LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 31, 1997 TO: Honorable Fred Hill, Chair IN RE: House Bill No. 2446 Committee on Urban Affairs By: Greenberg House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2446 ( Relating to performance audits of certain metropolitan transit authorities.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2446-As Introduced Implementing the provisions of the bill would result in a net negative impact of $(200,000) 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 Chapter 451 of the Transportation Code to allow the Comptroller to conduct a performance audit of any metropolitan transit authority (MTA) whose board members were confirmed before July 1, 1985, and in which the principal municipality had a population of less than 750,000. In performing the audit, the Comptroller would examine any budgets and operations of the MTA, determine whether the MTA was effectively and efficiently providing the services it was created to provide, and make appropriate recommendations to the Legislature. The bill would allow the Comptroller to initiate the performance audit at the Comptroller s discretion. The bill would require the Comptroller to conduct the audit at the request of the Governor, the Lieutenant Governor, the Speaker of the House of Representatives, or the presiding officer of the committee of the Senate or the House of Representatives responsible for approving legislation governing the MTA. The bill also would restrict the performance audit from being conducted more than once every two years. Methodolgy The bill would allow the Comptroller to conduct a performance audit of the Austin metropolitan transit authority once every two years. The Comptroller has estimated that it would cost $200,000 in consulting services costs to conduct the review. 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 Savings/(Cost) from General Revenue Fund 0001 1998 ($200,000) 1998 2000 2001 2002 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 ($200,000) 1999 0 2000 0 2001 0 2002 0 Similar annual fiscal implications could 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 LBB Staff: JK ,TL ,RN