LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 9, 1997
         
         
      TO: Honorable Bob Bullock            IN RE:  Senate Bill No. 1301, 
As Passed 2nd House
          Lieutenant Governor                Harris
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1301 ( relating 
to parking, vehicle traffic, and security in the Capitol Complex.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1301-As Passed 2nd House
         
Implementing the provisions of the bill would result in a net 
negative impact of $(4,194,122) 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 provide authority for the installation of parking 
meters in the Capitol Complex; it would also designate that 
revenues from the meters be deposited in the State Preservation 
Board's Capitol Fund.  The Department of Public Safety would 
be responsible for operation and maintenance of the parking 
meters and enforcement of parking violations.

The bill would 
authorize the issuance of bonds to finance the construction 
of parking garages in the Capitol Complex.  The bill would authorize 
the State Preservation Board to charge a fee for parking in 
a facility designated for visitors.  Revenue from the fee would 
be credited to the Capitol Fund.  If revenue bonds are issued 
for construction of the facility, the State Preservation Board 
would be required to transfer parking fee revenue to the Texas 
Public Finance Authority to pay debt service on not more than 
one-half of the amount of bonds issued for the visitor's parking 
garage.
 
Methodolgy
 
The parking meter installation costs of approximately $329,000 
are based on the Department of Public Safety's estimate of 814 
parking meters being installed in the Capitol Complex area. 
 The State Preservation Board expects to initially pay for this 
cost from its Capitol Fund.  The Department of Public Safety 
estimates that annual revenues collected (and deposited in the 
Capitol Fund) from the use of the parking meters will total 
$1,562,880.  The State Preservation Board estimates annual reimbursement 
to the Department of Public Safety (General Revenue Fund) for 
operation and maintenance of parking meters to be $172,160. 
 The estimated costs and revenues assume that the bill would 
become effective immediately upon enactment.

The Texas Public 
Finance Authority estimates the total amount of bond proceeds 
needed to finance the construction of the parking garages is 
$38.8 million.  The estimated debt service on these bonds is 
$1.7 million in fiscal year 1998 and $3.5 in fiscal year 1999. 
 The State Preservation Board estimates that the revenues from 
a fee charged for use of the visitor's parking facility will 
be $1,276,800 per year, to be credited to the Capitol Fund. 
 The transfer from the Capitol Fund to the General Revenue Fund 
to pay one-half the debt service on only the visitor's parking 
garage is approximately $311,567 in fiscal year 1998 and $641,500 
in fiscal year 1999.  The State Preservation Board estimates 
that the cost to operate the visitor's parking garage would 
be $270,000 per year.
The probable fiscal implications of implementing the provisions 
of the bill during each of the first five years following passage 
is estimated as follows:
 
Six Year Impact:
 
Fiscal Year Probable           Probable Revenue   Probable           Probable Revenue   
            Savings/(Cost)     Gain/(Loss) from   Savings/(Cost)     Gain/(Loss) from                     
            from Capitol       Capitol Fund -     from General       General Revenue                      
            Fund - Outside     Outside Treasury   Revenue Fund       Fund                                 
            Treasury                                                                                      
            NEW-OTH            OTHER-OTH          0001               0001                                  
       1997        ($329,077)                $0                $0                $0                  
       1997         (753,726)         2,839,600       (1,681,550)           311,566                  
       1999       (1,083,660)         2,839,600       (3,465,638)           641,500                  
       2000       (1,086,473)         2,839,600       (3,469,988)           644,312                  
       2001       (1,083,472)         2,839,600       (3,463,950)           641,312                  
       2002       (1,084,660)         2,839,600       (3,470,200)           642,500                  
 
 
Fiscal Year Probable           Probable Revenue   
            Savings/(Cost)     Gain/(Loss) from                                                           
            from General       General Revenue                                                            
            Revenue Fund       Fund (Department                                                           
            (Department of     of Public Safety)                                                          
            Public Safety)                                                                                
            0001               0001                                                                        
       1997                $0                $0                                                      
       1998         (172,160)           172,160                                                      
       1999         (172,160)           172,160                                                      
       2000         (172,160)           172,160                                                      
       2001         (172,160)           172,160                                                      
       2002         (172,160)           172,160                                                      
 
         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
               1997                   $0
               1998          (1,369,984)
               1999          (2,824,138)
               2000          (2,825,676)
               2001          (2,822,638)
               2002          (2,827,700)
 
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:   809   Preservation Board
                                         405   Department of Public Safety
                                         
                      LBB Staff:   JK ,RR ,NT