LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 24, 2001 TO: Honorable James E. "Pete" Laney, Speaker of the House, House of Representatives FROM: John Keel, Director, Legislative Budget Board IN RE: HB3088 by Turner, Sylvester (Relating to the creation and re-creation of funds and accounts in the state treasury, the dedication and rededication of revenue, and the exemption of unappropriated money from use for general governmental purposes.), As Passed 2nd House ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB 3088, As Engrossed: positive impact of $380,377,000 through * * the biennium ending August 31, 2003. * ************************************************************************** The bill would abolish funds, accounts, and revenue dedications created by the Seventy-seventh Legislature, Regular Session, unless specifically exempted in this bill. The bill identifies the funds, accounts and revenue dedications exempt from abolition. The bill also lists funds that, if created by the Seventy-seventh Legislature, would become accounts in the General Revenue Fund rather than separate funds. The bill would create the System Benefit Fund as a trust fund, create the Young Farmer Loan Guarantee Account and re-create the Pan American Games Trust Fund initially created in the Seventy-sixth Legislature. The bill would allow the Comptroller, as directed by the legislature, to reduce balances in dedicated accounts by the amounts which estimated revenues and unobligated balances exceeded appropriations on August 31, 2003. The bill would make the Telecommunications Infrastructure Fund (TIF) an account in the General Revenue Fund which would increase the amount available for certification from the General Revenue Fund in the 2002-03 biennium by $380,377,000. However, if Senate Bill 1783, which would reduce the TIF assessment, becomes law, the increase in the amount available for certification from the General Revenue Fund in the 2002-03 biennium would be reduced. At a rate of 0.5 percent, the certification gain would be only $108,200,000. At a rate of 0.76 percent, the certification gain would be only $202,600,000. Making the System Benefit Fund a trust fund would not have a fiscal impact in the 2002-03 biennium. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, SD, WP, RS