LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 20, 2001 TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on Natural Resources FROM: John Keel, Director, Legislative Budget Board IN RE: SB312 by Zaffirini (Relating to the review and functions of the Texas Water Development Board.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB312, As Introduced: positive impact of $0 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Probable Probable Change in * * Year Savings/(Cost) Savings/(Cost) Revenue Number of State * * from Other from Gain/(Loss) Employees from * * Funds-- Appropriated from FY 2001 * * TWRFA Receipts Appropriated * * 0997 0666 Receipts * * 0666 * * 2002 $(274,000) $(25,000) $25,000 1.5 * * 2003 (274,000) (25,000) 25,000 1.5 * * 2004 (274,000) (25,000) 25,000 1.5 * * 2005 (274,000) (25,000) 25,000 1.5 * * 2006 (274,000) (25,000) 25,000 1.5 * *************************************************************************** Technology Impact The cost of providing an additional FTEs with computers is estimated at $1,800 in fiscal year 2002. This cost would be paid using Texas Water Resources Finance Authority (TWRFA) proceeds. It is estimated that $25,000 in additional appropriated receipts per year will be spent on upgrades to the Texas Natural Resource Information System (TNRIS), including faster Internet connections and hardware upgrades. These funds will be recovered through fees charged to private entities to establish partnerships with the Texas Water Development Board and TNRIS. Fiscal Analysis The bill would require the agency to develop a capital spending plan setting water project priorities to be supported by state-funded programs, including the Texas Water Development Fund, the Agricultural Water Conservation Fund and the Water Assistance Fund. The bill would establish a separate account in the clean water revolving fund to be used to provide financial assistance to private entities for nonpoint source pollution control and abatement policies. The bill would create The Rural Community Water and Wastewater Loan (RCWWL) Fund within the Water Assistance Fund No. 480. The RCWWL Fund would consist of money transferred by the Board from the water assistance fund, from proceeds of the sale of political subdivision bonds by the Board to the TWRFA and from repayments on loans made from the fund. The Fund would be used to make loans to rural communities for the construction, acquisition or improvement of water and wastewater projects. The bill would allow the Water Development Board to enter into partnerships with private entities on behalf of the TNRIS and allow the agency to collect fees for such arrangements. Methodology There could be some administrative costs associated with the bill's requirement that a Capital Spending Plan be developed. However, it is anticipated that these costs could be absorbed within the agency's existing budget. There is also no significant fiscal impact expected from the bill's requirement that a separate account be established in the clean water revolving fund to be used to provide financial assistance to private entities for nonpoint source pollution control and abatement policies. Assuming that only amounts in the TWRFA account would be available to fund loans from the RCWWL Fund, it is estimated that of the total $1,370,000 remaining in TWRFA, $920,000 in loans would be made from the Fund over the period fiscal year 2002 through 2005, with an average $184,000 per year. It is estimated that 5 to 6 loans would be made to rural communities over that period, and that the Water Development Board would require one additional FTE to administer the loan program. Costs associated with this program, including those associated with salaries, wages, equipment and travel are estimated at $90,000 per year and would be paid using TWRFA proceeds, which are outside the state treasury. It is estimated that the Water Development Board would charge fees totaling $25,000 per year for the establishment of partnerships with private entities on behalf of the TNRIS system. It is expected that all of these proceeds would be spent to improve the TNRIS system's accessibility to the Internet. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 592 State Soil & Water Conservation Board, 313 Department of Information Resources, 582 Texas Natural Resource Conservation Commission, 116 Sunset Advisory Commission, 332 Texas Department of Housing and Community Affairs, 580 Texas Water Development Board, 304 Comptroller of Public Accounts, 302 Office of the Attorney General, 307 Secretary of State LBB Staff: JK, CL, TL