LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 31, 1997
TO: Honorable Bob Bullock Honorable James E. "Pete" Laney
Lieutenant Governor Speaker of the House
Senate
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; authorizing
the issuance of bonds and the imposition of taxes; granting
the power of eminent domain; and providing civil penalties.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB370-Conference Committee Report
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; provide for
specialized professional sports team license plates; allow 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 5 employees per fiscal year and not more than
$15,000 per employee, or $75,000 annually.
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 in
three separate installments. The State Auditor's Office would
conduct and complete and audit by the first payment date which
would be not later than December 31, 1997. The remaining payments
would be required by not later than September 1, 1998 and the
balance by August 31, 1999. In determining that amount, the
State Auditor 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.
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 if necessary repayment
to the department of the start up costs could be initiated in
the same fiscal year.
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 would be deposited to the credit
of the state infrastructure bank.
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 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 ($1,631,011) 8.0
1998 (1,567,761) 8.0
2000 (262,477) 3.0
2001 (262,477) 3.0
2002 (262,477) 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:
LBB Staff: JK ,PE ,ML