LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 27, 2001
TO: Honorable Tom Ramsay, Chair, House Committee on County
Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2868 by Ramsay (Relating to grants for certain
counties to provide certain essential services.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2868, As Introduced: negative impact of $(12,988,816) 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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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(6,336,008) *
* 2003 (6,652,808) *
* 2004 (6,985,448) *
* 2005 (7,334,720) *
* 2006 (7,701,456) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) to *
* Year General Revenue Fund Counties *
* 0001 *
* 2002 $(6,336,008) $6,336,008 *
* 2003 (6,652,808) 6,652,808 *
* 2004 (6,985,448) 6,985,448 *
* 2005 (7,334,720) 7,334,720 *
* 2006 (7,701,456) 7,701,456 *
***************************************************************************
Technology Impact
There would be no technology impact.
Fiscal Analysis
The bill would authorize the Texas Department of Housing and Community
Affairs (TDHCA) to distribute funds appropriated by the legislature to
counties that have reached the maximum constitutional tax limit to pay
for essential governmental services. The essential services identified
in the bill are law enforcement services, including jail or court;
maintenance of public buildings; and public record-keeping. TDHCA would
be required to adopt regulations for the distribution and monitoring of
these funds. The funds would be subject to audit by the State Auditor's
Office.
Methodology
The provisions of the bill would be applicable to counties that have
levied the maximum state tax set in the constitution ($0.80 for the
general fund) for the two-year period preceding the distribution.
According to representatives of the Texas Association of Counties and the
property tax division of the Comptroller of Public Accounts, the
counties for the 1998-1999 period that would meet the eligibility
requirements would be Jim Hogg, Duval, Delta, and Kenedy. This is the
most current information available at this time.
Jim Hogg County, population of 5,007, reported essential governmental
services cost the county over $1.8 million out of a total budget of
approximately $4.5 million. Duval County, population of 13,662, reported
the services cost the county over $2.1 million out of a total budget of
$7.3 million. Delta County, population of 4,945, reported the services
cost the county $780,865 out of a total budget of slightly under $2
million. Kenedy County, population of 438, reported their essential
governmental services cost the county $738,030 out of a total budget of
over $2.4 million. Essential governmental services for the four counties
totaled almost $5.5 million in fiscal year 1999.
It is assumed that only these four counties would continue to meet the
eligibility requirements under the bill and that the costs for essential
services would have increased by 5 percent each year since the 1999
figures supplied through fiscal year 2006. The amounts presented
represent the maximum anticipated costs should the state choose to pay
100 percent of the essential governmental services for the four
identified counties.
Local Government Impact
The counties to which the provisions of the bill apply would experience a
savings equivalent to the amount of the state's cost.
Source Agencies: 304 Comptroller of Public Accounts, 332 Texas
Department of Housing and Community Affairs
LBB Staff: JK, DB, ER