LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 10, 2001 TO: Honorable Florence Shapiro, Chair, Senate Committee on State Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: HB3323 by Solomons (Relating to the creation, organization, and powers of a coordinated county transportation authority; authorizing the imposition of a tax, the issuance of bonds and notes, and the exercise of the power of eminent domain.), As Engrossed ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** Local Government Impact The fiscal impact to units of local government would vary depending on the size of the local body, the transportation services that would be provided under the provisions of the bill, and current tax law. It is assumed that larger counties, population 300,000 or more, will be more likely to establish a regional transit authority (RTA) than counties with smaller populations. For the purposes of providing a cost estimate, the Corpus Christi Regional Transportation Authority (RTA) was contacted. The Corpus Christi RTA services Nueces county, which has an estimated population of 300,000, reported providing bus and paratransit services and operating on approximately $23 million each year. It is assumed that RTAs providing like services in other counties may realize similar operating costs in addition to initial start up costs. It is also assumed that counties, and municipalities within those counties, establishing and maintaining an RTA would utilize taxation, fees, and bond initiatives to fund transportation services and that generated revenue would cover the cost of operation. The bill allows for the formation of an executive committee to determine the minimum uniform rate for taxation. The bill would also allow a municipality, after holding an election, to establish a tax rate that is higher than the minimum uniform rate established by the executive committee if the established authority will provide the municipality with a higher level of service. Source Agencies: LBB Staff: JK, RB, RT, MW, DW