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F I S C A L I M P A C T R E P O R T

SPONSOR Campos

ORIGINAL DATE

LAST UPDATED 8-15-08 HB 6

SHORT TITLE 2008 General Election Costs

SB

ANALYST Ortiz

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$1,637.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

House Bill 6

appropriates $1.637 million from the general fund to the Secretary of State for the

purpose of paying the costs of the 2008 general election.

FISCAL IMPLICATIONS

The appropriation of $1,637 million contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall

revert to the general fund.

SIGNIFICANT ISSUES

Paper ballots account for $2.3 million, or nearly 42 percent of the agency’s general election

expenses. The agency reported earlier this year at a Board of Finance meeting and later at a

Legislative Finance Committee (LFC) hearing that it orders ballots based on 150 percent of

eligible voters turning out to vote. This method, which was used for the primary resulted in

approximately one million ballots going unused because voter turnout followed the six year

historical trend of 27 percent (in general elections the six year historical trend is 49 percent and

when looking at turnout for the past two presidential elections it is 54 percent).

House Bill 6 – Page

2

The LFC recommended the agency develop a methodology for ordering ballots that would be

more in line with historical turnout yet provide reasonable padding to that figure so as to address

spoiled ballots and a possible increase in turnout. The agency is working on a methodology but

is still compiling voter turnout history by precinct. Precinct history is necessary because ballot

content is not the same statewide and the agency’s paper ballot vendor charges fees for the

changes and requires a minimum order of 100 ballots. Once the agency completes this project its

projected cost will have a more solid foundation.

The second issue is that at a 2008 Board of Finance meeting the agency presented its 2008

general election expenses to be $5.376 million citing a $1.5 million shortfall, a difference of

$117 thousand from its current projection of $1.637 million. The agency is requesting funds for

optional items including advertising by the Secretary of State, a regional presiding judge training

(county clerks already provide this training) and extra temporary employees for its

communication room.

OTHER SUBSTANTIVE ISSUES

The agency received a $3 million special appropriation for 2008 general election costs during the

2008 regular session and the agency reports that its operating budget includes $411 thousand for

2008 general election expenses.

ALTERNATIVES

Allow the agency the opportunity to continue compiling its data on turnout so it can apply it to a

funding formula that reduces the number of ballots destroyed and request a supplemental for

2008 general election costs.

Make an appropriation contingent on Board of Finance approval with a requirement for the

Secretary of State to provide a methodology for its paper ballot order.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

As in the past, the agency will request a supplemental to cover its shortfall.

EO/svb