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
          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.
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.

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.

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.

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
               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