LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 8, 1997
TO: Honorable Bill Ratliff, Chair IN RE: House Bill No. 107,
As Engrossed
Committee on Finance By: Giddings
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB107 ( Relating
to specialized license plates to support an elementary student
reading program.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB107-As Engrossed
Implementing the provisions of the bill would result in a net
positive impact of $1,000,000 to General Revenue Related Funds
through the biennium ending August 31, 1999.
Fiscal Analysis
The bill would amend the Transportation Code to create a new,
dedicated "Read to Succeed" Account in the General Revenue
Fund. The bill would provide for the issuance of specially
designed "Read to Succeed" license plates for passenger cars
and light trucks. The annual fee for the license plates would
be $25 plus an amount, not to exceed $5, for administrative
costs. Revenues from the $25 fee would be deposited to the
credit of the newly created account.
The bill would also
amend the Education Code to require the Commissioner of Education
to develop a program, to be called the "Read to Succeed" program,
which would provide grants to a public school that has at least
35 percent of its students in kindergarten through third grade
reading below grade level.
Methodolgy
The Department of Transportation (TxDot) estimates that as many
as 20,000 persons may apply for these plates the first year,
and 15,000 of those will renew years 2 - 5.
TxDot estimates
there will be 5,000 new applications received each year during
years 2 - 5.
The cost of the "Read to Succeed" plate is $30,
with $25 to be deposited in the Read to Succeed account in General
Revenue Fund 001 and $5 to be deposited in Fund 006.
The
cost to process, manufacture, and distribute special license
plates is $8.24 per set.
FY 1998
20,000 new applicants
X $5.00 revenue = $100,000
20,000 new plates X $8.24 = $164,800
FY
1999 and beyond
15,000 renewals X $5 revenue = $75,000
5,000
new plates X $8.24 cost = $41,200
5,000 new X $5 revenue =
$25,000
The TxDot Registration Titling System (RTS) staff
estimates that approximately 134 hours at $75 per hour will
be required, in the first year, to modify the division's automated
RTS at a cost of $10,050.
The Information System Division
at TxDot estimates it will take approximately 56.4 project
days at $203.84 per day ($25.48 per hour) of additional in-house
programming costs to complete these modifications at a cost
of 11,497 (FY 1997)
Estimated costs to the Budget and Finance
Division - $.50 per renewal. This will cover the lock-box fee
for deposited revenue and administrative costs for Budget and
Finance Division. ($7,500 per year, FY 1998 and beyond)
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Six Year Impact:
Fiscal Year Probable Revenue Probable Probable Revenue
Gain/(Loss) from Savings/(Cost) Gain/(Loss) from
General Revenue from State State Highway Fund
Fund Highway Fund
0001 0006 0006
1997 $0 ($21,547) $0
1997 500,000 (164,800) 100,000
1999 500,000 (48,700) 100,000
2000 500,000 (48,700) 100,000
2001 500,000 (48,700) 100,000
2002 500,000 (48,700) 100,000
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1997 $0
1998 500,000
1999 500,000
2000 500,000
2001 500,000
2002 500,000
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No significant fiscal implication to units of local government
is anticipated.
Source: Agencies:
LBB Staff: JK ,RR ,UP