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