LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session February 12, 1997 TO: Honorable Eddie Lucio, Jr., Chair IN RE: Senate Bill No. 342 Committee on Intergovernmental Relations By: Gallegos Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB342 ( Relating to the fees paid in certain counties for the purpose of road and bridge maintenance and construction.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB342-As Introduced 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. No fiscal implication to the State is anticipated. Fiscal Analysis This bill would require that Harris county allocate funds it receives through vehicle registration fees under Chapter 502, Transportation Code, to projects in each of the 34 municipalities and the unincorporated sections of Harris County in proportion to the population of each entity. Methodolgy According to data from the Office of the Comptroller of Public Accounts, Harris County allocates an average of approximately $46 million annually in funds provided by Chapter 502, Transportation Code: calendar year 1996 expenditures totaled $45,619,476 ($11,643,826 for construction and $33,984,650 for maintenance) and calendar year 1995 expenditures totaled $47,257,495 ($13,900,880 for construction and $34,167,415 for maintenance). The Harris County Engineer's office reports that virtually all maintenance funds are allocated to unincorporated sections, while a portion of construction funds is actually spent in incorporated cities in Harris County. Based on the data presented above, construction funds represent approximately 25% of Chapter 502 expenditures in Harris County. Assuming that 50% of construction funds are allocated evenly to projects in municipalities throughout Harris County, approximately 12.5% of the total funds affected by this bill are currently being spent by Harris County on projects inside incorporated areas, with the remaining 87.5% being spent in unincorporated areas. According to 1990 US Census data, the incorporated sections of Harris County's total population of 2,818,199 account for 1,991,716 residents, or 70.6%, while unincorporated areas account for 826,716 residents, or 29.3%. Consequently, upon enactment of this bill, Harris County would be required to reduce the allocation of Chapter 502 funds to unincorporated areas of the County from 87.5% of the average $46 million per year, or $40,250,000, to 29.3%, or $13,490,253, for an annual net loss in revenue for projects in unincorporated areas of $26,759,747. In contrast, the 34 cities in Harris County would collectively realize an increase of $26,759,747 annually in Chapter 502 allocations. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows (impact on Harris County and its six largest cities are shown, as well as the aggregate impact for the 28 smaller cities.): Five Year Impact: Fiscal Year Probable Revenue Probable Revenue Probable Revenue Probable Revenue Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to Harris County the City of City of Pasadena City of Baytown (unincorporated) Houston LCL-COUNTY LCL-CITY LCL-CITY LCL-CITY 1998 ($26,759,000) $21,545,810 $1,603,704 $882,902 1998 (26,759,000) 21,545,810 1,603,704 882,902 2000 (26,759,000) 21,545,810 1,603,704 882,902 2001 (26,759,000) 21,545,810 1,603,704 882,902 2002 (26,759,000) 21,545,810 1,603,704 882,902 Fiscal Year Probable Revenue Probable Revenue Probable Revenue Probable Revenue Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to Gain/(Loss) to City of La Porte City of Deer Park City of South other 28 cities Houston in Harris County LCL-CITY LCL-CITY LCL-CITY LCL-CITY 1998 $375,160 $371,519 $190,878 $1,789,773 1999 375,160 371,519 190,878 1,789,773 2001 375,160 371,519 190,878 1,789,773 2002 375,160 371,519 190,878 1,789,773 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. Source: Agencies: 601 Department of Transportation 304 Comptroller of Public Accounts LBB Staff: JK ,TL