LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 14, 1997
TO: Honorable Tom Craddick, Chair IN RE: Senate Bill No. 501,
As Engrossed
Committee on Ways & Means By: Zaffirini
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB501 ( relating
to authorizing the comptroller to provide assistance to local
governments in obtaining funds from the federal government)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB501-As Engrossed
Providing services to Texas' 20 most populated counties would
result in administrative costs of $935,000 per year. The actual
cost and statewide charge to local governments would vary depending
on the amount of assistance provided by the Comptroller. To
the extent that all administrative costs are recovered by the
Comptroller, the net cost to the state would be minimized.
However, the bill does not require the Comptroller to recover
local government assistance costs, so these costs could be paid
solely by the General Revenue Fund.
The bill would authorize the Comptroller, at the request of
a political subdivision, to provide assistance and technical
support in obtaining the maximum amount of funding from the
federal government to which the political subdivision is entitled.
The Comptroller would be authorized to charge the political
subdivision a fee not to exceed 20 percent of the additional
funds received because of the assistance provided by the Comptroller.
The
bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Implementation of the bill would have a beneficial fiscal impact
for those local governments that experience an increase in federal
funds as a result of assistance from the Comptroller. For example,
the Comptroller estimates that its assistance to political subdivisions
would generate an additional $7 million in federal funds per
year for Texas 20 largest counties. Assuming that these counties
would reimburse the Comptroller for estimated costs, then the
net gain to these counties would be approximately $6.1 million
per year. The actual increase in federal funds would depend
on the extent to which assistance from the Comptroller results
in additional federal revenue, and the extent to which local
governments seek this assistance.
Source: Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK ,RR ,TL ,RN