LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 1, 1997
TO: Honorable Jerry Patterson, Chair IN RE: Senate Bill No. 352, Committee Report 1st House, as amended
Committee on Veteran Affairs & Military Installations-Spec By: Armbrister
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB352 ( relating
to the continuation and functions of the Texas National Guard
Armory Board.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB352-Committee Report 1st House, as amended
Implementing the provisions of the bill would result in a net
negative impact of $(2,682,284) to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would continue the agency for four years, setting the
date for the next Sunset review as September 1, 2001. The bill
would also restructure the board composition to include more
public members, including members with experience in construction
management.
The National Guard Armory Board is subject to
the provisions of the Texas Sunset Act, and unless continued
by the 75th Legislature, will be abolished September 1, 1997.
Funding for the National Guard Armory Board is included in
the General Appropriations bill, as introduced, and is contingent
upon passage of S.B. 352 or similar legislation. The General
Appropriations bill, as introduced, would provide general revenue,
grants, and federal funds and would provide $6,216, 421 and
31 employees in fiscal year 1999.
In addition, the bill
would require the Texas National Guard Armory Board to transfer
to four cities - Donna, Edinburg, McAllen and Pharr - real property
(land and improvements, such as buildings) in those cities,
if that real property is no longer used by the Texas National
Guard Armory Board as an armory. The property must be fully
paid for and free of liens, and all obligations incurred in
connection with the acquisition and construction of the property
must have been fully paid.
The cities would be required to
use the property for governmental purposes only, and title to
the property would revert to the Armory Board if the property
were to be used for a non-governmental purpose.
Methodolgy
The estimates for the four properties were based on General
Land Office appraisals. The total for the properties equals
$2,686,284.
While the Comptroller's Office has not included
this amount as a loss to General Revenue (based on the Biennial
Revenue Estimate), current law requires the Armory Board to
deposit proceeds of sales into the state treasury for use and
benefit of the Armory Board. The loss to General Revenue is
shown for fiscal year 1998, however, these funds are used for
maintenance of all armories and facilities statewide and would
be expended during fiscal year 1998 and fiscal year 1999.
The
cost savings are $4,000 for the year for maintaining the vacant
armories.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue Probable
Gain/(Loss) from Savings/(Cost)
General Revenue from General
Fund Revenue Fund
0001 0001
1998 ($2,686,284) $4,000
1998
2000
2001
2002
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 ($2,682,284)
1999 0
2000 0
2001 0
2002 0
Four cities would receive land and improvements valued as follows:
Edinburg:
$400,000
McAllen: $1,611,284
Donna:
325,000
Pharr:
350,000
Source: Agencies:
LBB Staff: JK ,JD ,RS