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