LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 9, 1997
TO: Honorable Clyde Alexander, Chair IN RE: Senate Bill No. 370, Committee Report 2nd House, Substituted
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-Committee Report 2nd House, Substituted
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; 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 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.
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.
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
$10.0 million to be paid to the Texas Turnpike Authority division
of the Department of Transportation, by the NTTA by no later
than December 1, 1997. In making the payment, the NTTA and the
department would ensure that 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 be funded
by the Department from the funds transferred from the NTTA.
In addition, start up costs for the division would also be from
the NTTA transfer 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 and are
included in the estimate.
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 ($2,706,011) $10,000,000 8.0
1998 (1,492,761) 0 8.0
2000 (187,477) 0 3.0
2001 (187,477) 0 3.0
2002 (187,477) 0 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