LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 27, 2001
TO: Honorable David Counts, Chair, House Committee on Natural
Resources
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB622 by Lewis, Ron (Relating to financing rural water
projects in the State of Texas.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB622, As Introduced: negative impact of $(6,000,000) through the *
* biennium ending August 31, 2003. *
* *
* 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 Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(3,000,000) *
* 2003 (3,000,000) *
* 2004 (3,000,000) *
* 2005 (3,000,000) *
* 2006 (3,000,000) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 2001 *
* 0001 *
* 2002 $(3,000,000) 6.0 *
* 2003 (3,000,000) 6.0 *
* 2004 (3,000,000) 6.0 *
* 2005 (3,000,000) 6.0 *
* 2006 (3,000,000) 6.0 *
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Technology Impact
The technology impact of the bill is estimated at $10,800 for the
purchase of new computers for additional required FTEs.
Fiscal Analysis
The bill would create the Rural Water Assistance Fund as a General
Revenue account to provide assistance for water and water-related
projects to rural political subdivisions and to finance an outreach and
technical assistance program to assist rural political subdivisions in
obtaining assistance through the fund.
The bill also would exempt from the sales tax items purchased by a
nonprofit water supply or sewer service corporation for any project
financed by the Rural Water Assistance Fund.
Methodology
It is expected that the Water Development Board would require additional
funds and FTEs to administer the Rural Water Assistance Fund (RWAF).
Costs to the agency would depend on the amount available in the RWAF to
make loans and grants.
Although the bill does not specify an amount to be deposited to the RWAF,
this estimate assumes that the Water Development Board would issue
approximately $16 million in bonds in each biennium and that $3 million
out of the General Revenue Fund would be appropriated to the RWAF in each
fiscal year to buy down interest rates for loan and for outreach and
administration. It is estimated that the Water Development Board would
use $470,000 of this amount (including employee benefits) and require 6
additional FTEs in each fiscal year for outreach and administration as
provided in the bill. It is expected that the remaining $2,530,000 in
each year used to buy down interest rates on loans and grants to rural
political subdivisions.
If no funds are appropriated to the RWAF, it is assumed there would be no
significant program activity, and therefore no significant costs to the
Water Development Board associated with the administration of the program
in those years.
The tax exemption provisions of the bill are not expected to result in a
significant loss of revenue to the state.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 551 Texas Department of Agriculture, 580 Texas
Water Development Board, 304 Comptroller of Public
Accounts, 332 Texas Department of Housing and
Community Affairs
LBB Staff: JK, CL, TL