LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 9, 1997
TO: Honorable Jerry Patterson, Chair IN RE: Senate Bill No. 227, Committee Report 1st House, Substituted
Committee on Veteran Affairs & Military Installations-Spec By: Madla
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB227 ( relating
to a grant for a local area adversely affected by a reduction
in defense-related activity.) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by SB227-Committee Report 1st House, Substituted FN Revision 1
Implementing the provisions of the bill would result in a net
negative impact of $(15,750,000) to General Revenue Related
Funds through the biennium ending August 31, 1999.
Fiscal Analysis
The bill would require the Department of Commerce (TDOC) to
establish a grant program for local communities impacted by
United States Department of Defense (DOD) base and facilities
mergers, consolidations, closures and acquisitions. The grants
would be used by local communities to purchase property from
the DOD, new construction, rehabilitation, or renovation of
facilities or infrastructure, or purchase of capital equipment
or insurance. These improvement would be designed to stimulate
the economic development of the communities.
Methodolgy
The amount required for grants is based on calculations from
local communities that estimated the funds required to renovate
DOD facilities located in their jurisdictions for commercial
use. The estimates assume DOD funds will provide 25 percent
of the cost for capital improvements and 50 percent of the remainder
would be provided from the General Revenue Fund. The estimate
assumes administrative costs associated with implementing this
bill would be covered by TDOC existing appropriations.
Five Year Impact:
Fiscal Year Probable
Savings/(Cost)
from General
Revenue Fund
0001
1998 ($7,850,000)
1998 (7,850,000)
2000 0
2001 0
2002 0
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($7,850,000)
1999 (7,850,000)
2000 0
2001 0
2002 0
No significant fiscal implication to units of local government
is anticipated.
Source: Agencies: 304 Comptroller of Public Accounts
465 Department of Commerce
LBB Staff: JK ,JD ,CG