LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                               May 17, 1999
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1862 by Ratliff (relating to the state participation
               program of the Texas Water Development Board), Committee
               Report 2nd House, Substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Fundsfor     *
*  SB1862, Committee Report 2nd House, Substituted:  positive impact     *
*  of $40,000 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                                   $0  *
          *       2001                               40,000  *
          *       2002                               64,000  *
          *       2003                               55,000  *
          *       2004                               30,000  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
**************************************************************************
*Fiscal        Probable         Probable Revenue         Probable        *
* Year    Savings/(Cost) from Gain/(Loss) from New  Savings/(Cost) from  *
*        General Revenue Fund    - Appropriated     New - Appropriated   *
*                0001               Receipts             Receipts        *
*  2000                     $0                   $0                   $0 *
*  2001                 40,000               75,000             (40,000) *
*  2002                 64,000               75,000             (64,000) *
*  2003                 55,000               75,000             (55,000) *
*  2004                 30,000               75,000             (30,000) *
**************************************************************************
  
Fiscal Analysis
  
The bill would authorize the Texas Water Development Board (TWDB) to
charge an administrative fee under the State Participation program.
  
  
Methodology
  
This fiscal note estimate assumes that the Legislature would authorize a
$50 million State Participation bond issue in each biennium, with the
TWDB handling a capacity of $25 million in bonds per year.  TWDB
estimates that the administrative fee per bond issue would be $75,000.

The estimate also assumes that the bill would have no fiscal impact in
the first year because a financial package associated with a bond issue
in fiscal year 2000 would not close until fiscal year 2001.

TWDB assumes that the administrative fee would be collected at project
initiation.  TWDB also assumes that the administrative fee would be
applied over the life of the state's ownership interest.  Therefore,
savings to the General Revenue Fund for each bond issue would be spread
over a 30-year period.
  
  
Local Government Impact
  
Political subdivisions would be charged an administrative fee for
projects under the State Participation program.  TWDB estimates that the
fee would be $75,000 for each $25 million in bonds.
  
  
Source Agencies:   
LBB Staff:         JK, BB, DM