LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 5, 1997 TO: Honorable Bob Hunter, Chair IN RE: House Bill No. 2356, Committee Report 1st House, Substituted Committee on State, Federal & International Relations By: Davis House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2356 ( Relating to the administration of state-owned historical parks, structures, and sites by the Texas Historical Commission; making a contingent appropriation; providing penalties.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2356-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net impact of $0 to General Revenue Related Funds through the biennium ending August 31, 1999. Appropriations: The bill would appropriate the following amounts: Fiscal Year Appropriation out of New - GR Dedicated - State Historical Areas Account NEW-DED 1998 $3,500,000 1999 3,500,000 Fiscal Analysis The bill would amend sections of the Government Code and the Parks and Wildlife Code to transfer responsibility for 15 historical properties from the Texas Parks and Wildlife Department (TPWD) to the Texas Historical Commission (THC). The bill would establish the State Historical Areas Account as a special account in the General Revenue Fund to receive revenues from various sources related to operation of historic parks and sites, as specified in the bill. Money in the account could be used by the THC only for certain purposes related to historical parks, structures, and sites. The bill would require the Comptroller to transfer $3.5 million in each fiscal year from the State Parks Account to the new State Historical Areas Account. If the 1998-1999 General Appropriations Act does not provide an appropriation to the THC for administration of the transferred historic properties, the bill would appropriate $3.5 million in each year of the biennium from the new account to the THC, and would reduce the appropriation to the TPWD from the State Parks Account by an equivalent amount. On the effective date of the bill, all powers, duties, files, equipment, property, and unobligated and unexpended appropriations of the TPWD designated for the administration of historic sites would be transferred to the Historical Commission. The bill would take effect September 1, 1997. Methodolgy The TPWD estimates probable savings at $1,700,608 in each year, based on current operational expenditures at the 15 sites. The probable revenue loss to the State Parks Account is estimated at $405,600 in each year, and is based on the total revenue received at the 15 sites. Overall, the TPWD anticipates that implementing the provisions of the bill will result in a loss of $2.2 million in each year to the department. This amount represents the total loss to the State Parks Account of $3,905,600 ($3.5 million transferred out plus the estimated revenue loss of $405,600) less estimated savings to the account ($1,700,608). In addition, it is estimated that the transfer would result in a reduction of approximately 57 FTEs at TPWD. An estimate of the amount of unobligated/unexpended appropriations that would be transferred to the Historical Commission was not available. The new State Historical Areas Account would offset the loss to State Parks Account, as both the $3.5 million in transferred funds and revenues from the operation of historic properties would be deposited to the credit of the account. It is assumed that the transfer of sites to the Historical Commission will not result in significant additional costs; that the THC 's costs to administer the sites would be equal to and not exceed $3,905,600 in each fiscal year ( $3.5 million transferred plus $405,600 in revenues); that the amount of revenues collected by THC from the sites would be similar to the amounts collected by TPWD; and that the THC could administer and operate the transferred sites with the same number of FTEs as the TPWD. Since the bill involves a transfer of existing funds from one account to another and shifts receipt/deposit of existing revenue sources from one agency/account to another, no significant fiscal implication to the state is anticipated. The amounts shown in the table below reflect only these transfers, and do not reflect any new money to the state. 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 Probable Probable Revenue Probable Gain/(Loss) from Savings/(Cost) Gain/(Loss) from Savings/(Cost) State Parks from State Parks New - GR from New - GR Account/ Account/ Dedicated - Dedicated- State GR-Dedicated GR-Dedicated State Historical Historical Areas Areas Account Account 0064 0064 NEW-DED NEW-DED 1998 ($3,905,600) $1,700,608 $3,905,600 ($3,905,600) 1998 (3,905,600) 1,700,608 3,905,600 (3,905,600) 2000 (3,905,600) 1,700,608 3,905,600 (3,905,600) 2001 (3,905,600) 1,700,608 3,905,600 (3,905,600) 2002 (3,905,600) 1,700,608 3,905,600 (3,905,600) 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 $0 1999 0 2000 0 2001 0 2002 0 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: LBB Staff: JK ,TH ,JA