LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 5, 1997
TO: Honorable Clyde Alexander, Chair IN RE: Senate Bill No. 370, As Engrossed
Committee on Transportation By: Armbrister
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB370 ( Relating
to the continuation and functions of the Texas Department of
Transportation, the abolition of the Texas Turnpike Authority,
and the creation of regional tollway authorities.) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by SB370-As Engrossed
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 continue the Texas Department of Transportation
(TxDot) for twelve years. Provisions of the bill would: require
the department to conduct a two-year pilot project to determine
if outsourcing maintenance and repair of department vehicles
is cost-effective; authorize the department to create and use
a State Infrastructure Bank; authorize the department to provide
financial assistance for moving related expenses; require the
department to establish an emergency highway call box system;
transfer the functions of the Texas Turnpike authority to the
department and create a Texas Turnpike Authority Division within
TxDot and; authorize the creation of Regional Tollway Authorities
and establishes the North Texas Tollway Authority comprising
Collin, Dallas, Denton, and Tarrant counties.
Methodolgy
The bill would authorize the department to provide reimbursement
to transferred employees for expenses or costs related to selling
existing housing and purchasing and financing comparable replacement
housing on approval by the director. Reimbursement would be
for not more than 25 employees per fiscal year and not more
than $15,000 per employee. The department estimated that three
employees at $15,000 would be approved for relocation expenses
annually . The cost included in the estimate for this provision
was for reimbursement of 25 employees at $15,000 or $375,000
each fiscal year.
The bill authorizes the department to create
and use a State Infrastructure Bank (SIB) to encourage public
and private investment in transportation facilities, and to
develop financing techniques. A staff of three FTEs plus operating
costs for the implementation of the SIB would total $210,427
in fiscal year 1998 and $187,477 in fiscal year 1999 and thereafter.
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
bill would require the department to conduct a two-year pilot
project to determine whether contracting with a private entity
for maintenance and repair services of all department vehicles
would be cost-effective. Any cost savings resulting from the
pilot project and from funds appropriated would be used to assist
counties with materials to repair county roads damaged as a
result of legally permitted overweight truck traffic. The total
value of the assistance would be at least $20.0 million a year.
The department estimated that the cost to the department would
be an additional $14.0 million annually.
The bill would require
the department to develop a cost/benefit analysis between the
use of local materials previously incorporated into roadways
verses use of materials blended or transported from other sources.
The department has estimated that the research projects would
cost approximately $1.0 million per year for fiscal years 1998
and 1999.
The bill would require the department to establish
an emergency call box program along the state highway system.
Farm-to-Market and Ranch-to-Market roads would be excluded.
The department has estimated that installation of approximately
11,000 call boxes would be accomplished over a ten year period.
The estimated program cost for the first five years is $36 million
with revenues required to cover the cost of the program.
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 Probable Revenue Change in Number
Savings/(Cost) Gain/(Loss) from of State
from State State Highway Fund Employees from
Highway Fund FY 1997
0006 0006
1998 ($22,733,215) $0 8.0
1998 (22,261,365) 11,389,250 8.0
2000 (21,771,600) 11,482,500 3.0
2001 (22,498,077) 11,598,000 3.0
2002 (23,239,477) 11,713,500 3.0
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
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 601 Department of Transportation
LBB Staff: JK ,PE ,ML