LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 8, 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), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB628, Committee Report 1st House, Substituted: 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. * ************************************************************************** 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) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *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 * *************************************************************************** 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 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 to the new GR-Dedicated Account would be made to fund a total of three grants and two loans during each fiscal year. Average project costs are estimated to be $2 million each, with the state contributing 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. Source Agencies: 302 Office Of The Attorney General, 304 Comptroller of Public Accounts, 455 Railroad Commission, 601 Department of Transportation LBB Staff: JK, SD, MF