LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 26, 2001
TO: Honorable Clyde Alexander, Chair, House Committee on
Transportation
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB342 by Shapiro (Relating to the participation of the
Texas Department of Transportation in the acquisition,
construction, maintenance, and operation of toll
facilities.), As Engrossed
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB342, As Engrossed: 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 Year Probable Revenue Gain/(Loss) from *
* State Highway Fund *
* 0006 *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 (7,250,000) *
* 2006 (8,750,000) *
*****************************************************
Fiscal Analysis
The bill would amend the Transportation Code to allow the Texas
Department of Transportation (TxDOT) to spend money from any available
source to participate in the cost of the acquisition, construction,
maintenance, or operation of a public or private toll facility on terms
and conditions established by the Texas Transportation Commission (TTC).
The bill would allow TxDOT to provide for the expenditure of money for
the cost of the acquisition, construction, maintenance, or operation of a
toll facility by the Texas Turnpike Authority (TTA) and would allow
TxDOT to require the TTA to make repayments from toll revenue or other
sources on terms established by the TTC.
The bill would retain the obligation that funds spent by TxDOT for a
private entity's toll facility costs be repaid and credited to funds from
which expenditures were made. The bill would make the repayment of
funds spent by TxDOT on public toll facilities permissible (currently
repayment is required) and would also allow TxDOT to transfer State
Highway Fund No. 006 (Fund 6) funds to the Texas Turnpike Authority
Revolving Fund without a repayment obligation to Fund 6. The bill would
provide requirements and guidelines for making financial contributions
and transfers to the revolving fund and would allow the TTC to require
the repayment of contribution amounts. The bill would also require that
all repayments be credited to funds from which expenditures were made and
that any bond or other debt obligation issued by a public or private
entity for financing a toll facility in which TxDOT participates is an
obligation of the issuing entity and not of the State.
The bill would require that money granted during each federal fiscal year
by TxDOT may not exceed 30 percent of the obligation authority under the
federal-aid highway program during the biennium and that any project
using constitutionally dedicated funds received from grants or loans be
subject to certain bid and contract procedures. The subsection of the
bill making this requirement would take effect March 1, 2003.
The bill would take effect on the date on which the constitutional
amendment proposed by S.J.R. 12, 77th Legislature, Regular Session,
2001, authorizing aid for turnpikes, toll roads, and toll bridges, takes
effect. If the amendment is not approved by the voters, the bill would
not take effect. The proposed amendment would be submitted to voters
during the election to be held November 6, 2001.
Methodology
It is assumed that all Fund 6 funds provided to public entities for toll
projects would be absolved of the repayment obligation required under
current law. TxDOT currently estimates that $790 million in Fund 6
funds would be utilized to participate in toll projects. It is assumed
that repayments for any or all of these funds, in accordance with
current law, would not occur until after fiscal year 2006. It is also
assumed that any current outstanding loan made to public entities from
Fund 6 funds for toll projects would also be absolved of the repayment
obligation required under current law. TxDOT currently anticipates that
$16 million in loan repayments would be received from fiscal years 2005
through 2006 and that additional payments would continue through fiscal
year 2030.
Local Government Impact
The bill would allow TxDOT to provide funding that would significantly
offset local government costs with the State's participation in the
construction of toll facilities and the absence of a repayment
obligation. Funding provided through grants would have a significant
positive impact on local entities issuing bonds for construction,
whereas funding through loans would not.
Source Agencies: 601 Texas Department of Transportation
LBB Staff: JK, JO, MW