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