LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                               May 22, 1999
  
  
          TO:  Honorable Tom Ramsay, Chair, House Committee on County
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SJR 4  by Madla (Proposing a constitutional amendment to
               create a consolidated El Paso Metro government by
               consolidating El Paso County and certain political
               subdivisions.), Committee Report 2nd House, Substituted
  
**************************************************************************
*  No fiscal implication to the State is anticipated, other than the     *
*  cost of publication.                                                  *
*                                                                        *
*  The cost to the state for publication of the resolution is $76,352.   *
**************************************************************************
  
Local Government Impact
  
The resolution would consolidate the City of El Paso into El Paso County
to form the El Paso Metro government, upon the approval of the majority
of voters in El Paso County.

There could be some costs associated with the planning for the
consolidation of city and county government services and methods for
operating the services under the El Paso Metro government. However, such
costs are not anticipated to be significant.

If the City of El Paso and other local governments in El Paso County are
consolidated into the El Paso Metro Governments, there could be some
initial costs associated with equalizing pay scales among local
governments. The cost would depend on whether a substantial number of
employees would require salary increases.

There could be some long-term cost savings associated with
municipal-county government integration, since some duplicate services,
administration, equipment and facilities could be eliminated, reduced or
disposed of. In addition, an integrated government could reduce the
number of full-time equivalent employees and officers needed, potentially
resulting in cost-savings to the integrated government. The cost-savings
would depend on the number of positions that could ultimately be
eliminated.

A consolidated El Paso Metro government could realize some revenues
through the sale of excess facilities, equipment and property, depending
on the amount of such property the entity would chose to sell.
  
  
Source Agencies:   
LBB Staff:         JK, TL