LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 7, 1997 TO: Honorable Carlos F. Truan, Chair IN RE: Senate Bill No. 370 Committee on International Relations, Trade & Technology By: Armbrister 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.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB370-As Introduced 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; direct the agency toconduct a study of the cost/benefit, in conjunction with the Comptroller, of moving the point-of-accountability for motor fuels taxes and to report to the Legislature on the study results by January 1, 1998; 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 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 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 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 ($1,706,011) 8.0 1998 (492,761) 8.0 2000 (187,477) 8.0 2001 (187,477) 8.0 2002 (187,477) 8.0 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: 302 Office of the Attorney General 601 Department of Transportation LBB Staff: JK ,TH ,ML