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F I S C A L I M P A C T R E P O R T
SPONSOR T. Garcia
ORIGINAL DATE
LAST UPDATED
1/31/07
HB 564
SHORT TITLE Guadalupe County Prisoner Expenses Loan
SB
ANALYST Propst
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$100.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Finance and Administration (DFA)
SUMMARY
Synopsis of Bill
House Bill 564 makes an appropriation of $100.0 from the General Fund to the State Board of
Finance to repay an emergency load to Guadalupe County to house prisoners.
FISCAL IMPLICATIONS
The appropriation of $100.0 contained in this bill is a recurring expense to the General Fund.
Any unexpended or unencumbered balance remaining at the end of FY08 shall revert to the
General Fund.
SIGNIFICANT ISSUES
DFA reports that, historically, smaller counties have difficulty meeting the high cost of
incarcerating prisoners. In 2004 Guadalupe County obtained an emergency loan for $110.0 from
the State Board of Finance. Since then, the county has imposed a Corrections Gross Receipts
Tax, and has implemented alternatives to incarceration with the Ankle Bracelet Program, the
Video Arraignment Program and the Misdemeanor Compliance Program. These initiatives have
helped the County toward financial soundness and on November, 2006 the County requested the
State Board of Finance put them on a five year repayment plan.
pg_0002
House Bill 564 – Page
2
ALTERNATIVES
DFA notes that, in addition to Guadalupe County, other smaller counties have also borrowed
money from the State Board of Finance to pay for escalating incarceration costs. The counties
are forced to do this in order to continue operating and meeting required services to county
citizens. In all likelihood, these counties do not have the revenue sources required to meet these
recurring costs.
A more appropriate remedy for the future may be to appropriate recurring funding to smaller
counties, such as proposed in Senate Bill 410 or House Bill 316 which establish a County
Detention Facility Reimbursement Fund.
WEP/csd