LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 9, 2001
TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on
Natural Resources
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1628 by Deshotel (Relating to the transfer of certain
state property from the Texas Department of Mental Health
and Mental Retardation to Spindletop MHMR Services.), As
Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1628, As Engrossed: positive impact of $340,000 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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The bill would allow the conveyance of the Department of Mental Health
and Mental Retardation (TDMHMR) property and improvements from Beaumont
State Center to Spindletop MHMR Services in Jefferson County. The
property would be conveyed with restrictions and a reversionary clause
such that if mental health and mental retardation services were not
provided for a contiguous period of 180 days, the property would revert
back to TDMHMR ownership.
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $170,000 *
* 2003 170,000 *
* 2004 170,000 *
* 2005 170,000 *
* 2006 170,000 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year General Revenue Fund from Texas Capital Trust Fund *
* 0001 Account/ GR-Dedicated *
* 0543 *
* 2002 $170,000 $(4,359,540) *
* 2003 170,000 0 *
* 2004 170,000 0 *
* 2005 170,000 0 *
* 2006 170,000 0 *
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Fiscal Analysis
The bill would authorize the Department of Mental Health and Mental
Retardation (MHMR) to convey the land, buildings, and site improvements
of the former Beaumont State Center to Spindletop MHMR Services in
Jefferson County. The conveyance would be made with restrictions and a
reversionary clause such that the facilities would continue to be used to
provide mental health and mental retardation services. An October 2000
appraisal by the General Land Office showed the site and improvements to
be valued at $4,359,540.
The conveyance of this property could create a savings to General Revenue
of $170,000 per year, due to the state not having to provide funds for
major repair and renovation. The bill could also cause a loss of
potential General Revenue, due to the fact that if the property were
sold rather than conveyed, the state would earn the value of the
property and improvements totaling $4,359,540.
Methodology
The savings to General Revenue are estimated at $170,000 per year. This
cost is 3 percent of the Year 2000 facility replacement value ($5.6
million). The potential loss of revenue to the Capitol Trust Fund, a
General Revenue-Dedicated Account, is assumed to be equal to the
appraisal value of the property and improvements, totaling $4,359,540.
Local Government Impact
There should be no fiscal impact to units of local government.
Spindletop's assumption of financial responsibility for future capital
improvements to the buildings and related facilities on the properties
would be offset by the savings it realizes from not having to pay rent
or debt service to obtain facilities in which to deliver services. As
owner of the property, Spindletop would have access to funding and
financing sources for future capital improvements and construction on
the property, such as the Texas Council of MHMR Centers bond program,
that are not available to TDMHMR.
Source Agencies: 655 TX Dept. of Mental Health & Mental Retardation,
455 Railroad Commission of Texas, 305 General
Land Office
LBB Staff: JK, CL, DB, KF, MB