LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 13, 2001 TO: Honorable Clyde Alexander, Chair, House Committee on Transportation FROM: John Keel, Director, Legislative Budget Board IN RE: HB1045 by Alexander (Relating to the participation of the Texas Department of Transportation in the acquisition, construction, maintenance, and operation of toll facilities.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1045, As Introduced: positive impact of $0 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * State Highway Fund * * 0006 * * 2002 $0 * * 2003 0 * * 2004 0 * * 2005 (7,250,000) * * 2006 (8,750,000) * ***************************************************** Fiscal Analysis The bill would amend the Transportation Code to allow the Texas Department of Transportation (TxDOT) to spend money from any available source to participate in the cost of the acquisition, construction, maintenance, or operation of a public or private toll facility on terms and conditions established by the commission. The bill would retain the obligation that funds spent by TxDOT for a private entity's toll facility costs be repaid and credited to funds from which expenditures were made. The bill would make repayment for funds spent by TxDOT on public toll facilities permissible (currently repayment is required) and would also allow TxDOT to transfer State Highway Fund No. 006 (Fund 6) funds to the Texas Turnpike Authority Revolving Fund without a repayment obligation to Fund 6. The bill would allow TxDOT to participate in the cost of the acquisition, construction, maintenance, or operation of a toll facility by the Texas Turnpike Authority (TTA) and would require the TTA to make repayments from toll revenue or other sources on terms established by the commission. The bill would also require that all repayments received be credited to funds from which expenditures were made and that any bond or other debt obligation issued by a public or private entity for financing a toll facility in which TxDOT participates is an obligation of the issuing entity and not of the State. The bill would take effect on the date on which the constitutional amendment proposed by H.J.R. 55, 77th Legislature, Regular Session, 2001, authorizing aid for turnpikes, toll roads, and toll bridges, takes effect. If the amendment is not approved by the voters, the bill would not take effect. The proposed amendment would be submitted to voters during the election to be held November 6, 2001. Methodology It is assumed that all Fund 6 funds provided for toll projects would be absolved of the repayment obligation required under current law. TxDOT currently estimates that $790 million in Fund 6 funds would be utilized to participate in toll projects. It is assumed that repayments for any or all of these funds, in accordance with current law, would not occur until after fiscal year 2006. It is also assumed that any current outstanding loan made from Fund 6 funds for toll projects would also be absolved of the repayment obligation required under current law. TxDOT currently anticipates that $16 million in loan repayments would be received from fiscal years 2005 through 2006 and that additional payments would continue through fiscal year 2030. Local Government Impact The bill would allow TxDOT to provide funding that would significantly offset local government costs with the State's participation in the construction of toll facilities and the absence of a repayment obligation. Funding provided through grants would have a significant positive impact on local entities issuing bonds for construction, whereas funding through loans would not. Source Agencies: 454 Texas Department of Insurance, 601 Texas Department of Transportation, 304 Comptroller of Public Accounts LBB Staff: JK, JO, RT, MW