LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                            February 23, 1999
  
  
          TO:  Honorable Chris Harris, Chair, Senate Committee on
               Administration
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB494  by Harris (relating to the operations, powers, and
               duties of the State Preservation Board), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB494, As Introduced:  negative impact of $(14,420,766) through       *
*  the biennium ending August 31, 2001.                                  *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                         $(6,789,411)  *
          *       2001                          (7,631,355)  *
          *       2002                          (8,202,929)  *
          *       2003                          (8,130,929)  *
          *       2004                          (8,130,929)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***********************************************************************
*Fiscal    Probable    Probable    Probable    Probable   Change in    *
* Year     Savings/    Revenue     Revenue     Savings/   Number of    *
*        (Cost) from Gain/(Loss) Gain/(Loss) (Cost) from    State      *
*          General    from New -  from New -   Capitol    Employees    *
*          Revenue        GR          GR        Fund -   from FY 1999  *
*            Fund     Dedicated   Dedicated    Outside                 *
*            0001      -Capitol    -Capitol    Treasury                *
*                      Renewal     Renewal                             *
*  2000                $2,657,454                 $10,500        49.0  *
*        $(6,789,411)            $(2,657,454)                          *
*  2001   (7,631,355)   2,657,454 (2,657,454)     100,500       104.0  *
*  2002   (8,202,929)   2,657,454 (2,657,454)     360,500       104.0  *
*  2003   (8,130,929)   2,657,454 (2,657,454)     360,500       104.0  *
*  2004   (8,130,929)   2,657,454 (2,657,454)     360,500       104.0  *
***********************************************************************
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                 Capitol Fund - Outside Treasury    *
         *      2000                                $(10,000) *
         *      2001                                (100,000) *
         *      2002                                (360,000) *
         *      2003                                (360,000) *
         *      2004                                (360,000) *
         *****************************************************
  
Technology Impact
  
Operating the State History Museum would create substantial technological
impact.  Four technical FTEs would be needed at a cost of $215,000 for
the biennium.  Additional costs include exhibits using "high-tech"
special effects, a technologically advanced ticketing system, and a
point-of-sale system for the gift shop.
  
  
Fiscal Analysis
  
The bill would establish a new, General Revenue-dedicated account, the
Capitol Renewal Fund, to be used by the State Preservation Board (the
Board) to maintain and preserve the Capitol and the 1857 General Land
Office building.  The bill would also grant the Board authority to
maintain and restore the historic Woodlawn property (Pease Mansion),
extend its authority to operate the State History Museum and authorize it
to provide tours of the Capitol and other buildings under its
jurisdiction.

The Board could earn revenue and spend funds from the Capitol Fund, a
fund held outside the treasury and not subject to legislative
appropriation.  The fund would include revenues from various pay station
telephones, fees derived from renting the Pease Mansion, expenditures
for agency publications, and revenue from transportation services.
  
  
Methodology
  
All cost estimates assume that the Board initiates or continues all
programs during fiscal year 2000.

Annual costs to the Capitol Renewal Fund include equipment replacement in
the Capitol and are estimated to be $2,657,454 from the General Revenue
Fund.  It is anticipated that annual revenue to the fund will consist of
a transfer from the General Revenue Fund.

The cost to open and operate the State History Museum was based on a
business plan prepared for the museum by a consultant.  Costs to General
Revenue are estimated to be $386,482 and 15 FTEs and $4,128,426 and 63
FTEs in fiscal years 2000 and 2001, respectively.

Restoration and maintenance costs for the Pease Mansion were estimated by
consulting with preservationists; ongoing maintenance costs were based
on schedules prepared by the agency's facilities personnel.  The cost is
estimated at $3,320,000 in fiscal year 2000 and $420,000 in fiscal year
2001.

The cost for providing tours of the Capitol was based on the operating
budget for the Capitol Information and Tour Guide Service, currently
operated by the Senate, and estimated to be $423,475 and 30 FTEs
annually.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, BB, NS