LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 7, 1997 TO: Honorable Carlos F. Truan, Chair IN RE: Senate Bill No. 369 Committee on International Relations, Trade & Technology By: Sibley Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB369 ( Relating to the abolition of the Texas Turnpike Authority and the transfer of its functions to the Texas Department of Transportation and newly created regional tollway authorities.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB369-As Introduced FN Revision 1 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 The bill would establish the Texas Turnpike Authority (TTA) as a division of the Department of Transportation and would establish the North Texas Tollway Authority as a regional tollway authority. In addition, the bill would allow for the establishment of regional tollway authorities. Methodolgy Provisions in the bill creating the North Texas Tollway Authority (NTTA) and the Texas Turnpike Authority (TTA) division within TxDot also transfer assets from the Texas Turnpike Authority to the North Texas Tollway Authority. The NTTA would assume and become liable for all duties and obligations of the TTA related to those assets, rights and properties transferred. In addition, as a consideration for the transfer of certain properties to the NTTA, a provision of the bill provides for an amount to be paid to the Department of Transportation, agreed upon by the NTTA and the department, by no later than October 1, 1997. In determining that amount, the NTTA and the department would ensure that, following the payment, the NTTA is in compliance with all agreements assumed by the NTTA and reserves would be maintained at a level consistent with TTA historical practices. Existing obligations incurred by the TTA for feasibility studies for US 183-A and the SH 130 totaling $1,150,000 would need to be funded by the Department until funds generated by projects initiated by TTA could be made available to the TTA division to assume responsibility for the continuation of the studies. In addition, start up costs for the division would need to be made available to allow the division to begin its functions. Those amounts, for five FTEs and operating costs, are $345,584 for fiscal year 1998 and $305,284 for fiscal year 1999. The Division could be self sustaining after projects come on-line by fiscal year 2000 and repayment to the department of the start up costs could be initiated in the same fiscal year. Should a specific amount identified to be paid by the NTTA to the department by October 1, 1997 be higher than the identified outstanding obligations and startup costs, the amounts provided by the department to the TTA division for those costs could be assumed by the Division and therefore provisions related to the creation of the TTA division would have no fiscal impact to the department. 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 Change in Number Savings/(Cost) of State from State Employees from Highway Fund FY 1997 0006 1998 ($1,495,584) 5.0 1998 (305,284) 5.0 2000 0 0.0 2001 0 0.0 2002 0 0.0 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 No fiscal implication to units of local government is anticipated. Source: Agencies: 302 Office of the Attorney General 601 Department of Transportation LBB Staff: JK ,TH ,ML