LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 21, 1997
TO: Honorable Bill Ratliff, Chair IN RE: Senate Bill No. 896, Committee Report 1st House, Substituted
Committee on Finance By: Shapleigh
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB896 ( relating
to the lease of certain state facilities) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SB896-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
positive impact of $1,146,000 to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend the Subchapter E of the Government Code
to establish a pilot program to develop private, commercial
uses for state-owned parking lots and garages in the city of
Austin in the area bordered by West Fourth Street, Lavaca Street,
West Third Street, and Nueces Street.
The bill would require
the General Services Commission (GSC) to contract with a private
vendor to manage the commercial use of state-owned parking facilities.
All of the proceeds collected under this pilot program would
be deposited to the credit of the General Revenue Fund. The
bill would require GSC to submit, on or before December 1 of
each even-numbered year, a report to the Legislature and to
the Legislative Budget Board describing the effectiveness of
the pilot program. The bill would remove limitations on leasing
building space to private tenants and require the GSC or a state
agency with charge and control of a state building to prescribe
rules relating to short-term leases with private tenants.
Under
current law, all of the money received from a lease under Subchapter
E may be used by the GSC for the performance of building and
property services. The bill would allocate 50 percent of short-term
lease revenue to the general revenue fund, with the remainder
available for GSC building and property services, and transfer
all revenue received under the pilot program to the general
revenue fund.
The bill would allow GSC or a state agency
with charge and control of a state building to enter into a
short-term lease with a private tenant for use of certain facilities.
Methodolgy
It estimated that the pilot parking project would include 1,133
parking spaces and would generate an estimated $424,000 a year
for the General Revenue Fund, beginning in fiscal year 1998.
In
addition, it is estimated that short-term leasing of underused
space would generate $298,000 annually. This estimate assumes
that 10 percent of the available conference and training rooms
in GSC s state-owned buildings in Austin would be leased once
a year. The bill would allow GSC to use one-half of the revenue
for building and property services performed by GSC. This estimate
assumes that the remaining revenue, $149,000 per year, would
be deposited in the General Revenue Fund.
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
Gain/(Loss) from
General Revenue
Fund
0001
1998 $573,000
1998 573,000
2000 573,000
2001 573,000
2002 573,000
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 $573,000
1999 573,000
2000 573,000
2001 573,000
2002 573,000
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: 304 Comptroller of Public Accounts
303 General Services Commission
LBB Staff: RR ,RN