LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 8, 2001 TO: Honorable David Cain, Chair, Senate Committee on Administration FROM: John Keel, Director, Legislative Budget Board IN RE: HB2810 by Wolens (Relating to the application of statutes that classify political subdivisions according to population.), As Engrossed ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would change the population limits used in various statutes to reflect 2000 census figures, thus leaving in place those provisions in statute for which any activity is limited based on population brackets. As a result, the political subdivisions for which the original population limits were applicable would continue to be the only political subdivisions affected. An exception is that the figures used for population limitations in Section 143.301, Local Government Code, would remain the same as under current statute. The act would take effect September 1, 2001. The provisions of the bill would primarily affect distribution of state funds, regulatory or reporting functions, or certain programs or activities by or for political subdivisions. The total amount of state moneys would not change as a result of the proposed change in statutes, and therefore, no significant fiscal implication to the state is anticipated. Absent implementation, however, there would be significant impact on the distribution of funding for certain programs because of population shifts. Local Government Impact Under existing statute, a political subdivision that is not currently eligible for a program, fund, exemption, taxing authority, or other activity under a population limitation, could move into a bracket that changes its eligibility as a result of the new census figures. A political subdivision to which a statute currently applies could shift below or above a bracket and lose eligibility for an activity. Various local political subdivisions could experience negative or positive fiscal impacts, some of which could be significant, depending on their population shifts under existing statute after September 1, 2001. Under the provisions of the bill, however, no significant fiscal impact to units of local government is anticipated. Source Agencies: LBB Staff: JK, SD, RB, WP, DB