LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 29, 1999
TO: Honorable Florence Shapiro, Chair, Senate Committee on
State Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB628 by Truan (Relating to rail transportation
districts.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB628, As Introduced: negative impact of $(4,000,000) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(2,000,000) *
* 2001 (2,000,000) *
* 2002 (2,000,000) *
* 2003 (2,000,000) *
* 2004 (2,000,000) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Revenue Savings/(Cost) Revenue *
* from General Gain/(Loss) from New - GR Gain/(Loss) *
* Revenue Fund from New - GR Dedicated from New - GR *
* 0001 Dedicated Dedicated *
* 2000 $(2,000,000) $2,000,000 $(2,000,000) $0 *
* 2001 (2,000,000) 2,000,000 (2,000,000) 148,848 *
* 2002 (2,000,000) 2,000,000 (2,000,000) 297,696 *
* 2003 (2,000,000) 2,000,000 (2,000,000) 446,544 *
* 2004 (2,000,000) 2,000,000 (2,000,000) 595,392 *
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Fiscal Analysis
The bill would expand the definition of a "transportation district" from
a rural rail transportation district to a rail transportation district.
The bill would also allow a rail transportation district to file a taking
in court to acquire real property for the timely construction of a
railroad project.
The bill would create the General Revenue-Dedicated Competitive Rail
Account in the General Revenue Fund. Funds in the Account could only be
used by the Railroad Commission for grants and loans to rail
transportation districts to improve rail competition.
Methodology
The Railroad Commission estimates that additional work associated with
review of the applications for loans and grants and the development of
rules could be absorbed by existing staff.
Although the Railroad Commission gave no estimate for the amount of funds
necessary for grants and loans to the districts, for the purposes of
this fiscal note, it is estimated that a transfer from the General
Revenue Fund would be made to fund a total of three grants and two loans
each fiscal year. Average project costs are estimated to be $2 million
each and the state would contribute a 20 percent match. Repayments
would be over a 20 year period at an interest rate of seven percent.
Local Government Impact
The bill could result in a positive impact to districts since funds would
be available from the Competitive Rail Account. Districts could receive
revenues from the Account, depending on the amount available in the
Account and the criteria by which the Railroad Commission would
distribute the funds to the districts. There could be some
administrative costs associated with the takings declaration
requirements, but no significant fiscal impact is anticipated.
Source Agencies:
LBB Staff: JK, SD, MF