LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 28, 1997
TO: Honorable Fred M. Bosse, Chair IN RE: House Bill No. 733
Committee on Land and Resource Management By: Raymond
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB733 ( Relating
to the lease of certain state facilities.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by HB733-As Introduced
Implementing the provisions of the bill would result in a
net positive impact of $1,146,000 to General Revenue Related
Funds through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend Subchapter E of the Government Code to
establish a pilot program to develop private, commercial uses
for state-owned parking lots and garages in the city of Austin
near areas where entertainment businesses are concentrated.
The bill would allow the General Services Commission (GSC)
to contract with a private vendor to manage the commercial use
of state-owned parking facilities. All of the proceeds collected
under this pilot program would be deposited to the credit of
the General Revenue Fund. The bill would require GSC to submit,
on or before December 1 of each even-numbered year, a report
to the Legislature and to the Legislative Budget Board describing
the effectiveness of the pilot program. The bill would remove
certain limitations on leasing building space to private tenants
and require the GSC to prescribe rules relating to short-term
leases with private tenants.
Under current law, all of
the money received from a lease under Subchapter E may be used
by the GSC for the performance of building and property services.
This bill would reduce the GSC dedication to 50 percent while
excluding from dedication all revenues generated by the pilot
program.
Methodolgy
It is estimated that the pilot parking project would include
1,133 parking spaces and would generate an estimated $424,000
a year for the General Revenue Fund, beginning in fiscal year
1998.
In addition, it is estimated that short-term leasing
of underused space would generate $298,000 annually. This estimate
assumes that 10 percent of the available conference and training
rooms in GSC s state-owned buildings in Austin would be leased
once a year. The bill would allow GSC to use one-half of the
revenue for building and property services performed by GSC.
This estimate assumes that the remaining revenue, or $149,000
per year, would be deposited in the General Revenue Fund.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue Change in Number
Gain/(Loss) from of State
General Revenue Employees from
Fund FY 1997
0001
1998 $573,000 0.0
1998 573,000 0.0
2000 573,000 0.0
2001 573,000 0.0
2002 573,000 0.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $573,000
1999 573,000
2000 573,000
2001 573,000
2002 573,000
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 304 Comptroller of Public Accounts
303 General Services Commission
LBB Staff: JK ,BB ,RN