LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 11, 1999
TO: Honorable Tom Haywood, Chair, Senate Committee on
Agriculture
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB705 by Ogden (Relating to providing aid, support, and
assistance to agriculture, including the promotion of
agriculture and the establishment of the "Go Texan"
Partner Program; providing penalties.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB705, As Introduced: negative impact of $(2,351,625) 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 Net Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(1,178,925) *
* 2001 (1,172,700) *
* 2002 (1,172,700) *
* 2003 (1,172,700) *
* 2004 (1,172,700) *
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All Funds, Five-Year Impact:
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*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 - New - GR Employees *
* Revenue Appropriat- GR Dedicated - from FY 1999 *
* Fund ed Receipts Dedicated - Go Texan *
* 0001 Go Texan Partner *
* Partner Program Fund *
* Program Fund *
* 2000 $126,000 $1,050,000 1.0 *
* $(1,178,925) $(2,050,000) *
* 2001 (1,172,700) 126,000 1,050,000 (2,050,000) 1.0 *
* 2002 (1,172,700) 126,000 1,050,000 (2,050,000) 1.0 *
* 2003 (1,172,700) 126,000 1,050,000 (2,050,000) 1.0 *
* 2004 (1,172,700) 126,000 1,050,000 (2,050,000) 1.0 *
***********************************************************************
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year State Highway Fund from State Highway Fund *
* 0006 0006 *
* 2000 $(39,970) $10,000 *
* 2001 (1,000) 10,000 *
* 2002 (1,000) 10,000 *
* 2003 (1,000) 10,000 *
* 2004 (1,000) 10,000 *
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Technology Impact
The Texas Department of Transportation (TXDOT) has estimated technology
costs of $14,700 for fiscal year 2000 and $1,000 for fiscal year 2001.
The Texas Department of Agriculture (TDA) estimates that there would be
no technology impact to the agency.
Fiscal Analysis
The bill would create three new dedicated accounts in the General Revenue
Fund: Agriculture Technology Account, Agricultural Emergency Feed
Account, and "Go-Texan" Partner Program Fund.
The bill would create an interim committee on statewide agricultural
policy consisting of 10 members of the legislature.
The bill would create a crisis management council and manager to manage
and coordinate planning and TDA to address agricultural crises and
develop a state plan to address drought preparedness in agriculture.
Also, the bill would create an agricultural technology program at TDA to
award grants for research on methods to address agricultural crises
(costs would be absorbed with TDA's current budget).
The bill would create and expand financial and risk management assistance
provided by the Texas Agricultural Extension Service (TAEX) to farmers
and ranchers.
The bill would create an agricultural emergency feed program at TDA to
provide assistance for the transportation of hay, other animal feed, or
water during periods of natural disaster. The Commissioner of
Agriculture could request that the Governor authorize expenditures for
transportation relief measures from the disaster contingency fund.
The bill would create the "Go-Texan" Partner Program at TDA to encourage
the marketing of Texas agricultural products through a cost-sharing
program; a new "Go Texan" Partner Program Board would advise TDA on
program activities. The expenses for program administration could not
exceed seven percent of the average "Go Texan" Partner Program Fund
balance.
The bill would authorize the issuance of "Go-Texan" license plates.
TXDOT would issue "Go-Texan" license plates for a $30 fee in addition to
the regular license plate fee. From the $30 fee, $25 would be deposited
to the "Go-Texan" Partner Program Fund Account; the remaining $5 would
be deposited to State Highway Fund 006 for administration of the
"Go-Texan" license plate program.
Methodology
TDA estimates the cost for an agricultural crisis manager (one full-time
equivalent) and associated expenses is $52,925 in fiscal year 2000 and
$46,700 in fiscal year 2001 from general revenue. TDA and the other
agencies involved in the crisis management council could absorb the costs
of participating in the council with current resources.
TAEX submitted a cost estimate of $2,620,000 for educational programs
related to financial and risk management, which included an additional
33.5 FTEs to implement these programs. This fiscal note assumes that the
costs estimated by TAEX are beyond the scope of the bill. TAEX
estimates that the educational programs and materials would generate
annual revenues of $126,000, based on anticipated requests from four
producers per week in each of 12 districts. This fiscal note projects
costs equal to revenues generated.
TDA estimates that the "Go-Texan" Partner Program would cost $2,050,000
based on the assumption that the agency could generate $1,000,000 from
producer contributions to the program and $50,000 from the sale of
"Go-Texan" license plates. The remaining $1,000,000 from general revenue
would match producer contributions.
TXDOT estimates, based on experience with other special plates, that the
cost of producing "Go-Texan" plates is $39,970 in fiscal year 2000 out
of State Highway Fund 006. Operation costs for fiscal year 2001 and
beyond is estimated at $1,000 per year. TDA estimates license plate
sales of 2,000 per year which would generate $60,000 per year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, DE, DM