LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 7, 1997 TO: Honorable Bill Ratliff, Chair IN RE: Senate Bill No. 807 Committee on Finance By: Lucio Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB807 ( Relating to the allocation of certain sales, excise, and use tax revenue to the Parks and Wildlife Department.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB807-As Introduced Implementing the provisions of the bill would result in a net negative impact of $(20,000,000) to General Revenue Related Funds through the biennium ending August 31, 1999. Fiscal Analysis The bill would raise the sporting goods sales tax available to Texas Parks and Wildlife Department from $32 million annually to $42 million annually for the 1998-99 biennium, $47 million annually for the 2000-01 biennium and $52 million annually for the 2002-03 biennium. The State Parks Account (Fund 064) and the Texas Recreation and Parks Account (Fund 467) would each receive 40% and the Texas Parks and Wildlife Capital Account (Fund 5004) would receive 20%. Methodolgy The bill would increase the amount available to local governments for local park grants from $15.5 million annually to $19.5 million annually in fiscal years 1998 and 1999, $21.5 million annually in fiscal years 2000 and 2001, and $23.5 million annually in fiscal years 2002 and 2003. The impact in fiscal year 2002 would continue through fiscal year 2003 as specified in the bill. Beyond fiscal year 2003, the Department of Parks and Wildlife would receive a revenue gain to the full amount of the sporting goods sales tax. 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 Revenue Probable Revenue Probable Revenue Probable Revenue Gain/(Loss) from Gain/(Loss) from Gain/(Loss) from Gain/(Loss) from General Revenue State Parks Texas Recreation Texas Parks and Fund Account/ and Parks Wildlife Capital GR-Dedicated Account/ Account/ GR-Dedicated GR-Dedicated 0001 0064 0467 5004 1998 ($10,000,000) $4,000,000 $4,000,000 $2,000,000 1998 (10,000,000) 4,000,000 4,000,000 2,000,000 2000 (15,000,000) 6,000,000 6,000,000 3,000,000 2001 (15,000,000) 6,000,000 6,000,000 3,000,000 2002 (20,000,000) 8,000,000 8,000,000 4,000,000 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 ($10,000,000) 1999 (10,000,000) 2000 (15,000,000) 2001 (15,000,000) 2002 (20,000,000) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. Source: Agencies: 802 Parks and Wildlife Department LBB Staff: JK ,RR ,SM