LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 19, 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.), Committee Report
1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB312, Committee Report 1st House, Substituted: negative impact *
* of $(3,000,000) 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 $(3,000,000) *
* 2003 0 *
* 2004 (3,000,000) *
* 2005 0 *
* 2006 (3,000,000) *
****************************************************
All Funds, Five-Year Impact:
***********************************************************************
*Fiscal Probable Probable Probable Probable Change in *
* Year Savings/ Savings/ Revenue Savings/ Number of *
* (Cost) from (Cost) from Gain/(Loss) (Cost) from State *
* General Other from Appropriat- Employees *
* Revenue Funds-- Appropriat- ed Receipts from FY 2001 *
* Fund TWRFA ed Receipts 0666 *
* 0001 0997 0666 *
* 2002 $(274,000) $25,000 $(25,000) 1.0 *
* $(3,000,000) *
* 2003 0 (274,000) 25,000 (25,000) 1.0 *
* 2004 (3,000,000) (274,000) 25,000 (25,000) 1.0 *
* 2005 0 (274,000) 25,000 (25,000) 1.0 *
* 2006 (3,000,000) (274,000) 25,000 (25,000) 1.0 *
***********************************************************************
Technology Impact
The bill would require the cost of providing an additional FTE with a
personal computer that 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 Texas Water Development Board (TWDB) to
develop a capital spending plan identifying water needs of the state and
setting forth a basis for allocating state-supported funding to address
those needs. The bill would provide to the TWDB the authority to make
grants from the Water Assistance Fund No. 480 on specific appropriation
by the Legislature.
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
add to the list of hydrographic survey types the agency authorized to
perform those conducted to collect information relating to water-bearing
formations. Fees collected would be deposited to the Hydorgraphic Survey
Account within the Water Assistance Fund.
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.
The bill would establish the Colonia Self-Help program to be administered
by the Water Development Board, with assistance from the Secretary of
State's Office in fiscal years 2002 and 2003. The bill also would create
the Colonia Self-Help Account in the General Revenue Fund. The Account
would be used to reimburse nonprofit organizations engaged in self-help
water, wastewater and platting projects in colonias.
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. Allowing the TWDB to make grants from the Water
Assistance Fund likewise would result in no significant fiscal
implications, since the agency already has the authority to make loans
from the Fund and to make grants from the Fund to economically distressed
areas.
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.
There would also be no significant impact resulting from the bill's
provisions regarding hydrographic surveys.
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, $900,000 in loans would be made from the
Fund during fiscal years 2002 through 2005, with an average $180,000 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 that are estimated at $94,000 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.
Although the bill does not specify an amount of funds to be provided to
the Colonia Self-Help Account, this estimate assumes that $3 million in
General Revenue would be appropriated to the Account in fiscal years
2002, 2004 and 2006 for reimbursements and grants to nonprofit
organizations engaged in self-help projects.
If no appropriation is made to the Colonia Self-Help Account, no
significant fiscal impact to the state would be anticipated as a result
of the bill's enactment.
Administrative costs associated with the Colonia Self-Help program are
expected to be absorbed within the existing budgets of the Water
Development Board and Secretary of State's Office.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 580 Texas Water Development Board
LBB Staff: JK, CL, TL