LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 1, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3532  by Coleman (Relating to economic development by
               local governmental entities.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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This bill would allow municipalities and counties to create commercial
and industrial development zones in areas of pervasive poverty,
unemployment, or economic distress.  These zones would be limited to
counties with a population of 2.5 million or more, which would be Harris
County.  Currently, only municipalities may create tax increment
reinvestment zones.

There could be an increase in the valuation of tax increment financing
(TIF) property due to the provisions of the bill.  In 1999,
approximately $20.1 million in school district tax levies was lost to
TIF agreements, which was passed on to the state through the school
funding formulas.  Depending on the number of school districts that
elect to participate in TIF agreements under the provision of the bill,
there could be a cost increase to the state. However, it is not
anticipated that this would lead to a significant fiscal impact on the
state's school funding appropriations level.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts, 601   Texas
                   Department of Transportation, 320   Texas Workforce
                   Commission
LBB Staff:         JK, SD, BR