by Watson (Proposing a constitutional amendment exempting political subdivisions from unfunded legislative mandates and authorizing the legislature to provide funding for legislative mandates on political subdivisions.), As Introduced TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S O'Brien, Director, Legislative Budget Board IN RE: SJR24 by Watson (Proposing a constitutional amendment exempting political subdivisions from unfunded legislative mandates and authorizing the legislature to provide funding for legislative mandates on political subdivisions.), As Introduced Honorable Steve Ogden, Chair, Senate Committee on Finance Honorable Steve Ogden, Chair, Senate Committee on Finance John S O'Brien, Director, Legislative Budget Board John S O'Brien, Director, Legislative Budget Board SJR24 by Watson (Proposing a constitutional amendment exempting political subdivisions from unfunded legislative mandates and authorizing the legislature to provide funding for legislative mandates on political subdivisions.), As Introduced SJR24 by Watson (Proposing a constitutional amendment exempting political subdivisions from unfunded legislative mandates and authorizing the legislature to provide funding for legislative mandates on political subdivisions.), As Introduced No fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $105,495. No fiscal implication to the State is anticipated, other than the cost of publication. The cost to the state for publication of the resolution is $105,495. The cost to the state for publication of the resolution is $105,495. The resolution proposes a constitutional amendment to Article III of the Texas Constitution to exempt political subdivisions from unfunded legislative mandates and authorize the legislature to provide funding for legislative mandates on political subdivisions as defined by the provisions of the bill. The proposed amendment would be submitted to voters at an election to be held November 8, 2011. Local Government Impact According to the Texas Association of Counties (TAC), the costs to counties associated with the provisions of the bill are not anticipated to be significant. TAC also stated that it is impossible to determine what, if any, savings counties may have although it is likely that cumulative savings would be significant. Because of the effective date, the fiscal impact would likely not occur until January 1, 2012 when the amendment would become effective. According to the Texas Municipal League (TML), the resolution would result in a significant positive fiscal impact on cities. There would be a fiscal impact to local governments associated with an election; however, those costs would vary by locality and are not anticipated to be significant. Based on costs reported to the Secretary of State (SOS) in 2010 by a sampling of counties, municipalities, and special districts, the average cost incurred by a local governmental entity for an election is $1.98 per registered voter. Source Agencies: LBB Staff: JOB, KK, SD, TP JOB, KK, SD, TP