LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 13, 1997
TO: Honorable Eddie Lucio, Jr., Chair IN RE: Senate Bill No. 342, Committee Report 1st House
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 disposition of the optional county road and bridge fee
in certain counties.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB342-Committee Report 1st House
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.
Fiscal Analysis
This bill would require that Harris county allocate funds it
receives through the Optional Road and Bridge Fee as provided
in Section 502.172, 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.
The
provisions of this bill would take effect on March 1, 1998,
the beginning of the Harris County fiscal year.
Methodolgy
According to data from the Office of the Comptroller of Public
Accounts, Harris County retained $23,502,714 in Optional Road
and Bridge Fees during fiscal year 1996. Based on Harris County
reported expenditures under Chapter 502, Transportation Code,
for calendar years 1995 and 1996, approximately 25% of allocations
were made toward construction projects, with the remaining 75%
going to maintenance activities. 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.
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 Optional Road and Bridge Fee funds to unincorporated
areas of the County from 87.5% of the approximately $23.5 million
per year, or $20,562,500, to 29.3%, or $6,891,760 or an annual
net loss in revenue for projects in unincorporated areas of
$13,670,740. In contrast, the 34 cities in Harris County would
collectively realize an increase of $13,670,740 annually in
Optional Road and Bridge Fee 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, its six largest
cities and the aggregate impact on the 28 smaller cities is
shown):
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
Houston
LCL-COUNTY LCL-CITY LCL-CITY LCL-CITY
1998 ($6,835,370) $5,503,549 $409,642 $225,524
1998 (13,640,740) 11,007,099 819,284 451,048
2000 (13,640,740) 11,007,099 819,284 451,048
2001 (13,640,740) 11,007,099 819,284 451,048
2002 (13,640,740) 11,007,099 819,284 451,048
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 28 other Cities
Houston in Harris County
LCL-CITY LCL-CITY LCL-CITY LCL-CITY
1998 $95,829 $94,899 $48,757 $457,170
1999 191,658 189,798 97,514 914,341
2000 191,658 189,798 97,514 914,341
2001 191,658 189,798 97,514 914,341
2002 191,658 189,798 97,514 914,341
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:
304 Comptroller of Public Accounts
601 Department of Transportation
LBB Staff: JK ,TL