LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 22, 2001
  
  
          TO:  Honorable James E. "Pete" Laney, Speaker of the House,
               House of Representatives
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2522  by Wilson (relating to requiring the Texas
               Department of Transportation to establish and maintain a
               state airport in Central Texas.), As Passed 2nd House
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend the Transportation Code by requiring the Texas
Department of Transportation  (TxDOT) to establish and maintain an
airport, in consultation with the State Aircraft Pooling Board, in
Central Texas that would be open to the general public.  The bill would
require TxDOT to conduct the site selection, would establish criteria and
requirements for determining the site selection, and would provide TxDOT
with all powers necessary or appropriate to implement the provisions of
the bill.  The bill would require TxDOT to use only federal matching
funds, federal grants, in kind contributions, private sector funds,
nonprofit grants and local government funding for the establishment of
the facility, and would require the approval of a local government to
acquire land within their jurisdiction to build an airport.  The bill
would establish criteria and requirements for TxDOT to contract for the
operation of the facility following the completion of construction.

TxDOT estimates that no significant fiscal implications to the State
would be realized based on the following assumptions:  that no eligible
local entity would provide the required 10 percent match for federal
funding; that there are not currently any eligible non-profit grants that
could be used for the matching requirement; that no private sector
entity would contribute matching funds due to the inability of that
entity to control the airport; and that no local government would approve
acquisition of land within their jurisdictions.

TxDOT estimates that if required matching funds were provided, the total
cost of such a facility would be approximately $52 million and that of
this amount approximately $31.1 million would be provided in federal
funds that would come through TxDOT.  TxDOT also estimates the remaining
$20.9 million would comprise an amount for any required matching funds
and establishment costs that could not be paid for with federal funds.

The bill would take effect immediately upon receiving a two-thirds
majority vote in both houses; otherwise, the bill would take effect
September 1, 2001.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated based on the assumptions stated above.  However, if required
matching funds were provided by a local entity, it is estimated that
costs of approximately $20.9 million would be realized and that this
would comprise an amount provided for required matching funds and
establishment costs that could not be paid for with federal funds.
  
  
Source Agencies:   601   Texas Department of Transportation
LBB Staff:         JK, RB, RT, MW