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F I S C A L I M P A C T R E P O R T
SPONSOR King
DATE TYPED 2/15/05
HB 893
SHORT TITLE Torrance County Incarceration Costs
SB
ANALYST Hadwiger
APPROPRIATION
(in $000s)
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$500.0
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 893 appropriates $500,000 from the general fund to the Department of Finance and
Administration to pay for incarceration costs in Torrance County in FY06.
Significant Issues
According to the Department of Finance and Administration (DFA), as of September 30, 2004
the detention fund in Torrance County was overspent by $303,967. The limited General Funds
available could not cover detention expenditures at the rate they are increasing without additional
revenue. Torrance County has done everything possible to reduce the detention cost. This in-
cludes the implementing additional gross receipts taxes that became effective January 01, 2005.
With current projected revenues and expenditures, the County will not have sufficient revenues
to cover the escalating detention expenditures.
FISCAL IMPLICATIONS
The appropriation of $500,000 contained in this bill is a recurring expense to the general fund.
pg_0002
House Bill 893 -- Page 2
Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-
eral fund.
ADMINISTRATIVE IMPLICATIONS
DFA indicated the Corrections Department has the expertise to administer this.
OTHER SUBSTANTIVE ISSUES
Torrance County is in the midst of a severe budget crisis that has resulting in layoff of sheriff’s
deputies and other spending cuts, as well as revenue increases. In October 2004, the Board of
Finance voted to loan $131,000 to Torrance County to maintain public safety programs.
DH/yr