LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 8, 2001 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John Keel, Director, Legislative Budget Board IN RE: HB1832 by Hamric (Relating to county and road district highway fund.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1832, As Introduced: negative impact of $(56,348,000) 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Net Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(27,553,000) * * 2003 (28,795,000) * * 2004 (30,393,000) * * 2005 (32,232,000) * * 2006 (34,214,000) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) to * * Year General Revenue Fund County and Road District * * 0001 Highway Fund * * 0057 * * 2002 $(27,553,000) $27,553,000 * * 2003 (28,795,000) 28,795,000 * * 2004 (30,393,000) 30,393,000 * * 2005 (32,232,000) 32,232,000 * * 2006 (34,214,000) 34,214,000 * *************************************************************************** Fiscal Analysis The bill would amend the Tax Code by requiring the Comptroller to deposit one percent of the amount collected from motor vehicle sales and use taxes, and certain penalties, to the credit of the County and Road District Highway Fund (Fund 57) instead of depositing the amount in the General Revenue Fund. The bill would not impact the 25 percent deposited to the credit of the Foundation School Fund. The bill would also amend the Transportation Code by adding a new section to establish a minimum level of funding for counties from certain moneys collected and a new formula for allocating those funds to counties. The bill would require that each county receive no less than 150 percent of the funding it received in fiscal year 2000; that 50 percent of the funds be allocated according to total county population; and 50 percent be allocated according to the county road lane miles. The bill would require that calculations be made using ratios comparing each county's population and number of county road lane miles to the state population and number of county road lane miles. The bill would require this calculation to be made as of January 1 of the allocation year as shown by the records of the Texas Department of Transportation. The bill would also allow a county to request that the Transportation Commission have a survey made of the county's lane miles and that upon completion use the survey results in determining the allocation. The bill would take effect September 1, 2001. Methodology It is assumed that the new section created by the bill would take precedence over Section 256.002 (b) and (c), Transportation Code. For the purposes of this analysis, the amount of motor vehicle sales tax revenues estimated to be deposited in Fund 57 were based on information provided in the Comptroller's 2002-2003 Biennial Revenue Estimate. It is estimated that approximately $27.5 million in additional revenue would be available for Fund 57 in fiscal year 2002 and that amounts would increase by approximately 5 percent each year in fiscal years 2003 and 2004, and again by approximately 6 percent in fiscal years 2005 and 2006. Local Government Impact The bill would require counties with larger populations and more county road lane miles to receive more funding from Fund 57 allocations than counties with smaller populations and fewer county road lane miles. Although the bill requires that each county receive no less than 150 percent of the funding it received in fiscal year 2000, some counties may receive less than the guaranteed amount during the first year due to amounts available in Fund 57. It is assumed that if this occurs it would only be an issue during the first year. Source Agencies: 601 Texas Department of Transportation, 304 Comptroller of Public Accounts LBB Staff: JK, SD, RT, MW